Bequests to Not-for-Profit Organisations

Leaving a gift in a Will to a not-for-profit organisation (NFP) is one of the most meaningful ways a person can create a lasting legacy. For many testators and testatrixes, it is an opportunity to support causes they care deeply about long after they are gone.
For NFPs, bequests are an often underutilised but incredibly powerful funding stream — one that can provide long-term financial sustainability without the need for ongoing fundraising campaigns.
What is a Bequest?
A bequest is a gift made in a Will. Some forms include:
- A percentage of the estate (residuary of the Estate)
- A specific sum of money (cash bequest)
- A particular asset (such as property, shares or artwork)
For many clients, a bequest is an attractive option because it allows them to provide for family first, while still leaving a meaningful contribution to a cause they value.
Common Types of Bequests
When preparing a Will, it is critical that the clause is drafted correctly to avoid uncertainty or disputes. Below are two of the most common types of charitable bequests.
1. Residuary Bequest
A residuary bequest gifts a percentage of the remaining estate after all debts, expenses and specific gifts have been dealt with.
Example clause:
I give and bequeath to [Full Legal Name of Charity] (ABN [insert]) of [address] the sum of [insert percentage, e.g. 10%] of my residuary estate for its general charitable purposes, free of all duties and taxes. I declare that the receipt of the Chief Executive Officer, Treasurer or other authorised officer for the time being of the organisation shall be a sufficient discharge to my Trustee, who shall not be bound to see to the application of this gift.
This works well because residuary gifts naturally adjust with the size of the estate and reduce the risk of unintended consequences if asset values change over time.
2. Cash Bequest
A cash (or pecuniary) bequest is a fixed sum gifted to the charity.
Example clause:
I give and bequeath to [Full Legal Name of Charity] (ABN [insert]) of [address] the sum of $[insert amount] for its general charitable purposes, free of all duties and taxes. I declare that the receipt of the Chief Executive Officer, Treasurer or other authorised officer for the time being of the organisation shall be a sufficient discharge to my Trustee, who shall not be bound to see to the application of this gift.
Fixed amounts can lose value over time due to inflation, so some clients prefer percentage-based gifts instead.
Why NFPs Should Be Actively Promoting Bequests
Bequests are not just a legal mechanism — they are a strategic opportunity.
Forward-thinking NFPs are increasingly building structured bequest programs as part of their fundraising strategy. This can include:
- Educating supporters about leaving a gift in their Will
- Providing suggested wording (like the clauses above)
- Hosting “Wills days” or legacy planning events
- Creating recognition programs for legacy donors
Unlike traditional fundraising, bequests often come from highly engaged supporters and can result in significant contributions that materially impact an organisation’s future.
Can Family Members Challenge a Bequest?
The short answer is yes. In Australia, eligible family members can bring a family provision claim to challenge a Will if they believe they have not been adequately provided for.
This means that even where a bequest has been validly drafted, it may still be reduced or altered by the Court.
Should an NFP fight a claim?
In most cases, our practical advice is to negotiate first.
Litigation can be:
- Costly
- Time-consuming
- Reputationally risky for the organisation
Many disputes can be resolved through commercial negotiation, balancing the needs of the family with the intentions of the deceased.
NFPs should approach these situations pragmatically. The goal is to preserve as much of the gift as possible while avoiding unnecessary legal spend.
When a Bequest May Not Be Suitable
Not all gifts are straightforward or beneficial.
Examples we often see include:
- Property that is expensive to maintain or difficult to sell
- Gifts tied to strict conditions the charity cannot realistically fulfil
- Assets that fall outside the charity’s purpose or operational capacity
In these situations, it is often possible to work with the executor or executrix and the family to vary how the gift is applied, while still honouring the testator or testatrix’s intention.
This may involve:
- Redirecting the gift to a general purpose fund
- Selling an asset and applying proceeds differently
- Agreeing on a practical alternative outcome
The key is collaboration and not a rigid adherence to terms that may no longer be workable.
Final Thoughts
Bequests sit at the intersection of law, legacy, and impact.
For individuals, they provide a powerful way to support causes that matter.
For NFPs, they represent a long-term, sustainable funding opportunity.
The most effective outcomes arise where:
- Wills are clearly and professionally drafted
- NFPs are proactive in their approach to bequests
- All parties take a practical, solution-focused approach where issues arise
If you are considering including a charitable bequest in your Will or if your organisation is looking to establish or strengthen a bequest program and obtaining the right legal advice is critical.

Senior Solicitor
Email: kristen@hntlegal.com.au
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