[brent_noorda]

No organization should be tax-exempt (not religions, not charities, not foundations), and no donations to such organizations should be tax exempt. Tax exemption takes money from the one democratic charity (our government) that supports vastly more than any other, increases undemocratic amounts of influence among the wealthy, and leads to financial shenanigans such as those we see here withe the LDS hoard. I've been in position to witness all of this via my parent's wealth distribution (almost entirely to charities, starting with 50% to LDS church).

[starkd]

The state is not the only means by which a society conducts charity. It needs to encourage charitable giving through various avenues.

[brent_noorda]

Does the state need to encourage charitable giving, though?

Would a person stop donating $1000 of their expendable wealth to their favorite cause (e.g., hunger, cancer, cloning hitler, whatever) if that $1000 donation no longer reduced their taxes by $200 (for example)? If so, what kind of person would do that? Probably not the kind of person who ever donates to anything in the first place.

Worst case, if there were no more tax-deductible charities: that person would pay the $200 taxes and only donate $800 (instead of $1000) to their favorite cause. Best case: Megawealthy would no longer leave $20 billion to their favorite cause (be that their dog, the LDS church, their love of oil drilling, or whatever), but would pay $5 in estate taxes and only have $15 billion leftover for their love of oil drilling (or whatever be their whim).