• The federal estate tax provides strong incentives to people to donate from their estates to charitable organizations and thereby encourages the donation of significant revenues to support services and programs that are vital to sustaining healthy communities and the well-being of Americans of all ages.
  • The Congressional Budget Office* found that the estate tax leads affluent individuals to donate far more than they otherwise would, because such donations sharply reduce estate tax liability.
  • These contributions are needed more than ever in these difficult economic times.
• Giving through charitable bequests totaled $28.4 billion in 2008 – 9% of total giving and contributions from philanthropic foundations, many of which were created through bequests accounted for another $32.65 billion in 2008.
• Any further weakening or repeal of the estate tax from 2009 levels would diminish an important source of revenue for the charitable community by making charitable bequests more expensive, thereby reducing contributions and diminishing our ability to address the needs of the individuals and communities we serve.

Who is Subject to the Estate Tax?

• Fewer than 3 in every 1,000 estates were subject to the estate tax in 2009.
• Extending the estate tax at 2009 levels would shield virtually all farm and small businesses from tax liability.
  • A Congressional Budget Office study found that of the few farms and small businesses that would owe an estate tax liability in 2009, an overwhelming majority would have significant liquid assets to pay the tax without touching the farm or business.