DSUMF Newsletter July 10, 2025
For the Fourth of July holiday earlier this month, I hope you enjoyed fireworks, family, friends, fun, and excellent food. The Fourth was also an important day for the charitable sector. President Trump signed the One Big Beautiful Bill Act (OBBBA) on that day.
While we are still reading and sorting through what that will mean for those who give to their churches and other nonprofits, some things have become fairly clear. That said, we always recommend you sit down and have a conversation with your own tax advisors before you make any significant financial decisions. Give them a little time, too. Everyone is trying to catch up with new changes in the law.
Some things we have read about OBBBA, though, offer both positives and negatives for charitable givers:
- One positive for those who do not itemize their income tax deductions is that there will be an above the line deduction – we “think” beginning for 2025 tax returns – for $1,000 (single filers) and $2,000 (married filers). That’s good news for the 91% of Americans who do not itemize deductions on their tax returns. It is hoped that this provision may allow or encourage more charitable gifts.
- One potential negative is the new floor on adjusted gross income of 0.5 percent for charitable deductions for those who do itemize deductions.
There is still much to learn and sift about the new legislation. Even then, how it plays out with individual donors may take a year or two to understand. Regardless, we will pass along information as we learn it.
If you would like us to do a presentation for your church, let us know. We are starting to schedule for Fall and would be delighted to customize a presentation either on the new tax law, estate planning, or wise giving. Meanwhile, enjoy the summer and stay out of the heat.
Blessings,
Anne Green
Executive Director
602-798-8202
agreen@dsumf.org