Why Charities Aren’t Voicing Opinions About the Estate Tax

When Obama proposed a cap on the value of itemized deductions at 28%, the philanthropic sector strongly urged against doing so, noting that this would cause a drastic decrease in charitable contributions. As I previously mentioned, the lack of an estate tax in 2010 may cause a similar reduction in charitable giving. So why hasn’t the philanthropic sector voiced its opinion about the estate tax? Some possible reasons are below:

• Maybe philanthropies are counting on the reinstatement of the tax next year at a higher rate
• Maybe philanthropies think that the uncertainty for only one year will prevent people from changing their charitable contributions currently designated in their estate planning documents
• Maybe philanthropies felt more comfortable voicing their opinions when it meant a tax cut rather than a tax increase

See Bob Williams, Philanthropy and the Estate Tax, Tax Policy Center, July 19, 2010.