This report examines the role of the estate tax in an individuals decision to bequest money to charities. Theoretical and empirical evidence suggest that the elimination of the estate tax will cause significant reductions in charitable giving to nonprofit organizations. In 2001, the repeal would have meant a loss between $3.6 and $6 billion in bequests. In addition, repeal would have meant an additional $5 billion loss of giving during the lifetime of people subject to the estate tax. The total annual loss of charitable giving would thus be approximately $10 billion per year. Finally, there are reasons to believe that losses may be greater than these estimates.

For More Information Contact:

John Irons
Telephone: 202.234.8494
E-mail: [email protected]

http://www.ombwatch.org/budget/pdf/ESTC_report.pdf