June 12, 2008 | Read Time: 1 minute
A study of estates by the Internal Revenue Service shows that in 2004 — the most recent tax year for which information is available — people who died and left larger estates were more likely to make a charitable bequest than those with smaller estates and, on average, gave away a larger portion of their gross estates to charity.
In 2004, 8,722, or nearly 21 percent of all federal estate tax returns filed with the government, included bequests in cash and other assets to charitable organizations. The bequests added up to $17.8-billion, which was equivalent to 9.6 percent of the total gross estates of all donors.
About 16.5 percent of those with gross estates of $1.5-million to $2-million reported making charitable bequests, the IRS said. This percentage increased steadily with estate size, with 44.2 percent of estates of $20-million or more reporting bequests.
Figures from the revenue service show that the charitable recipients of bequests varied significantly by size of estate.
Estates of $1.5-million to $3.5-million left a much smaller share of bequests — 13.6 percent — to private foundations, community funds, and other groups that promote philanthropy and volunteerism than the average estate. Estates of this size left significantly larger shares of bequests to educational and religious organizations than the average estate.
Medium-sized estates, of $3.5-million to $5-million, reported a distribution of bequests similar to small estates, the IRS said, although they left a lesser share to religious organizations and a greater share to groups that promote social services; arts, culture, and humanities; and animal welfare.
Estates of $5-million or more left most of their bequests — 70.2 percent — to private foundations and other groups that promote philanthropy. About 10.5 percent of bequests from these estates went to educational organizations.
The IRS report is available on the tax agency’s Web site.
