As the end of the year approaches, many of us begin thinking about our taxes and how we can save money or lower our tax burden. This year, there is a new piece of legislation that offers exciting opportunities for tax planning, and it could help you give more generously to causes that are important to you, like missions. This legislation is called the One Big Beautiful Bill Act, otherwise known as OBBBA, and it includes several provisions that can benefit Christians looking to give more to the mission field.
In this article, we will walk through some key tax changes in the One Big Beautiful Bill Act and offer suggestions on how you can use these changes to plan for the end of the year. Specifically, we will focus on the increased State and Local Tax (SALT) deductions, the new charitable giving deductions, and some other ideas, and how these can be used to help support missions.
What Is the One Big Beautiful Bill Act?
The One Big Beautiful Bill Act is a new law that includes several important changes to the U.S. tax code. One of its main goals is to provide tax relief to taxpayers, especially those who give to charitable causes or who live in states with high taxes. It includes new benefits for Christians who are passionate about supporting mission work. Let’s break down some of these key changes and how they can help you.
Increased SALT Deductions Up to $40,000
One of the most significant changes in the One Big Beautiful Bill Act is the increase in the State and Local Tax (SALT) deduction. Prior to this bill, taxpayers who itemized their deductions could only deduct up to $10,000 in SALT (which includes state and local income, sales, and property taxes). This cap limited the ability of people in high-tax states to benefit fully from this deduction.
With the new bill, the SALT deduction limit has been raised to $40,000 for married couples filing jointly. This means if you live in a state with high taxes, you may be able to deduct more from your taxable income, which could lower your overall tax bill.
Why Does This Matter for Missionaries and Giving?
If you live in a state with high taxes and are passionate about supporting missions, the increased SALT deduction can free up more of your income. By reducing your taxable income, you may end up owing less in taxes and, therefore, have more funds available to donate to mission organizations. This is a great opportunity to increase your support for missions both locally and internationally.
For example, if you receive a significant SALT deduction, you might use the extra savings to increase your donation to mission trips, mission organizations, or to support missionariesdirectly. Giving to missions can be one of the most impactful ways to serve God and help spread His message, and the new SALT deduction makes it easier to do just that.
Increased Charitable Giving Deductions
Another key part of the One Big Beautiful Bill Act is the increase in charitable giving deductions. In the past, you could only deduct a certain percentage of your income if you donated to charity, but the new law makes it easier to deduct more for charitable gifts.
For taxpayers who choose to itemize their deductions, the new law allows you to deduct up to 60% of your adjusted gross income (AGI) for cash contributions to qualified charitable organizations. This is a big increase from previous years, where the limit was 50%. This change encourages even more giving to churches, missionaries, and nonprofit organizations that spread the Gospel.
For those who may not itemize, the One Big Beautiful Bill Act also allows for above-the-line deductions for charitable contributions. This means you can take a deduction for charitable donations even if you do not itemize your deductions. This is a great way for people who usually take the standard deduction to still benefit from giving to charity.
How Does This Help with Missions?
Christians often feel led to support mission work, whether it’s through donations to mission organizations or supporting individual missionaries. With the increased charitable giving deduction, it’s easier than ever to make a significant impact. Whether you give directly to your church’s mission fund, sponsor a missionary, or contribute to a global organization working to spread the Gospel, the tax benefits can make a huge difference in your ability to give.
If you want to support a missionary or mission project but were unsure about how much to give, the new rules may help you feel more confident in your decision. By reducing your taxable income, you can give more while still paying less in taxes. It’s a win-win situation!
How to Maximize Your Giving
Now that we’ve covered the new tax changes, let’s talk about how you can maximize your giving to missions before the year ends. Here are a few strategies to consider:
1. Consider Giving Stock or Other Assets
Give Before December 31st
To take advantage of these tax benefits, you need to make your charitable donations before the end of the year. The IRS requires that donations be made by December 31st to count for that year’s tax return. This means now is the time to plan your donations to missions.
2. Consider Giving Stock or Other Assets
If you have appreciated stock or other assets, consider donating them to charity instead of cash. When you donate appreciated assets, you don’t have to pay capital gains tax on the increase in value. This can be a significant tax-saving strategy, and it also allows you to give more to missions without sacrificing your financial resources.
3. Bunch Your Charitable Donations
One strategy that many taxpayers use is “bunching” charitable donations. This means you make larger donations every other year instead of smaller donations every year. By doing this, you may be able to itemize your deductions one year and take advantage of the charitable giving deduction, while still giving to missions every year. Speak to a tax professional about how this might work for your specific situation.
4. Direct Your Giving to Mission Projects
Many mission organizations have specific projects that need funding. You can direct your giving to these targeted projects to make sure your donation is being used for something you are passionate about. Whether it’s a church building project in another country or funding for a missionary’s travel expenses, making sure your gift is put toward something specific can help you feel more connected to the mission field.
5. Set Up a Donor-Advised Fund
If you want to give more efficiently, consider setting up a Donor-Advised Fund (DAF). A DAF allows you to make a contribution now, take the tax deduction immediately, and then distribute the funds to your chosen charities (like mission organizations) over time. This can be especially helpful if you want to make a large donation but spread it out over several years.
Other Year End Ideas
- Harvest Tax Losses
- Sell investments at a loss to offset gains in your portfolio; up to $3,000 in excess losses can also reduce ordinary income for the year.
- Review any tax-loss carry forwards that may help with your 2025 taxes.
- Accelerate Deductions and Defer Income
- Pre-pay deductible expenses (such as medical bills, state taxes, or charitable donations) to maximize itemized deductions.
- Where appropriate, defer income (bonuses, self-employment receipts, or year-end invoices) into next year to reduce this year’s taxable income—unless you anticipate a higher tax rate in 2026.
- Maximize Retirement Plan Contributions
- Contribute to IRAs, 401(k)s, and HSAs before the deadline to reduce taxable income; for IRAs, you may have until April 2026 to count contributions for 2025, but 401(k) contributions must be made by December 31.
- Consider Roth IRA conversions, which may be especially attractive if you expect higher future tax rates.
How Giving to Missions Benefits You
When you give to missions, you are not just impacting the lives of those receiving aid. Your own life is changed as well. Jesus teaches in Acts 20:35, “It is more blessed to give than to receive.” Giving to missions can strengthen your faith, provide a sense of purpose, and connect you more deeply with God’s work in the world.
By taking advantage of the tax benefits from the One Big Beautiful Bill Act, you are able to maximize your ability to give. The more you give, the more you participate in God’s work of spreading the Gospel, helping the needy, and bringing hope to those who need it most.
Conclusion: Make an Impact
The One Big Beautiful Bill Act offers a unique opportunity to give generously to the mission field. With increased SALT deductions and charitable giving benefits, Christians have a powerful tool to not only reduce their tax burden but also to make a real difference in the world. As the year ends, now is the time to plan your giving and consider how you can support missionaries, mission organizations, and mission trips.
This is your chance to be a part of something bigger than yourself. By giving more to missions, you can help spread the message of Jesus Christ and make a lasting impact on the lives of people around the world.
So, as you plan for the year ahead, remember the words of Jesus in Matthew 6:21: “For where your treasure is, there will your heart be also.” Let your treasure be in missions, and let your heart follow. The One Big Beautiful Bill Act is here to help make your giving even more impactful—take advantage of it and make a difference today!
Please note: All charts and numbers are for illustration purposes only. Accuracy is neither warrantied nor implied. We are not attorneys or tax advisors. This information is educational only. Not to be considered as advice or recommendations. It is imperative that you consult with a tax advisor and/or attorney when considering any of these concepts. In addition, it is critical that the attorney, tax advisor, and financial advisor are knowledgeable and practiced in these areas.If you would like help finding such an advisor, we will be glad to introduce you to an experienced planner with your best interest in mind. Please give us a call at 1-800-522-4324
