Part 2: How Smart Leaders Are Turning Tax Chaos Into Cash

This is Part 2 of our series on the tax law shake-up. If you missed Part 1, read it here to learn about the changes that could make or break your fundraising.

The new tax law brings both lightning-fast opportunities and long-term challenges. Nonprofits that play their cards right can not only survive but also thrive in this new world of charitable giving.

The Winning Playbook: Smart Strategies for the New Reality

Perfect Your Donor Messaging

You need separate messages for different types of donors. Tell wealthy donors about giving urgently in 2025. Tell regular donors about their new tax benefits starting in 2026 (Childress, 2025). For donors thinking about DAFs, explain why giving directly builds better relationships.

Play the Long Relationship Game

Wealthy donors may give money in bunches, donating a lot one year, then nothing the next. With more DAF giving, you need to work harder to stay connected with major donors who might become more distant (Childress, 2025).

Champion the Everyday Giver

The new tax break for regular people especially is especially valuable for organizations where $2,000 makes a real difference. These gifts will likely be more direct and personal than DAF grants (Gose, 2025).

The Long Game: Why This Could Be Your Golden Opportunity

Bob Guittard, a fundraising consultant, explains the long-term opportunity: “You can't keep donors unless you get donors first. If charities are getting new donors because of this tax law—then building relationships with them over time—that will lead to steady growth” (Gose, 2025).

This law represents a big shift in how America thinks about charitable giving. For the first time in years, the government recognizes that a healthy nonprofit sector needs a lot of people giving, not just mega-gifts from the wealthy.

But success isn’t guaranteed. Tax breaks alone won't make people give. Woodrow Rosenbaum from GivingTuesday points out that “at the everyday-giving level, those givers are less incentivized by tax deductions” (Gose, 2025). The real impact will come from nonprofits using this chance to reconnect with old donors and build lasting relationships.

Your Mission-Critical Action Plan: Three Must-Do Moves

1. Become a Donor Detective: Look at your donor database to see who these changes will affect. Which major donors might give more in 2025? Which small donors who stopped giving could you bring back with the new 2026 benefits? Create different messages for each group. Consider hosting online meetings to teach donors how the changes affect them (Childress, 2025).

2. Think Like a Financial Fortune Teller: How will you handle a possible giving jump in 2025 followed by a drop in 2026? Think about putting extra 2025 donations into savings, building projects, or new programs. Remember that more major donor money might come through DAFs, which could affect when and how predictably you get gifts.

3. Build Your Small-Donor Empire: The new tax break for regular people is a huge chance to rebuild your base of everyday supporters. Do you have systems to find, grow, and keep donors who give $100-$2,000? You might need new fundraising technology, more staff, or partnerships with other organizations to share costs (Gose, 2025).

Your Make-or-Break Moment

The new tax law brings both quick challenges and long-term opportunities. Organizations that handle 2025’s giving rush while preparing for 2026’s new landscape will be best positioned for success.

The full effects won't be felt until people file their 2026 taxes in early 2027 (Childress, 2025). This creates a pivotal moment that will test every nonprofit’s ability to adapt and think strategically.

Don't Go It Alone: Your Strategic Partner Is Waiting

At Rural Pathways, we understand that these tax law changes create unique opportunities and challenges for organizations serving rural communities. The new tax break for regular people could especially help rural nonprofits, where $2,000 gifts often represent major support and where many supporters don't itemize their taxes.

Why struggle through these changes alone? Our team can help you create a winning plan to make the most of both the 2025 giving surge and the 2026 small-donor opportunities. We'll work with you to study your donor base, create targeted messages, and build the systems needed to succeed in this new world.

Contact Rural Pathways today to schedule a strategy session about how these tax changes can supercharge your organization and community impact. Together, we can turn this time of change into your organization's greatest growth story yet.

References:

Childress, R. (2025, July 31). Big gifts and the new tax law: Boom now, bust later? The Chronicle of Philanthropy.

Gose, B. (2025, July 29). Will the new $2,000 tax break bring back everyday donors? The Chronicle of Philanthropy.

Citation: Anderson, Charity & Gilpin, Staci. (2025). Part 2: How Smart Leaders Are Turning Tax Chaos Into Cash. Rural Pathways News.