Many charitable organizations are benefitting from bequests nowadays. Not only do bequests invest in the sustainability of an organization, but it is an effective indicator of an organizationís relationship status with beneficiaries and its supporting community.
Bequests are the transfers of wealth that occur upon a donor's death and that include transfers by means of a will or a trust. Bequests can take several forms such as:
∑ Specific bequest - a certain amount of cash, securities, or property.
∑ General bequest - property that is similar to all other items distributed, usually cash.
∑ Percentage bequest - a stated percentage of the donor's estate.
∑ Residual bequest - all or a portion of what remains of the estate after specific and general bequests is distributed.
Besides a straight bequest, you can also set up a trust that will benefit charitable organizations during or after your lifetime (see charitable remainder trust andcharitable lead trust). Another way to leave money is to name one or more nonprofits as beneficiaries of an insurance policy or as the recipient of your IRA or retirement fund.