Having worked for a very wealthy man for more than 18 years, I spent many hours in estate planning and tax discussions sessions with expert tax attorneys and accountants. U.S. tax laws actually help create a physical manifestation of the spiritual principle that giving is receiving by providing material world tax benefits that can offset as much as 85% of the amount given, resulting in a cost of only 15 cents on the dollar.

While anyone considering a substantial gift to any non-profit entity should consult their own tax advisors, here is an example of a gift of appreciated property:

Imagine a sale of stock or real estate with a low cost basis, something that cost $10,000 now being sold for $110,000 (a portion of ANY property being sold can be transferred through escrow by preparing a deed to the non-profit foundation of an undivided interest, then another from the non-profit to the buyer. The same thing can be done by instructions to a stock broker for shares of stock). The gain on such sale would be $100,000, resulting in a capital gains tax of $25,000, and net sale proceeds of $85,000

Assuming the seller is in the maximum tax bracket of 39.6% for ordinary income, the $110,000 donation would save $43,560 in income taxes, so the net after tax cost of the gift would only be $41,440 ($85,000 minus $43,560), or less than 38 cents per dollar given.

If the gift were not made, and the net $41,440 remained in the person's estate and was taxed at the maximum 60% rate at death, another $24,864 in taxes would be due, leaving net proceeds to the heirs of only $16, 576 from the $110,000 sale, or barely $.15 per dollar.