Policy changes

In advance of changes to U.S. tax policy that will go into effect in 2026, high-net-worth donors and corporations may reconsider their 2025 charitable giving strategies. The ‘One Big Beautiful Bill’ which passed in July introduces a 0.5% of adjusted gross income (AGI) floor on individual charitable deductions (ie itemizers must donate 0.5% of their AGI before the charitable deduction kicks in) and a 1% of income floor for corporations starting next year.

While there’s debate about how significant the impact will be—especially since corporate giving already averages 1.1% of income—some experts suggest we may see an uptick in major gifts in 2025 as donors act before the new rules take effect.

Actions

Now may be the right time to:

• Engage your US major donors in conversations about their year-end giving
• Review your US donor strategies in light of upcoming changes
• Prepare for a potential shift in giving patterns from US major donors and corporations

Read the full article in The Chronicle of Philanthropy

Philanthropy in America

Though the reductions in US Federal funding have made news in recent months, it’s important to remember that philanthropy in America comes from many other sources. The latest Giving USA report, which provides an annual analysis of philanthropic giving in America, shows a 3.3% increase in charitable giving for 2024, with donations totalling US$593 billion.

Insights from Heather Hill

Heather Hill, CNM, CFRE, Head of International Fundraising for Chapel & York shares her thoughts: ‘If you’re fundraising in the US, you should take note that giving from individuals and corporations increased and foundation giving held steady. Furthermore, all causes saw an increase in support, with the exception being religious causes which decreased by 1% but still remains the leading recipient.’

Opportunities for international fundraisers

What does this mean for your international fundraising from America? There are still abundant opportunities to secure support for your mission. Be sure your organisation’s case for support is current and compelling, research your prospects to better understand their charitable priorities and motivations, and thoughtfully steward relationships.

We know that with all the information floating around in the media about the situation in the US, there are concerns about what may/might/could happen going forwards. Whilst we will not engage in any speculation we can clarify what, as of today, is the position, and what, if you or your stakeholders have concerns, you may want to look at doing regarding your US engagement. The overall message from us though is DO NOT PANIC.

The Current Situation

There has been no suggestion that 501(c)(3) status for the nearly 1.5 million 501(c)(3) organisations will be terminated. There has also been no suggestion that tax deductibility of donations to those organisations will be terminated. These would require administrative procedures. Up to now the focus has been on Federal (US Government) funding for activities with which the Administration does not agree such as DEI (Diversity Equality Inclusion) and Climate Change, the use of Federal funds and US international aid.

There are legal limitations as to what a US President can do and unilaterally terminating 501(c)(3) status is not in his legal remit. Executive Orders have been legally challenged and are with the courts to make further determinations.

Actions

If you and/or your stakeholders are concerned about the way things are moving in the USA, we can make the following suggestions for some small actions you can take:

1. Ensure you make any grants now rather than waiting so that could mean either through a Unanimous Written Consent or a Board Meeting
2. Speak to donors about accelerating any donations, particularly large ones.
3. Review the programmes for which you are seeking funds and perhaps moving from any DEI, Climate Change or similar activities which might be targeted.

We are constantly reviewing the situation and our extremely connected and involved Head of International Philanthropy, Heather Hill, is serving as the Coordinator for monitoring this. She is always available to you, as indeed am I to answer questions.

We wish you all the best.
Kind regards,
Nancy Bikson

Extension Announced

The Canadian Federal Government has announced an extension to the 2024 charitable donation deadline to 28 February 2025. This decision comes in response to the Canada Post strike, which significantly disrupted year-end donations critical to many charities.

Read the Canadian Federal Government news release to find out more.

Chapel & York Canada Foundation

The Chapel & York Canada Foundation welcomes this news, and we are happy to continue facilitating donations from your donors.

Tax return

💡 Not sure how this deadline affects your tax return? We encourage you to consult your tax professional for tailored advice.

Experience and Expertise

With over 15 years of international experience in the non-profit and social impact sectors, Lior brings a wealth of knowledge and a deep commitment to fostering inclusive, accountable, and empowering environments. Her extensive background in strategic organisational change, sustainable partnership building, and operational efficiency will be invaluable to our mission.

Lior’s leadership acumen is well-established, having successfully guided various organisations towards achieving their goals both internally and externally.

Beyond her professional achievements, Lior is a dedicated member of Giving Women, working tirelessly to strengthen women-led initiatives for women and girls around the world.

Please join us in welcoming Lior to our team. We are confident that her expertise and passion will significantly contribute to our Swiss foundation clients.

The Switzerland Foundation

Unlock the full potential of Swiss fundraising opportunities.

Experience and Expertise

Kevin brings with him over 25 years of rich professional experience in both the nonprofit and corporate sectors. His career is driven by an unwavering passion to serve. At New York Life Insurance Company, he developed award-winning corporate responsibility programmes. At AARP Foundation, he created groundbreaking intervention initiatives in Chicago’s inner-city public schools. Most recently, at the Community Foundation of the Lowcountry, he helped donors define and achieve their philanthropic goals. Kevin’s work is backed by a strong educational foundation, holding an undergraduate degree in business management and accounting from the University of Massachusetts in Boston and a master’s degree in policy from Columbia University in New York City.

In Kevin’s own words, “I am delighted to join the dynamic team at Chapel & York, the market leader in international fundraising. As a trusted partner, the Chapel & York US Foundation is a critical resource, helping non-US organisations effectively access US donors and maximise support for their work. I look forward to engaging with our fundholders across the globe to ensure they benefit from Chapel & York’s knowledge and expertise.”

We’re excited for the innovative leadership and passion Kevin will bring to our US foundation. Please join us in welcoming him to our team.

The US Foundation

The Chapel & York US Foundation is a registered 501(c)(3) charitable organization and can help you accept donations from the US.

Comparison Table

Our comparison highlights the advantages of each option, covering regulations, governance, finances, and donor trust.

Fundraising Options

When it comes to fundraising on an international level, organisations have two main options: establishing their own legal entity in another country or partnering with an established charity. Both of these approaches have their advantages and it is important to carefully consider which option would be the most beneficial for you.

Get in Touch

Regardless of your choice, rest assured that we at Chapel & York are here to support you. Get in touch for an informal chat about which model works best for you.