Along with many other changes, the deductibility of charitable giving has been altered under the recently enacted "One Big Beautiful Bill" Act (OBBBA). I have updated some of the articles in this series based on the new tax provisions of the bill, but in this one, we'll go more in-depth about how to give wisely (and generously) under the new tax law, even if you're just getting started.

After the "One Big Beautiful Bill Act" (OBBBA) passed, most of the headlines focused on tax cuts and health insurance changes. But tucked deeper in the bill was a change in how charitable giving is treated for tax purposes, especially for those who take the standard deduction (which is most of us, in fact, over 90%).

If you're a young adult in your 20s or 30s just starting your career, these changes could work in your favor, but you may need to be a little more intentional about how and when you give.

You are familiar with the "giving" articles, which highlight the vital importance of generosity in the life of a Christian. And hopefully you also understand how giving can reduce taxable income (from the Lever #2: Taxes series). With those things in mind, let's review what's changed and how to give generously and wisely under the new rules.

The first, and perhaps most important change, is that you can now deduct some of your giving, even if you don't itemize. Starting in 2026, you'll be able to deduct up to $1,000 (single) or $2,000 (married) in charitable giving, even if you take the standard deduction.

That's a big deal. As I mentioned earlier, over 90% of us currently take the standard deduction and receive no tax benefit from our charitable giving. This change helps everyday givers like you to receive a tax benefit without having to file a complicated tax return.

To illustrate, assume that Casey is a 26-year-old marketing specialist earning $58,000 a year. She typically donates $1,200, primarily to her church, as well as a few local ministries and nonprofits, annually. Since she takes the standard deduction, she will receive no tax benefit from the gift in 2025.

Under the new law, if she donates $200 in 2025 and the remaining $1,000 on January 1, 2026, she'll be eligible for the new above-the-line charitable deduction for non-itemizers on her 2026 tax return (filed in 2027). If she's in the 12% marginal tax bracket that year, she'll save $120 (=$1,000 x .12) in taxes from the $1,000 deduction.

It's the same gift either way, with the same heart and kingdom impact, but by adjusting the timing, she can be both generous and wise. Of course, if there is an urgent need to contribute in 2025, then kingdom urgency trumps tax savings most of the time.

By the way, this deduction only applies to cash donations, not stock gifts or contributions to donor-advised funds (DAFs).

Another change will only affect you if you itemize your deductions (which I suspect is very few of you; you must have deductions totaling more than $15,750 if you're single or $31,500 if you're married). Starting in 2026, there's a new 0.5% Adjusted Gross Income (AGI) floor for charitable deductions. That means that only the portion of your charitable giving that exceeds 0.5% of your AGI will be deductible.

For example, James is a 32-year-old single electrical engineer earning $80,000 per year. He gives $4,000 annually to his church and typically itemizes his deductions, which include mortgage interest (he purchased a townhome a couple of years ago), student loan interest, and state and local taxes. Under the new rule, only the amount above 0.5% of his AGI, which is $400 (=$80,000 x .005), is deductible. So, his charitable deduction would be $3,600 (=$4,000 – $400).

That's still a substantial deduction. If James is in the 22% marginal tax bracket, he saves $792 in taxes (=$3,600 × 0.22), assuming he itemizes.

If you're landing a new job with higher pay, or receiving a significant raise or bonus, timing your giving can be a helpful strategy to maximize your tax savings. Nothing about the floor itself changes this strategy, but now timing matters more if your income fluctuates.

Consider Alese, a 29-year-old freelance web developer earning $40,000 this year. She gives $1,000 annually to a campus ministry she once benefited from. Next year, she expects to land a full-time role with a tech firm, which will double her income to $80,000. As a result, her marginal tax rate will jump from 12% to 22%.

Rather than giving $1,000 in both years, Alese could wait and give $2,000 in 2026, when her income and tax rate are higher. Even with the 0.5% AGI floor, which is $400 at that income level (= 0.005 x $80,000), the deduction of $1,600 (=$2,000 – $400) at 22% saves $352 (=$1,600 x .22) in taxes, more than she would have saved splitting the gifts.

The point? Your giving doesn't have to change; just the timing might.

One last situation: Suppose you're blessed with a windfall—an inheritance, a year-end bonus, or a significant stock gain—and you decide to make a larger charitable gift. That's great! Just remember: AGI limits still apply, which is 60% of AGI for cash gifts and 30% for gifts of appreciated stock or property.

And now, starting in 2026, you must first subtract the 0.5% AGI floor before applying the percentage limits.

Here's how it works:

Charlie, age 32, inherits $20,000 and decides to donate $6,000 in appreciated stock to his church's building fund. His AGI that year is $50,000. The 0.5% AGI floor is $250 (=$2,500 x .005). His allowable deduction is $5,750 (=$6,000 –$250). And the AGI limit for stock gifts is 30% of AGI, which is $15,000 (=$50,000 x .30).

Because $5,750 is less than $15,000, Charlie is under the limit and can deduct the full $5,750 this year.

If his gift had been larger—say $18,000—he could only deduct up to $14,750 this year ($15,000 AGI limit minus the $250 floor), and the remainder would carry forward for up to five years.

For reflection: No matter what, give out of gratitude and with grace from a gospel-centered heart. These tax tips are practical, but they're not the point of giving. We give because we've been given so much in Christ. We give to support God's work in the world, to bless others, and to loosen the grip of money on our hearts.