Estate Tax Changes May Crimp Charitable Giving

As nonprofits take in holiday gifts, some worry that one key source of their funding—bequests from estates—could get squeezed. The tax law signed by President Barack Obama on Dec. 17 cuts both the estate tax rate from pre-2010 levels and slashes the number of people subject to it. That makes it far easier for wealthy families to pass on money tax-free to their heirs, which could mean reduced funds for charities. Previously, such groups already enjoyed tax-free gifts.

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