So what an individual can do is offer to donate, say, 10% of his company to a charity. Let's say that the company did really well last year so that guy can easily find an accountant to say that 10% is worth $10M. So the guy has a $10M tax deduction he can use as he sees fit (subject to [1.] AMT and other sh[__], but you get the point). The guy also knows that last year's performance was a blip and if he repeated that 10% donation this year, he'd only get a valuation of $5M. [2.] In effect he's got an extra $5M from the valuation.
What's AMT? Alternative Minimum Tax?
I don't understand embolded sentence #2. How's it true? Last year, 10% of his company = $10M, as "a blip". So this higher valuation didn't originate out of nowhere?
This year, 10% of his company < $10M. So he can still exploit donations to save tax, though a lower amount?