Giving Thought: Tax law could impact charitable giving

"It's estimated that as few as 5 percent of taxpayers nationwide will continue to itemize their deductions," says Renny Fagan, president and CEO of the Colorado Nonprofit Association. "If 95 percent of taxpayers do not itemize, then they will not be able to claim the charitable deduction and benefit from this tax incentive."

This is the first tax year under the new rules, so it's too early to know whether giving will drop or by how much. But Fagan said one analysis of 2018 fundraising returns has shown a 7 percent decline in the number of donors and a 2 percent drop in giving over each of the first two quarters. "These are signs that Colorado's nonprofits could face a significant drop in giving in 2018," he added.

The Colorado Nonprofit Association's 2014 donor survey found that about half of respondents consider the tax benefits when they donate. For high-income households, the percentage climbs to 76 percent. If fewer taxpayers claim the charitable deduction in the future, then their gifting habits will hinge more on their belief in the cause and less on the financial benefits.