cityboy

Second term is Bequest*T oi
The T oi is the taxes on ordinary income , which would have been charged if you had not bequeathed you bequest to a charity.
The text says that you can donate early into a tax exempt structure , so that the amount donated grows without being taxed every year.
If you wait until your are about to die , all the gains are subject to taxation and you will get less bang for your donation. Put another way you might have to donate less today , than on your death bed , to get the same bang out of your bucks

cityboy

I read the chapter , and now I understand:
The tax on after-tax income that is bequeathed to relatives while you are alive is called Gift Tax. ( I think there is an annual limit on this in US). It is charged because people might bypass estate taxes ( which are paid upon death) by gifting while they’re alive.
When you make a Gift , it is taxed at Gift Tax rate . The donee does not have to pay income taxes on the amount received ( no double taxation) . The donor pays the tax and then gets to write off income equal to the taxes paid ( by claiming a rebate) , which reduces the overall taxes .
The income is really taxed twice for the donor , when he earns it and again when he gifts it .Second time he pays , he gets a rebate