Navigating Tax Law Changes with Greater Houston Community Foundation
Whether you’ve established your charitable fund at Greater Houston Community Foundation or are simply exploring ways to give back, it’s natural to have questions about how potential changes in tax laws might impact your plans. Rest assured, our dedicated team of philanthropic advisors is here to keep you informed and to help you execute your philanthropy confidently and strategically.
Recently, you may have heard about the “Big Beautiful Bill” (H.R. 1), which passed the House of Representatives on May 22, 2025, by a narrow margin. As the bill moves to the Senate, it’s important to remember that legislative processes often involve significant revisions before any legislation becomes law. At this stage, nothing is finalized, and it’s too early to determine exactly how these proposals might affect your charitable giving.
What remains certain is our commitment to supporting your philanthropic goals. The Community Foundation is ready to work with you—whether specific provisions in the legislation are enacted—to ensure your giving strategy aligns with your values and financial needs.
Planning for Legacy Giving
Many donors include legacy provisions in their estate plans to continue supporting the causes they care about. Leaving a lasting impact helps improve our community’s quality of life for generations to come. If you’re considering an update to your estate plan, we encourage you to reach out. Our team is happy to collaborate with you and your professional advisors to craft meaningful legacy gifts that reflect your wishes and serve the community’s future.
Understanding Estate and Tax Implications
While the federal estate tax affects a relatively small percentage of taxpayers, its potential impact can be substantial, up to 40% on the value of estates exceeding certain thresholds. Currently, the exemption amount is $13.99 million per individual and $27.98 million for married couples, thanks to the provisions of the Tax Cuts and Jobs Act of 2017. The proposed legislation aims to make these higher exemptions permanent, which could influence your estate planning strategies.
If your estate exceeds these limits, including a gift to a Greater Houston Community Foundation fund can be an effective way to help reduce estate tax liability while supporting community priorities.
Supporting Charitable Giving Beyond Tax Benefits
It’s important to remember that most people give because they want to make a difference—not solely for tax reasons. Whether or not tax laws change, the Community Foundation is here to help you realize your philanthropic vision and create an impactful legacy in the community you call home. Our flexible giving options, including donor advised funds (DAF) and other vehicles, are designed to adapt to your evolving goals and the changing landscape.
Upcoming Changes to Standard Deduction and Charitable Giving Incentives
The proposed bill maintains the higher standard deduction levels introduced by the TCJA, which may result in fewer taxpayers itemizing deductions, potentially impacting charitable deduction claims. However, it also proposes a modest “above-the-line” deduction of $150 for individuals and $300 for joint filers, offering some benefit for nonitemizers. Regardless of these changes, your commitment to supporting our community remains impactful and meaningful.
Supporting Private Foundations and Local Initiatives
The bill also proposes increased excise taxes on the investment income of large private foundations, which could influence philanthropic strategies. The good news is that Greater Houston Community Foundation offers alternatives, such as donor advised funds, that provide flexible ways to support nonprofits and community initiatives without the complexities of private foundations.
We’re Here for You
So, what’s next? Legislative review by the Senate is expected to begin in June, with the process possibly extending into late summer. We will continue to monitor developments closely and keep you informed every step of the way.
Our priority is to support your philanthropic vision, regardless of legislative changes. If you have questions, want to explore new giving ideas, or establish a fund, please contact Kevin Pickett. The Community Foundation is committed to helping you make a meaningful difference—today and for generations to come.
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