Charitable bequests are an easy way to donate part of your estate to charity organisations. Other than the tax benefits that come with charity donations, it is a sure way to leave a lasting impact by helping vulnerable groups in your community. Below are some considerations to make when donating to a bequest program.
Choose A Suitable Organisation
Conduct some due diligence to identify reputable charities in your area. Consider donating to causes that you are passionate about or those that make a tremendous impact in your locality. For example, a bequest program to help children is perfect for people who are passionate about kids and education. Besides, investing in children's education will help build your legacy long after you die.
Examine the organisation's operations. Some of your concerns should include:
- Check the qualifications and experience of the management team. It helps improve your confidence in the organisation.
- Examine the charity's books of accounts. Funds donated should be used to achieve the organisation's mission.
- You may want to avoid charities in massive debt or those that mismanage funds.
- Do not shy away from visiting the organisation's premises. It helps you get hands-on experience with how the charity works.
Think Long Term
How much are you willing to donate? Some people may want to give a specific amount while others would want the charity to receive a percentage of their total estate. Nonetheless, it is vital to have a long term plan for how you can support the charity. For instance, you could divide your contributions into annual payments.
Bequests do not have to be in monetary form. You could donate gifts such as shares, jewellery, land or commercial buildings. Gifts that provide continuous income ensure the charity receives your donations for years to come. Talk with the charity's management and inquire what kind of gifts they accept.
Managing The Bequest
Your wills and estate lawyer will help you determine reasonable ways to manage the bequest. For instance, the will should indicate what time the donation should be sent. Besides, the contributions should cease if the charity organisation decides to close its doors. If your gift (such as property or shares) is no longer profitable, the charity organisation should dispose of the asset and use the proceeds as your final donation.
When donating to a bequest program, choose a suitable organisation, think long term and initiate reasonable ways to manage the bequest. Remember to bring your friends and family on board when making your charity donation.