What’s changing?
Starting in 2026, new federal tax rules will affect how much benefit you receive from charitable giving. Think of it as the government raising the bar a bit.
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First, there’s a new “entry fee” of sorts. Under the “One Big Beautiful Bill Act,” you’ll only get a tax deduction for charitable gifts that exceed 0.5% of your adjusted gross income.
For someone earning $100,000, that means the first $500 in giving won’t count toward your deduction. Your generosity still counts with God, of course — but Uncle Sam won’t recognize it for tax purposes.
Second, if you’re in the top tax bracket (currently 37%), the tax benefit you receive from all itemized deductions — including charitable gifts — will be capped at 35%. It’s not a huge change, but it’s worth knowing about.
Why this matters now
Because these changes take effect in 2026, you have a window of opportunity. If you’ve been considering a significant gift to your church or another ministry, making that gift before Dec. 31 means you’ll benefit from the current, more generous rules.
Of course, every person’s financial situation is unique, so we encourage you to talk with your tax adviser about what makes sense for you.
Beyond the checkbook: Creative ways to give
Whether or not tax laws change, there are some wonderfully strategic ways to give that many Christians don’t know about. These aren’t loopholes — they’re legitimate tools that let you be extra generous while being extra wise.
Give what’s grown
Have stocks, real estate or even cryptocurrency that’s increased in value over the years? Here’s a helpful twist: Instead of selling these assets yourself (and paying capital gains tax on the profit), you can donate them directly to your church or another ministry.
The result? You typically get a tax deduction for the full current value, you avoid capital gains tax, and because your church doesn’t pay taxes when it sells the asset, 100% of its value goes toward ministry. It’s a win-win scenario that maximizes both your deduction and the ministry’s resources.
Important timing note for stock gifts
For electronic transfers, gifts are recorded when shares are received in the charity’s account — a process that can take several business days. Financial institutions recommend initiating transfers by mid-December (Dec. 12-20) to ensure settlement before year-end.
The IRA gift (If you’re 70.5 or older)
This one’s especially powerful if you have a traditional IRA. Once you reach age 70.5, you can transfer up to $108,000 directly from your IRA to qualifying charities — like your church, the Tennessee Baptist Mission Board’s Golden Offering, camps, disaster relief or other ministries.
The benefit? This money never shows up as taxable income for you, and it typically counts toward your required minimum distributions (which begin at age 73). It’s like giving with pretax dollars.
The key word here is “directly” — the transfer must go straight from your IRA administrator to the ministry. Your financial adviser can help you set this up properly.
Important timing note for IRA gifts
QCDs must clear the donor’s IRA and be received by the charity by Dec. 31, 2025. IRA custodians often have internal deadlines earlier than donors expect, so initiating requests in early to mid-December is strongly recommended.
EDITOR’S NOTE — This story was written by Matt Tullos for Tennessee’s Baptist and Reflector.
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