How to Leave Money to Charity in Your Will: Charitable Bequests Explained

A charitable bequest — a gift to a nonprofit organization made through your will or trust — is one of the most lasting ways to express what you valued in your life. Most charitable bequests cost nothing during your lifetime and require only a few words in your will or trust. Here's how it works.

Why Charitable Bequests Matter

Charitable bequests are the backbone of charitable endowments, scholarships, research funds, and capital campaigns. Most major institutions — universities, hospitals, arts organizations, environmental groups — depend significantly on planned gifts from people who cared about the mission and chose to support it at death.

For the donor, a charitable bequest is a way to extend your values and your impact beyond your lifetime — to say, through a concrete act, what you believed in and what you wanted to see in the world.

Types of Charitable Bequests

Specific bequest

A fixed dollar amount or specific asset left to the charity: "I give $25,000 to the Humane Society of the United States." Clear and predictable for both your estate and the charity.

Percentage bequest

A percentage of your estate or residuary estate: "I give 15% of my residuary estate to [charity]." Adjusts automatically for changes in estate value; doesn't require updating as your estate grows or shrinks.

Residuary bequest

A gift of the remainder of your estate after all other bequests and obligations are satisfied: "I give the residue of my estate to [charity]." Often used by people who want to provide for specific people first, then leave the rest to charity.

Contingent bequest

A gift that takes effect only if certain conditions are met — for example, if a primary beneficiary predeceases you: "If my spouse does not survive me, I give my entire estate to [charity]." A safety net that directs assets to charity if primary beneficiaries cannot receive them.

How to Include a Charitable Bequest

Get the language right

Work with an estate planning attorney to draft the bequest language. Key elements:

The charity's full legal name (not a nickname or abbreviation)
The charity's address and/or EIN (federal tax ID number)
A clear description of what you're giving
A contingency in case the charity ceases to exist at your death

Consider notifying the charity

Most charities appreciate being notified of a planned gift — it helps them plan and allows them to express gratitude to you during your lifetime. Many charities have planned giving staff who can help you structure the gift, ensure the language is correct, and discuss how you'd like the gift used (restricted to a specific purpose vs. unrestricted for general use). Notification is optional; your bequest is valid whether or not the charity knows about it in advance.

Tax Efficiency: Donating Appreciated Assets

Charitable bequests of appreciated assets — stocks, real estate, art — are particularly tax-efficient:

The charity receives the full fair market value
The estate gets an estate tax deduction at full fair market value
Neither the estate nor the heirs pays capital gains tax on the appreciation

For assets with large embedded capital gains, a bequest — rather than a lifetime gift or leaving it to heirs — often produces the best tax outcome for all parties.

Alternatives to a Simple Bequest

For more complex charitable giving goals, other vehicles include:

Charitable Remainder Trust (CRT): Provides income to you or a beneficiary during life, with the remainder going to charity at death
Donor-Advised Fund (DAF): Leave money to a DAF at death; your family can then direct grants to charities over time
Private foundation: For very large charitable intentions; provides ongoing family involvement in grantmaking

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Frequently Asked Questions

What is a charitable bequest?

A charitable bequest is a gift made to a nonprofit organization through your will or trust — effective at your death rather than during your lifetime. It is the most common form of planned giving. You can leave: a specific dollar amount ("I give $10,000 to the American Cancer Society"); a specific asset ("I give my collection of paintings to the local art museum"); a percentage of your estate ("I give 10% of my residuary estate to [charity]"); or the entire residue of your estate after other bequests are satisfied ("I give the remainder of my estate to [charity]"). Charitable bequests can be revocable (you can change your mind during your lifetime — this is the typical approach with will provisions and revocable trust provisions) or irrevocable (certain trust structures). A charitable bequest is deducted from your taxable estate for estate tax purposes, which matters for larger estates.

What are the tax benefits of a charitable bequest?

Charitable bequests made through a will or trust qualify for an unlimited estate tax charitable deduction — meaning the full amount of the bequest reduces your taxable estate dollar for dollar. For estates above the federal estate tax exemption (currently about $13.99 million per individual), this deduction can significantly reduce estate tax. For estates below the exemption — the vast majority — the estate tax deduction provides no immediate benefit (there's no estate tax to reduce). However, charitable bequests can also reduce state estate taxes in the twelve states and DC that have their own estate taxes (with lower exemptions). Additionally, charitable bequests of appreciated assets (like stock or real estate) can be particularly tax-efficient: the charity receives the full value without paying capital gains tax, the estate gets the estate tax deduction at full fair market value, and heirs avoid paying capital gains tax on the appreciation.

How do you include a charitable bequest in a will?

Including a charitable bequest in your will requires specific legal language that correctly identifies the charity and the gift. Best practices: use the charity's official legal name (not a common shorthand); include the charity's address, EIN (federal tax ID number), or other identifying information to prevent confusion if multiple organizations have similar names; specify exactly what you're giving (amount, percentage, or specific asset); include a contingency if the charity no longer exists at your death (gifts to a successor organization, or a reversion to your estate); and work with an estate planning attorney to ensure the language is legally correct and your intent is clearly expressed. Also consider: notifying the charity of your bequest during your lifetime — most charities have planned giving departments that can help you structure the gift and will acknowledge your intentions; and review the bequest periodically to ensure the charity still aligns with your values and the gift amount still reflects your intentions.