How to Leave Money to Charity in Your Estate

Learn the main ways to include charitable giving in your estate plan, from simple bequests to tax-advantaged strategies.

1. Choose your charitable giving method. You have three main options: a simple bequest in your will (like "I leave $10,000 to XYZ Charity"), naming a charity as beneficiary on retirement accounts or life insurance, or creating a charitable trust. Simple bequests work for most people and are easy to change. Beneficiary designations skip probate and transfer directly. Charitable trusts are complex but can provide income to heirs while giving the remainder to charity.
2. Decide between cash and other assets. Cash gifts are straightforward — the charity gets exactly what you specify. But donating appreciated assets like stocks or real estate can be more tax-efficient for your estate. Your heirs avoid capital gains taxes, and the full value counts toward estate tax deductions. Just make sure the charity can handle non-cash gifts before you specify them.
3. Research and verify your chosen charities. Check that organizations are legitimate 501(c)(3) nonprofits using the IRS Tax Exempt Organization Search or charity evaluators like Charity Navigator. Get their exact legal name and federal tax ID number — "American Red Cross" might not match their legal entity name. Consider including backup charities in case your first choice no longer exists when you die.
4. Draft the legal documents properly. Work with an estate planning attorney to write clear, specific language. Avoid vague terms like "my favorite charity" — name the exact organization, amount or percentage, and what happens if they can't accept the gift. For beneficiary designations, contact your account providers directly to update forms. Keep copies of all documents and review them every few years.
5. Understand the tax implications. Charitable bequests reduce your taxable estate dollar-for-dollar, which matters if your estate exceeds $13.61 million in 2024. There's no limit on the charitable deduction for estate tax purposes. However, your heirs can't claim income tax deductions for your charitable gifts — only you can do that during your lifetime.
6. Consider timing and coordination. Decide whether to give a fixed dollar amount or a percentage of your estate. Fixed amounts provide certainty but might become too large or small relative to your wealth over time. Coordinate with your overall estate plan so charitable gifts don't accidentally reduce what you intended to leave family members. Tell your executor about charitable bequests so they can plan accordingly.