A bequest is an act of leaving personal wealth to a person or heir as stipulated by a will. But a common misconception is that wealth, property or assets should, or can only be left to family or friends. There is another type of bequest, however, that is neither as common nor undertaken.
Charity bequests allow individuals to leave their wealth, or a part of their wealth, to a specific charitable organisation. While underused, charitable bequests still play an important role in the operation and funding of charities and other not-for-profit organisations, with the funds or assets being injected into their projects, aid administration or organisation activities.
Currently, less than 10% of Australians leave behind a charitable bequest each year. If you’d like to improve that figure, here’s a bit of information on charity bequests and how they can make a significant difference.
- It doesn’t have to be ‘one or the other’. A common misconception is that wealth or assets can’t be split between family/friends and charitable organisations. It doesn’t have to be one or the other, and a certain donation or amount can be allocated to a charity, with the rest being left to family and friends. Importantly, all of this can be stipulated and legally binding in a will so that there is no confusion over how the funds and assets are to be divided after the will writer’s passing.
- It can be left freely or for a specific purpose. When a charity bequest is made in a will, the funds can be specified as ‘free’, and thus can be used by the charity freely for whatever use or purpose they deem necessary. Alternatively, funds or assets can be left for a specific purpose. If a person has been particularly active and passionate about child sponsorship, for example, they might be interested in continuing to sponsor a child through their will. The ability to specify what your bequest will be used for means you can make a difference, or continue to make a difference, to a cause or charity that holds significance, or is important to you.
- Even small donation helps. Whether you leave a small or large donation, any bequest to charity in a will is appreciated and will go a long way to making a difference to a cause. Even if it’s the smallest amount, you’ll still be giving and donating to a worthwhile cause that relies on the generosity and goodwill of the public.
Making a bequest in your will is making a difference. There are a number of organisations and companies that can help you organise and arrange a charitable bequest.
Bio: Is there a cause or organisation that would you leave a bequest to? Consider leaving a charity donation in your will.