How to Structure a Charitable Bequest in Your Will

Why a charitable bequest matters

Leaving a charitable bequest in your will is a straightforward, flexible way to support causes you care about after you die. Compared with lifetime gifts, testamentary bequests let you retain control of assets during life while potentially reducing the taxable value of your estate at death (see IRS guidance on estate tax and charitable organizations: https://www.irs.gov/charities-non-profits/charitable-organizations and https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax).

In my 15 years advising clients on estate plans, the most common benefit I see is clarity: well-worded bequests reduce family disputes and help charities plan for future funding.

Types of charitable bequests and sample language

There are several standard ways to structure a charitable bequest. Below are common types with example clauses you can discuss with your attorney. These samples are starting points — always have a licensed estate attorney draft or review legal language.

• Specific (or Pecuniary) Bequest

• Purpose: Gifts a fixed dollar amount or named property (e.g., $50,000 or a painting).

• Sample clause: “I give and bequeath $50,000 to [Legal Name of Charity], a nonprofit organization located at [address], Tax ID [EIN, if known], to be used for its general charitable purposes.”

• Residuary (Percentage) Bequest

• Purpose: Gifts a share of the estate after debts, expenses, and specific bequests are paid.

• Sample clause: “I give [X]% of the residue of my estate to [Legal Name of Charity], EIN [if known], to be used for its general charitable purposes.”

• Contingent Bequest

• Purpose: Becomes effective only if a primary beneficiary cannot inherit (e.g., dies before you).

• Sample clause: “If [primary beneficiary] does not survive me, then [amount or percentage] shall pass to [Legal Name of Charity].”

• Gift of Specific Assets

• Purpose: Donates real estate, securities, business interests, or tangible property.

• Sample clause: “I give my shares of [Company name] (CUSIP or certificate numbers if applicable) to [Legal Name of Charity]. If the charity declines, the executor may sell the shares and distribute the proceeds to [alternate beneficiary].”

• Directed or Restricted Bequest

• Purpose: Limits how the charity may use the funds (e.g., scholarships, capital campaigns).

• Caveat: Restricted gifts can complicate administration if the restriction becomes impossible or impractical; consider a fallback instruction.

• Sample clause: “To [Charity], $X to establish the [Name] Scholarship for students from [city]. If the charity cannot administer this fund, the board may apply funds to similar programs.”

Practical steps to structure the bequest

1. Identify the charity with its legal name and EIN

• Use the charity’s official legal name and Employer Identification Number (EIN) to avoid ambiguity. Confirm the organization’s charitable status on the IRS site before naming it (https://www.irs.gov/charities-non-profits/charitable-organizations).

1. Choose the type and funding priority

• Decide whether the gift is specific, residuary, percentage-based, or contingent. Indicate if the bequest is to be made after debts and expenses or before.

1. Provide alternate beneficiaries and contingencies

• Name successor charities or provide instructions if your first choice ceases to exist or cannot accept the gift.

1. Consider how the gift will be paid

• State whether the executor should liquidate assets to satisfy a pecuniary gift and whether sales should be discretionary to the executor.

1. Coordinate with beneficiary designations and titled assets

• Retirement accounts, life insurance, and payable-on-death accounts pass outside the will; change beneficiary forms if you want those to fund a charitable gift.

1. File and appraise non-cash gifts

• Non-cash gifts (real estate, art, collectibles) may require appraisals and documentation. Charities often have policies about accepting such gifts.

1. Notify the charity

• While not required, telling the charity and your family about your bequest helps with planning, stewardship conversations, and ensuring the charity can accept the gift as described.

Tax and financial considerations (high level)

• Estate tax: Charitable bequests generally reduce the value of your taxable estate, which can lower estate tax liability if your estate exceeds applicable exclusion thresholds. Exact impacts depend on federal and state estate tax rules current at the time of death (see: https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax).

• Income tax: Because bequests occur at death, the donor does not receive an immediate income tax charitable deduction. However, estates may claim deductions on an estate tax return where applicable.

• Appreciated assets: Donating appreciated securities or assets via a bequest can be tax-efficient for the estate and the charity. For strategies that rely on gifts of appreciated securities during life, see our guide on stock gifts and appreciated securities: Stock Gifts and Appreciated Securities: Tax-Smart Philanthropy.

When to use a trust instead of a simple will bequest

For larger or more complex gifts, consider testamentary trusts or lifetime charitable trusts:

• Charitable Remainder Trust (CRT): Pays income to beneficiaries (you or heirs) during a term, with remainder to charity. CRTs can provide income and tax advantages but require careful setup.

• Charitable Lead Trust (CLT): Pays income to charity for a term, with remainder to heirs; useful for passing assets to heirs with reduced transfer tax.

• Testamentary charitable trusts: Created by the will and take effect at death; useful to manage how funds are distributed and invested over time.

To compare simple wills and trust options, see our article: Wills vs. Trusts: Which Do You Need?.

Common pitfalls and how to avoid them

• Vague naming: Don’t use casual names. Use the legal corporate name and EIN to avoid misdirected gifts.

• No contingency plan: Always name an alternate charity or indicate how to proceed if the charity no longer exists.

• Ignoring titled assets: Retirement accounts and life insurance pass by beneficiary designation, so update forms if you want those proceeds to fund charitable gifts.

• Restrictive conditions without fallback: If you restrict funds too narrowly (e.g., for an extinct program), include a cy-près clause or fallback instructions so the charity can still use the funds effectively.

• Failing to coordinate with heirs: Clear communication prevents surprises and reduces the risk of family disputes.

Checklist before signing or updating your will

• Confirm charity’s legal name and EIN
• Decide gift type (specific, percentage, contingent)
• Draft fallback language and alternates
• Coordinate beneficiary designations on non-will assets
• Discuss intentions with family or executor when appropriate
• Consult an estate attorney to draft or review the bequest language
• Notify the charity if you want to be recognized or wish to set up directed support

Short real-world notes

• Example: A client who wished to fund local scholarships chose a 20% residuary bequest with a fallback to a regional education foundation; the clarity avoided probate delays and allowed immediate scholarship planning.

• Example: For a donor with valuable artwork, we recommended coordinating an appraisal and verifying that the intended museum could accept or sell the piece before naming it in the will.

Professional disclaimer

This article is educational and does not constitute legal, tax, or investment advice. Estate and tax laws change and outcomes depend on individual circumstances. Consult a qualified estate planning attorney and your tax advisor to draft bequest language and evaluate tax consequences.

Further reading and internal resources

• For strategies that align lifetime and testamentary giving, see: Creating a Charitable Legacy Through Estate Planning.
• For specifics about gifting appreciated securities during life, see: Stock Gifts and Appreciated Securities: Tax-Smart Philanthropy.

Author note

In my practice I recommend regular reviews of wills every 3–5 years or after major life events. Clear, simple language and coordination with beneficiary designations make charitable bequests reliable tools for leaving the legacy you intend.

Sources: IRS — Charitable Organizations and Estate Tax guidance (https://www.irs.gov/charities-non-profits/charitable-organizations; https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax). Additional context from nonprofit and estate planning resources.