Investing in Our Community: A Call to Action for a New Era of Giving

By Laura Moody, Founding Partner - Purpose Possible 

Published in Rough Draft Atlanta - September 16, 2025

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The "One Big Beautiful Bill" (OBBB), signed into law in July, will usher in a new era for corporate giving, with implications that will ripple throughout our community. While the legislation may be intended to generate tax revenue, it presents a significant challenge to the vital work of nonprofits in Atlanta and across Georgia.

Georgia's nonprofit sector is a powerful economic force. With more than 37,000 nonprofit organizations, the sector employs over 576,000 Georgians, making it a top-three employer in the state. These organizations, from major hospitals and universities to local arts centers and human service providers, generate billions in revenue and are essential economic infrastructure, not just a charity. For example, the nonprofit arts and culture sector in Georgia alone generates over $1.27 billion in economic impact and supports nearly 20,000 jobs.

Nonprofits fill crucial gaps that neither the private sector nor the government can fully address. They are on the front lines, providing services such as job training, healthcare, and food assistance, which are necessary to a healthy and productive workforce. For instance, the Midtown Assistance Center provided over $700,000 in emergency assistance in a single year, preventing evictions and utility disconnections for families in crisis.

Starting January 1, 2026, the OBBB introduces a new 1% floor for corporate charitable deductions. This means companies must now donate at least 1% of their profits before they can claim any tax deduction for their giving. This change is projected to cause a substantial decline in corporate donations, with one analysis estimating a loss of around $4.6 billion in 2026 alone. 

The new rules may also lead to "bunching" behavior, where companies make large, infrequent donations to meet the deduction threshold, leaving nonprofits to face unpredictable "feast or famine" funding cycles.

To ensure the continued health of our nonprofit sector, both business leaders and community members must take a proactive approach.

Companies should:

• Exceed the Floor:  While the tax floor is a new consideration, remember that tax treatment isn't the only motivation for corporate giving. Good corporate citizenship is good business because it elevates public image, boosts employee engagement, and builds connections with influential stakeholders. So, how can companies not only meet but exceed the 1% floor to ensure a lasting, positive impact on the community?

• Be Strategic: Move beyond a reactive approach to philanthropy. Consider reclassifying some giving as business expenses, like marketing sponsorships, workforce development, or employee retention.

• Utilize Foundations: Leverage corporate foundations and donor-advised funds to maintain a consistent giving schedule, smoothing out the "bunched" contributions to ensure a reliable flow of support for your partners.

• Consider Executive Giving: For smaller businesses, it may be more tax-advantageous for executives to increase their personal giving to meet the company's charitable goals.

• Power Over Policy: Engage with state legislators to lobby for greater public funding to support these essential services that fill the gaps left by the private sector and government. Leverage your power and presence to be in "the room where it happens," in spaces where nonprofits can't.

For Nonprofits:

• Start Talking Now: Reach out to your corporate partners today to form a plan for their continued support and partnership.

• Show Your Impact: Clearly articulate the non-financial value you bring to corporate partners, such as an engaged workforce.

• Build Relationships: Cultivate deeper relationships with business partners, working together to address community needs in innovative ways.

The OBBB presents a pivotal moment for corporate giving in our community, but we have the opportunity to turn a challenge into a catalyst for change. By embracing a proactive and strategic approach to philanthropy, we can ensure that our city and state not only survive but also thrive. We hope the corporate community comes together to support these vital needs in a significant way that can be celebrated at next year's CVC of Atlanta IMPACT Awards.

Busted! The Overhead Myth by Laura Hennighausen, Director of Funder Relations

It’s November. The leaves are turning, the days are getting shorter, and you know what that means in the world of fundraising - the return of people on social media crusading against making year-end donations to nonprofits with “high overhead”.

The Overhead Myth, a name coined by GuideStar, BBB Wise Giving Alliance, and Charity Navigator in 2013, is the misguided notion that nonprofit effectiveness can be measured in part by the ratio of budget dedicated to general operating expenses including rent, utilities, benefits, and *gasp* salaries. Believers declare that they want to see their donations going to directly serve a charity’s clients or programs. But how do they imagine the work actually happens?

General operating support dollars are the most important to a nonprofit and often the hardest to come by. Operating support funds what is unsexy but necessary - how can a shelter or art gallery operate if there are no lights to turn on, or no one to turn them on?

It’s important for nonprofits to be honest about what it takes to accomplish your work in order for the public to truly understand the need. I am a big proponent of telling our clients to ask for what they really need - don’t adjust your fundraising goal so it sounds less intimidating, be transparent. And don’t subscribe to the idea that you have to keep your overhead as low as possible to be fundable. We must all advocate for competitive salaries in our industry in order to retain top talent and touting how little we pay the people in charge of achieving our missions does nothing to address these inequities.

We should be promoting how great general operating dollars are. Donors often ask what is most needed, and this is it! Nonprofits need funding that is flexible and can be used to support these most essential needs. And why shouldn’t an Executive Director or Education Coordinator make a reasonable salary? Without their time and talent, these life-saving programs wouldn’t happen in the first place.

So this end-of-year giving season if you see someone posting on social media saying not to donate to a certain nonprofit because of overhead, speak up! Vu Le has some great suggestions on How to deal with uninformed nonprofit watchdogs on his NonprofitAF blog.

We can all do our part to educate donors and advocate for what we really need. 

4 Ways Nonprofit Leaders can De-Stress in Q4!

It's that time of year- the time nonprofit leaders and their teams dread most... End of Year Giving Season! All you want to do is enjoy the holidays with family and friends, but there's this nagging, stressful task that you put off and put off until you just crank out the same old messaging as the year before. It's a chore for you and a bore for your audience.

So this year, give yourself a much-needed break, and let us take on this most maligned of mailings from start to finish. This includes GA Gives Day and/or your End of Year Campaign.

We have packages for organizations of all shapes and sizes. And if your goal is less than $10k, we have a special offering especially for you.

Bookings for 2022 have closed.
Check back with us in 2023 for new offerings!!!