Estate tax reduction could put nonprofit fundraising at risk
December 20, 2010
Nonprofit financial management
teams may soon be a bit busier, thanks to newly-passed legislation from Congress.
Last week, lawmakers voted to approve a new tax deal, lowering estate tax rates from 2009 and extending benefits for donors who tap into their retirement accounts to make charitable contributions. However, not all in the nonprofit fundraising world are happy with the news.
Independent Sector, a coalition of foundations and charities, argued that a tax break for the wealthy would spur them to give less rather than more, the Chronicle of Philanthropy reports.
Diana Aviv, president of the group, wrote on her Twitter feed that the legislation would mean "a huge loss of revenue from many who will keep estate-tax benefits themselves and not give to charity."
The new measure lowers the estate tax to 35 percent. If lawmakers had failed to act, that rate would have jumped to 55 percent for individuals worth more than $1 million.
The House approved the bill 277-148, with the Senate passing it earlier with a vote of 81-19.