A study published on Monday by the Fundraising Effectiveness Project reported that charitable giving contributions in the USA only increased 1.6% last year despite a strong economy.
The report also highlights the 4.5% decrease in total donors from 2017, indicating a shrinking pool of individuals involved in philanthropy.
Donations under $1,000 from smaller and middle class donors fell by more than 4%, while gifts from major donors increased 2.6%, the Washington Post reported.
The Council of Foundations and other groups within the charitable sector have warned lawmakers about the impact that the 2017 tax overhaul could have on charitable giving. Under the new tax law, millions of Americans no longer qualify to take the charitable tax deduction, which is a giving incentive.
[Council of Foundations]