It does count as taxable income. A charitable donation can only offset a max of 50% of the donor's total income for public charities, or 30% of total income fo

It does count as taxable income. A charitable donation can only offset a max of 50% of the donor's total income for public charities, or 30% of total income for a donation to a private foundation charity,which is the type of charity described in the OP sample. And of course, if you get to the point of donations and other deductions resulting in $0 tax, you get hit with AMT, which frequently results in a higher tax than you would owe if you had never made any deductions at all.