Hmm, I think you have some wrong ideas about our tax system. A tax deduction doesn't make it free money. First, you are giving up $10 million to the school.

Hmm, I think you have some wrong ideas about our tax system. A tax deduction doesn't make it free money. First, you are giving up $10 million to the school. The tax deduction gets you about $3 million (more or less) in tax savings. The donor still gave up a net of $7 million and the school and students still get tremendous benefit. (The precise amounts will vary with tax rates and state, but the point is that a huge portion of the donation is still out of pocket.) The wealthy person is not "pocketing" anything.