As the year draws to a close, many of us begin to reflect on ways we can give back—and there’s exciting news from recent tax law changes that may affect your generosity. The One Big Beautiful Bill Act (signed into law July 4, 2025) introduces several important new rules around charitable giving, many of which will take effect in the 2026 tax year.
A few highlights: beginning in 2026, taxpayers who do not itemize will be able to deduct up to $1,000 in charitable contributions ($2,000 for couples filing jointly). Itemizers will see a new “floor,” requiring charitable contributions to exceed 0.5% of adjusted gross income before deductions apply. And for higher-income households, the maximum deduction rate for charitable gifts will be capped at 35%, regardless of the top marginal tax rate. Together, these changes will reshape the way individuals plan their giving, making intentional stewardship more important than ever.
So what does this mean as you consider supporting your church before year-end? A few tried-and-true tips still apply: make gifts before December 31 so they count for the current tax year; consider giving appreciated assets like stock rather than cash to avoid capital gains; keep thorough records of your donations; and, where possible, consult with a financial advisor or tax professional to determine how best to structure your generosity. End-of-year giving remains a powerful way to express gratitude, strengthen your church, and plan wisely for the future.
To learn more about year-end giving strategies, contact the Foundation at development@fumf.org.