Information For Donors
What is the first step?
Make sure you have a will. Without one, your estate - your property, money and personal belongings - will be distributed according to state laws. Charitable causes do not figure in the state’s plans. Regardless of your wishes or those of your loved ones, not having a will means you lose control over your estate after death. Also remember that everyone should have a will, no matter the size of one’s estate.
How do I include charitable causes in my will?
To be certain that a group or organization receives your gift, you should state your intentions in your will. Contact your attorney. Your attorney, financial planner, accountant, insurance agent or trust officer will respond to your request to leave a gift in your will to a local nonprofit organization. Not only will your professional advisors be able to help ensure that you receive the maximum tax benefits allowed for your gift, but you will be assured that the causes you believe in receive your support beyond your lifetime.
You may also want to contact the nonprofit organizations or groups that are of interest to you. Many have a planned giving officer who can help walk you through the process of creating your legacy. Others may assist you in selecting an appropriate professional advisor.
Do I need an estate in order to leave a gift?
Not at all. An estate is simply a word used to describe any property, money or personal belongings you may have at the time of your death. Most people leave an estate when they die, even though they may not have a great deal of wealth. Often, small amounts can make a big difference, and your example may also encourage others to do the same.
In addition to money, your gift may also include property, personal belongings, stock or a life insurance policy. Whatever you decide to leave, no matter the size of the gift, it can help support the causes that are important to you.
Do I have to include my wish to leave a gift to a specific organization in my will?
To be certain that the group receives your gift, you should state your intention in your will or a codicil to your will. Without a will, you lose control over your assets after death. Your property and finances are settled according to state laws, whether or not they coincide with your wishes.
Do I need to tell the charity that I’ve made a gift?
It’s up to you. Charities often like to know in advance so they can recognize your generosity. They may also tell you about specific opportunities for giving and name recognition. But some donors wish to remain anonymous, and that’s okay, too.
May I leave a legacy in honor of a special person or for a specific purpose?
Absolutely - it’s a wonderful way to recognize someone who has made a difference in your life or a cause that has significantly impacted you or your family. You may want to fund a scholarship, medical research, a new wing for your place of worship or any number of other specific purposes. Just let your professional advisor know your wishes.
How do I express my bequest?
A bequest may be made through a will or through a living trust, and should be directed as follows: to the [charitable organization], a not-for-profit corporation with its principal offices located in [city], [state] for the use and benefit of the charitable organization as defined herein [specific use] or [for the general use and purposes of the charitable organization.
A bequest may be of a specific sum, a percentage of the donor’s estate, or the resident of the estate. A bequest may consist of cash, securities, life insurance proceeds, real estate and other property.
What is a codicil? Why use one?
A codicil is an amendment to a will. It is a revocable document. For this reason, some people utilize a codicil because there is often only a limited cost and it can be changed more easily than some more common wills. An attorney should always be consulted to assure that the codicil states our wishes and is not in conflict with other provision of your will. Although a codicil may be used for other estate planning purposes, it is often a convenient means to incorporate a testamentary charitable gift to one or more charities.