Top States for Charitable Contributions in Wills and Trusts

Charitable contributions in wills and trusts are a vital source of funds for charity organizations and non-profit companies. These organizations and the money that sustains them are in turn important parts of our economy; Employees of non-profit agencies make up 7% of the American workforce, and over 83% of donations to these groups come from private donors.

Who is giving the most? According to statistics compiled by LegalMatch.com intake reports since 2006, the following states report the highest numbers of charitable contributions in estate documents:

1. California
2. Texas
3. New York
4. Illinois
5. Virginia
6. North Carolina
7. New Jersey
8. Ohio
9. Florida
10. Georgia

Charitable contributions in wills and trusts account for billions of dollars in much needed funds every year. Considering how important these contributions are, only a crazy person would want to reduce this amount, right? Well the crazy people have won, because in 2010 the Estate Tax will be repealed.

How are these related? Charitable contributions in wills are largely influenced by their generous tax benefits. Remove the tax incentive and you remove the motivation for generous giving. One study estimated that if the Estate Tax is allowed to die out next year, charitable contributions will be reduced by almost $13 billion. That $13 billion funds employees of non-profit organizations and needed social services in impoverished areas. Perhaps more importantly it does it with private money, not government funding. Pulling the rug out from under these organizations means the government (and therefore you and me) may wind up footing the bill.

In addition to problems associated with a small amount of people hoarding a massive amount of wealth, eliminating the estate tax also shifts the burden for important social services elsewhere. It is ironic that those who seek more private enterprise in areas of social services would sponsor something that lessens private giving and increases the need for government assistance. Why is the side deriding increasing government spending only making it more likely that the government will wind up spending more of our money?