Charitable giving allows for a reduction in estate taxes. Because
of this people have a tremendous incentive to contribute to charity
upon their death.
It also gives them an incentive to contribute to charities during their lifetime.
If the portion of a persons estate that is exempt from estate taxes is increased from $675,000 to $2,000,000 or $3,500,000 giving to charity would be reduced by less than 3%. Giving would be reduced much more if the Federal Estate Tax was entirely rescinded.
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The information on this page, relating to giving, is no longer viable as Federal Estate Taxes has been reinstated.
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