Sister Jennifer’s year-end letter

Hello and Blessings for the seasons upon us. 

As I write this letter, I am listening to the new guidelines developed by HUD guiding the federal funds for homeless services that will be available. Beginning in 2026 we will lose a lot of funding.

Our funds come from HUD through the city and state and county. We will all suffer greatly. As homelessness has seen a slight decrease in persons unhoused, this will go back up and beyond the worst we have seen. There will be big shifts in how projects are evaluated and who gets included in the funding. 

It is a major responsibility of our staff to write proposals that comply with the new guidelines. We will achieve this with excellence as we always do, there will be no guarantees as to the total amount we will receive. 

The good news is that we are not totally dependent on government funds. We have dedicated and generous supporters such as you. We have many foundations that are very dedicated to the needs of homeless families especially where children are involved. We will continue to seek all possible funding on every level. I do not want to pressure you, our individual donors, but I do want to make it clear that we need your support more than ever. 

Meanwhile, we have new tax laws which may impact your giving strategy.   I’ll provide details at the end of this letter.   

Good wishes for you and your families as we see the end of 2025 and look forward to 2026!

Sister Jennifer 
Executive Director 
Los Angeles House of Ruth 

A Word about Changes to Charitable Giving in 2026 

Beginning in 2026, the new legislation (commonly known as the One Big Beautiful Bill) introduces a deduction floor — meaning only charitable gifts beyond 0.5% of your adjusted gross income (AGI) will be deductible. For example, if your AGI is $100,000, the first $500 ($100,000 x 0.5%) of gifts would not count as a deduction.

Opportunity: Many people are choosing to “bunch” or accelerate charitable contributions before year-end to maximize deductibility under current rules. Primarily by using a donor advised fund. However, with reduced Federal support many non-profits are in need of donor funds now. Any amount helps! This along with strong stock market performance, results in an opportune time to review how much you’d like to give, and which assets make the most sense.

Also consider working with a trusted financial professional. Donors may want to engage with a tax professional or financial advisor to tailor a plan that aligns with their values and goals.’

If you have a Donor Advised Fund, please designate Los Angeles House of Ruth as a recipient.