Charitable Implications: One Big Beautiful Bill

The “One Big Beautiful Bill” signed into law on July 4, 2025, dominated the nation’s headlines in the several weeks preceding and following its passage. But how does it impact your charitable giving? Among various items related to spending and other issues, the bill included a few tax provisions that may affect you and other supporters of Highland Christian School and the HCS Foundation.

Here are three key takeaways related to charitable giving.

1. Tax hikes that were expected to occur in 2026 were averted, protecting the disposable income that generous Christians have available to give. This included extending the current income tax brackets and charitable contribution limit for cash, as well as increasing the standard deduction and estate gift tax exemption.
   
2. New provisions were added that increase the tax benefits for charitable giving. This included an increase in the state and local tax deduction, a new $1,000 charitable deduction for non-itemizers ($2,000 for joint filers), a bonus $6,000 deduction for seniors ($12,000 for joint filers), and a new tax credit for cash contributions to scholarship-granting nonprofits.
   
3. Gifts of stock, business, real estate, and other assets, as well as qualified charitable distributions from your IRA, are increasingly smart giving options, particularly for high-income earners. These non-cash gifts reduce your taxable income and enable you to give more for less cost to ministry.

Download the FACT SHEET here

How do these changes impact you? What are the best giving options for your goals and situation? We’d love to tell you more! 

Contact Jodi at 219-838-0356 or by email at [email protected] to begin a conversation and get connected to the right resources!