Tax policy has changed the giving landscape—and this episode explains why churches can’t lean on incentives anymore. If generosity is going to grow, it has to be formed through discipleship, not deductions.

In this episode of The Next Sunday Podcast, Jim Sheppard and Frank Bealer break down how the 2017 Tax Cuts and Jobs Act shifted giving by nearly doubling the standard deduction. As a result, far fewer households itemize (dropping from about 1 in 3 to about 1 in 10), which removed a key financial nudge that used to reinforce charitable giving, especially at year-end.

Jim and Frank walk through the real-world implications in plain language: standard vs. itemized deductions, why Schedule A used to matter for middle-class giving, and how incentives shaped behavior even when they weren’t the primary spiritual motivator. They also discuss how the “One Big Beautiful Act Bill” extends these dynamics and adds new layers—like a small above-the-line deduction for non-itemizers and a “haircut” effect that reduces deductible charitable amounts for some itemizers.

But the key takeaway is not political. It’s pastoral.

The conversation argues that tax policy changes hit undeveloped givers far harder than developed givers. And when incentives fade, what’s exposed is formation: if people were giving mostly because it “made sense” financially, the church must now disciple people toward giving as worship, not transaction.

The conversation challenges pastors and church leaders to stop assuming outside forces will work in the church’s favor and to start asking harder questions. Are we teaching generosity clearly and consistently? Are we forming hearts—or just managing behaviors? Have we unintentionally trained people to see giving as a financial decision rather than a discipleship practice?

A powerful closing section gives a pastoral starting point for conversations with people who are “out-strategizing God” with tax planning. Jim points leaders back to Scripture—inviting people to run their giving decisions through passages like Deuteronomy 14:22–23 and the heart posture of David in 1 Chronicles 29:17—so the Holy Spirit can do the work that arguments and spreadsheets never can.

This episode is a must-listen for Church leaders who want a more honest, biblically grounded approach to church giving and generosity culture in a world where tax incentives are no longer doing the church any favors.

Read the full article and download FREE white paper here: blog.generis.com/blog/from-tax-deductions-to-discipleship-part-2