A provision of the One, Big, Beautiful Bill Act (OBBBA), signed into law on July 4, may increase the number of people who donate to charity. Currently, contributions made to eligible charitable organizations are only deductible by taxpayers who itemize deductions on their returns. The OBBBA creates a permanent charitable contribution deduction for non-itemizers of up to $1,000 for single filers ($2,000 for joint filers), starting in 2026. But another OBBBA provision could reduce charitable giving. The law raises the standard deduction but allows itemizing taxpayers to claim a charitable deduction for only the portion of their contributions that exceeds 0.5% of their adjusted gross income.