On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, ushering in sweeping changes to the U.S. tax code. Its implications for charitable giving—especially within Catholic communities—are already being felt across Northeastern Wisconsin.
As the philanthropic landscape shifts, the Catholic Foundation for the Diocese of Green Bay, Inc. remains committed to helping donors navigate these changes while continuing to support the Catholic ministries and missions that matter most.
What’s in the Bill? Key Provisions Affecting Catholic Donors
The Bill introduces several tax-related changes that directly impact charitable giving:
- Above-the-Line Deduction for Non-Itemizers
Beginning in 2026, taxpayers who take the standard deduction can also deduct up to $1,000 (or $2,000 for joint filers) in cash donations to qualifying charities—including churches and the Catholic Foundation. [churchlawandtax.com] - New Limits for High-Income Donors
Itemized deductions for charitable gifts are now capped at 35% of adjusted gross income (AGI), and can only be claimed if they exceed 0.5% of AGI. This may influence how major donors structure their giving. [news.dioce…tucson.org] - Permanent Extension of the 60% AGI Limit for Cash Gifts
Donors can continue to contribute up to 60% of their AGI in cash to qualifying charities, preserving a key incentive for large-scale giving. [news.dioce…tucson.org]
Local Impact: What This Means for the Diocese of Green Bay
The Catholic Foundation for the Diocese of Green Bay is focused on how these tax changes affect donor behavior and parish support.
The Foundation has long served as a trusted partner in helping donors make meaningful, tax-efficient gifts. With the new above-the-line deduction, middle-income families now have a greater incentive to give, even if they don’t itemize. This could lead to increased participation in parish campaigns, endowments, and legacy giving.
For high-net-worth donors, the new caps may prompt a reevaluation of giving strategies. The Foundation is prepared to assist with tools like donor-advised funds, IRA charitable rollovers, and estate planning to ensure gifts continue to make a lasting impact.
Giving Trends in Northeastern Wisconsin
Despite economic uncertainty, charitable giving in the region remains strong. Nationally, charitable giving rose to $592.5 billion in 2024, buoyed by stock market gains and increased foundation support. Locally, the Catholic Foundation continues to see growth in donor engagement and grantmaking. [theangelet…igroup.com]
The Foundation’s one by One campaign, endowments, and parish initiatives have all benefited from the generosity of Catholics in the Diocese. As we look ahead, we anticipate continued momentum, especially as donors find new ways to support the Catholic causes they love.
Looking Ahead: Stewardship in a New Era
The Catholic Foundation for the Diocese of Green Bay is committed to helping donors:
- Understand the new tax rules.
- Maximize their charitable impact.
- Support the Catholic parish, school, and ministries they love.
Whether you’re giving to your parish, funding Catholic education, or investing in vocations, your generosity is more important than ever.
Together in faith, we can continue to build a legacy of hope, service, and discipleship in Northeastern Wisconsin. Contact Josh Diedrich, Executive Director, at (920) 272-8197 or email [email protected] to learn more.
