Merry Christmas to all of you! This joyous season reminds us of the hope and love brought into the world through the birth of Jesus Christ. May this time be filled with peace, joy, and the warmth of cherished moments with loved ones. Thank you for your continued support and faith in our journey. Wishing you a blessed and hopeful Christmas!

Below is an introduction of our new treasurer, as well as an update from the IRS regarding charitable giving changes due to the One Big Beautiful Bill. Please take a moment to read it before the end of the year, and contact your tax adviser with any questions.

We hope you enjoy time with your loved ones this holiday season. 

Warmest regards,

Hope First Family Resource Center

Gigi Owen, Deann Anderson, Karen Carlson, Jennifer Federocko, Tara Gallagher, Patrice Gerber, Randy Hunter, and Janene Thweatt.

Finance Introduction and Update:

New tax information for donors:

Starting in 2026, the newly enacted One Big Beautiful Bill increases incentives for charitable giving by making permanent a giving deduction for non-itemizers who take the standard deduction. (90% of tax filers don't itemize.) 

Non-itemizers can claim a $1,000 "above the line" deduction for charitable cash donations for individuals ($2,000 for married couples). 

However, itemizers will face a 0.5% giving "floor" of adjusted gross income (AGI), which must be met before getting a tax deduction. For example, a person with $300,000 AGI who donates $3,000 annually would not get a tax deduction for the first $1500 ($300,000 x .005). Similarly, in 2026, corporations also face a "floor" of 1% of their taxable income to qualify for a tax deduction. 

Because of these changes, tax advisors are urging donors to consider larger gifts by December 31, 2025, to a donor-advised fund (DAF) to enjoy the full charitable tax deduction in 2025. DAFs are growing in popularity and act like a "charitable giving checkbook." A DAF can create a giving account for a donor, which is funded by the giver's cash donations, stock, real estate, or even a donation of a business. The DAF provides the tax-deductible receipt to the donor for these gifts. 

These funds can grow in an account, and the donor can recommend grants from the account to designated charities and determine the frequency of these grants (monthly, annually), which could be disbursed over multiple years to their charities. The donor could receive the tax deduction under the current 2025 rules but distribute the grants to the designated charity in 2025 and 2026.

Options for Giving

Act Now to Reduce 2025 Taxes:

• Open a donor-advised fund (DAF) account now for a larger gift under the 2025 rules, which can be distributed in 2025 and subsequent years (but tax receipt is for 2025). A donor may want to fund a DAF account by giving appreciated stocks, bonds, or mutual funds to limit tax exposure. 

• If over 70½ years of age, a donor may give from an IRA as a Qualified Charitable Distribution (QCD) without increasing taxable income. QCDs are not affected by the 0.5% AGI floor or the deduction cap for cash donors. QCDs offer several tax benefits and don't need to be itemized like cash gifts.

• National Christian Foundation (NCF) can establish a Charitable Gift Annuity (CGA) for persons aged 50 years and up. This is a combination charitable gift and annuity, which will provide fixed annuity payments for the rest of one's life and support the charity of choice with grants. The CGA can be funded by cash, stock, or IRAs. NCF has a proven track record with many ministries in creating CGAs. 

• Estate planning ensures that a donor’s wishes for Christian financial stewardship continue in their will or trust. A donor can determine a specific dollar amount, a percentage of their estate, and/or designate specific assets (e.g., stock shares) for distribution to charities. NIFLA partners with the National Christian Foundation, another 501(c)(3) organization, which is a leader in philanthropic asset management. NCF assists donors with charitable giving strategies and can manage more complex donations, such as gifts of stock. 

Consult your own financial advisors to see which options best suit your circumstances.