Most donors give to support a cause. The tax break is a nice perk.

But this year, charities are hoping donors will be swayed solely by generosity, as far fewer taxpayers will be incentivized by deductions.

The new tax law passed late last year roughly doubles the standard deduction for individuals and married couples to $12,000 and $24,000, respectively, which studies project will result in fewer people who itemize their taxes.

Experts say this single change could have far-reaching consequences, from home mortgages to charitable giving to churches, nonprofits, foundations and the causes they support.

Smaller donations in the $25 to $250 range typically come from people who are charitably-minded and simply want to make a difference, said Marcelle Epley, president and CEO of the Long Beach Community Foundation.

Larger donors, meanwhile, are more likely to expect a tax break.

“We really believe that the majority of people who are giving are giving because they want to make a difference,” she said.

They may, however, change how and when they give, Epley said. Instead of giving small or medium donations each year, donors may opt to “bunch” their donations, giving a larger amount one year and nothing the next.

The foundation has also seen a rise in donor-advised funds, which are accounts that people can set up with the foundation and other charities that serve as a sort of checking account for donations. The donors get the tax break the year they fund the account, but can actually dole out the money whenever they want.

The local foundation now manages about 70 such accounts, and Epley expects them to gain popularity.

Local charities

December is typically the month when charities make their biggest push for donations, both because of the holidays and the looming tax deadline.

Despite a strong economy, the Long Beach Rescue Mission is down in donations from last year, but Executive Director Robert Probst said it’s difficult to pinpoint the cause.

“We’re doing OK,” he said, “but the trend is down.”

December, he said, is the mission’s biggest month for fundraising by far—the organization, which provides services to the homeless, relies on seasonal donations to get through the rest of the year.

“All we can do is continue to get the word out that we need help,” Probst said. “We have a lot of people who are struggling every day, and the need continues to go up.”

Another well-known charity in Long Beach, Children Today, hasn’t seen a dip in donations, but officials are keeping a close eye on what happens in the future.

“My guess is it may take one or two years before we see the full impact (of the tax law),” said Tonya Burns, executive director of Children Today. “Once we go through a couple rounds, the impact may become clearer.”

Melissa Evans is the Chief Executive Officer of the Long Beach Post and Long Beach Business Journal. Reach her at [email protected], @melissaevansLBP or 562-512-6354.