A charitable bequest can represent years of generosity and a donor’s desire to continue supporting an important mission. Yet unclear language, family disagreements, questions about capacity, or allegations of undue influence can put that gift at risk. Planned giving professionals can take several practical steps to help protect charitable bequests and increase the likelihood that donors’ wishes will be honored.
What can put a charitable bequest at risk
A variety of circumstances can affect how a charitable bequest is understood and carried out or increase the likelihood of a challenge.
• Capacity concerns can arise when beneficiaries allege that a donor lacked the mental capacity to make a bequest.
• Undue influence may become a concern when a donor is vulnerable to pressure from someone in a close or dependent relationship.
• Ambiguous language, including unclear or conflicting terms in a charitable bequest, can lead to disputes. An unclear beneficiary, purpose, or condition may create uncertainty about how the gift should be carried out.
• Family disputes can put charitable bequests at risk, particularly in blended families or when inheritance expectations don’t match the reality of an estate plan.
Ways to help protect bequests
Your organization can take several proactive steps while discussing and documenting a planned gift.
1. Provide accurate gift information.
Make sure donors have your organization’s correct legal name and tax identification number. Providing suggested bequest language can help donors clearly identify the charitable beneficiary and describe the gift, although the donor’s attorney should prepare or review the final language.
2. Clarify the terms of the gift.
If a donor wants to restrict a gift to a particular purpose, make sure the intended use is clearly defined and confirm that your organization can administer the gift as intended. Unusual, highly restrictive, or unclear terms should be reviewed according to the organization’s gift acceptance policies and, when appropriate, by leadership or legal counsel. Encourage donors to have their attorneys incorporate the agreed-upon terms into their estate documents.
3. Document donor communications.
Keep contemporaneous records of donor communications, including the donor’s own statements, who participated in the conversation, what information your organization provided to the donor, and whether outside advisors were involved. Do not speculate about capacity or diagnose impairments. Your documentation should focus on objective observations and the donor’s own words.
4. Know when to pause and seek guidance.
Certain circumstances may warrant pausing a donor conversation and consulting organizational leadership or legal counsel. These may include:
• The donor appears confused about the nature or terms of the proposed gift.
• Someone else is answering questions or directing the conversation for the donor.
• The donor proposes a significant or unexpected change to a longstanding estate plan.
• A family member, caregiver, or other person appears to be pressuring the donor.
These signs do not necessarily indicate incapacity, undue influence, or wrongdoing. They are signals to pause, document objective facts, and seek appropriate guidance rather than attempting to resolve the issue independently.
5. Train all donor-facing staff.
Everyone who interacts with donors should understand the organization’s procedures for recognizing and responding to potential concerns. Training should cover the circumstances that warrant pausing the conversation, what objective information to document, and whom to contact for guidance.
6. Encourage independent professional advice.
Advise donors to consult their own independent legal and tax advisors when creating or revising bequest documents. This approach aligns with the National Association of Charitable Gift Planners’ Model Standards of Practice, which call for gift planners acting on behalf of a charity to strongly encourage donors to discuss proposed gifts with independent legal and tax advisors of their choice. Make it clear that your organization is not providing the donor with legal or financial advice.
7. Encourage appropriate family conversations.
When appropriate, encourage donors to consider discussing their charitable intentions with family members and explaining why the gift matters to them. A conversation cannot prevent every dispute, and some donors may have valid reasons for keeping their plans private. However, reducing surprises may help family members understand and respect the donor’s decision. The donor—not your organization—should decide what to disclose and when.
As significant wealth moves from one generation to the next, planned giving officers have an important role in helping donors preserve their charitable intentions. Clear communication, objective documentation, independent professional guidance, and well-defined internal procedures can help reduce uncertainty and increase the likelihood that donors’ charitable intentions will be honored.
