Empowering Change: How the One Big Beautiful Bill Act Revolutionizes Church Outreach and Fundraising

By Sarah Motiff, Converge Great Lakes Accountant

With the passage of the One Big Beautiful Bill Act (OBBBA) on July 4, 2025, several significant changes have been implemented that may impact churches and their communities. In this article, we summarize key provisions and discuss their implications for church operations and outreach efforts.

But first, let’s review what we have already shared with you. In our July newsletter, the OBBBA includes a provision that exempts federal income tax on overtime pay for millions of workers. This change affects how churches track and report overtime for their staff. For full details, please refer to our July 2025 article here.

The August newsletter detailed how OBBBA has redefined tax deductions for charitable contributions. This exciting update presents new opportunities for churches to enhance fundraising efforts and engage with donors more effectively. To read more, click here.

In this issue we outline several additional provisions of OBBBA that may impact your church’s operations going forward:

Savings Accounts for Minors 

This new provision introduces tax-favored savings accounts for minors, allowing contributions of up to $5,000 annually. Additionally, a federal pilot program will provide $1,000 for each newborn from 2025 to 2028. While detailed guidelines are forthcoming, churches may consider offering financial literacy education to families regarding the setup and use of these accounts. If you're thinking of launching such a ministry, please consult legal counsel before implementation. Read more about these savings accounts here!

Medicaid Eligibility Redeterminations

Beginning 2027, Medicaid recipients will be required to reverify their eligibility every six months. This could lead to an increase in benevolence requests within the church community. We recommend considering expansion of your Benevolence Fund in your 2027 budget.

Rural Health Transformation Program  

OBBBA provides federal funding to improve healthcare access in rural areas through grants and technical assistance. Churches in these communities may be eligible to apply for funding to support various health initiatives, including clinics, health education, and mental health services. This opportunity could significantly enhance the reach and impact of rural ministries.

Expanded SNAP Work Requirements 

New changes to SNAP regulations will tighten work requirements for able-bodied adults without dependents, narrowing food assistance eligibility. Consequently, churches may experience an increased demand for food pantries, grocery assistance programs, and community meals. It is vital that those managing these programs stay informed about eligibility documentation and comply with state and federal reporting requirements.

In light of these significant changes brought about by the One Big Beautiful Bill Act, it's essential for churches to stay informed and proactive in adapting their operations and outreach efforts. By embracing new opportunities for fundraising, enhancing community services, and preparing for potential increased demands, churches can strengthen their support for congregants and their communities. 

Better Together, 

Sarah Motiff

Reference: Church Law & Tax