Tax benefits are a notable “side effect” of philanthropy (in addition to the satisfaction of leaving the world a better place). Subject to various limits not discussed here, a deduction is allowed that can reduce a donor's income tax. Indeed, that generous tax deduction is one of the benefits of being a U.S. taxpayer.
However, what the Code giveth, the Code can take away as well. Recent case law and Internal Revenue Service audit activity has reminded us that there are specific condit