When we think of the future, most people often don’t like to think that far – to what will happen to assets or property when we are gone. However, setting up your Will provides peace of mind that your wishes will be followed in the event of your passing.
This includes your wishes for who you want to pass your assets to, how your loved ones will be taken care of… and any ongoing legacy you would like to leave behind, such as charitable bequests.
In this article, we’ll go over some of the finer points of of bequests to charities in your Will, and how you can leave a lasting impact.
4 Ways to Include Charity in Your Will
For many of us, charitable giving is a way to extend our long-held values into our final wishes. Perhaps there was a charity that helped you or your family, or a cause you truly believe in – and you would like to take this opportunity to make a gift, however large or small, to help support their work.
There are four different options for how you can leave gifts in Wills. Here’s what you need to know about each of the different types when making your Estate plan:
1. Residual Estate Gifting
This is one of the most common ways people leave a charitable gift. It means you leave the remainder of your Estate (after first taking care of your loved ones and other named beneficiaries, any financial commitments, and other costs like funeral arrangements) to the charity of your choosing.
2. Pecuniary or Specific Gifting
This is when want to leave a specific sum or assets to a chosen charity. If you are leaving a monetary sum, this would be a specific amount outlined in your Will which is then gifted to charity. If you choose this method, your Estate must have the required funds for your charitable bequest, regardless of any change in circumstances.
3. Whole Estate Charitable Bequests
If you don’t want to leave your Estate to a individuals or family members, you can give it a charitable purpose. This is typically an option chosen by people who don’t have preferred beneficiaries or remaining family, but still want their Estate to make a positive impact.
4. Percentage or Fractional Gifting
This is when you leave a gift that is a percentage of your Estate. This method accounts for changes to your Estate over time (due to things like inflation, property values, change in your income, or the inclusion of other beneficiaries), which can make things easier when it comes to settling your affairs.
Do Charitable Bequests Offer Tax Benefits?
If you are donating to a deductible gift recipient (DGR) charity during your lifetime, anything over $2 is a tax-deductible donation.
Charitable bequests are not included in this, because they are part of your Estate. There are no inheritance or Estate taxes in Australia, so therefore, no tax to be deducted from your assets when leaving a bequest.
Making Sure Gifting Goes as Intended
The best way to ensure your wishes are followed, including any specific bequests to charity, is by having a current Will with clear instructions.
Keeping your Will up to date includes making changes as needed for any marriages, separations or other changes in family dynamic; and, ensuring the contact details and name for your chosen charity are still correct.
Charities may change their names to better reflect their mission, merged with another charity over time, or the legal name may differ from what they are branded as. For example, Wheels For Hope is the brand name for the charitable activities run by the Western Australian Motor Industry Foundation Inc.
You can find all charity details, such as address and charity ABN, on the ACNC Charity Register database.
Deciding on a Charity
If you’re not sure exactly of the organisation you want to support, but you know you want your Estate to benefit a charity… here’s a few tips to narrow down your options.
Think about what you value most
It might be animals, it might be making kids smile – dare we say it might be helping provide WA families with disabilities the gift of mobility…?
Whatever it is, your values in life can guide the lasting legacy you leave. If you know what group or groups in society you want to help, you can then find a charity that aligns with your values.
Consider existing funding opportunities
Every charity does important work, there’s no doubt about it. But when it comes to government funding, there’s only so much to go around. Often, smaller charities and those with a specific niche will be missed.
When making a charitable organisation one of your beneficiaries, you might consider leaving a bequest to a charity where even smaller donations can make a big impact. Finding charities in your local community can be a very rewarding exercise, as you can really see what your gift would be helping with.
Use the ACNC to search by charitable purpose
If you’re really stuck for exactly which Australian charity to donate to, but you know the kind of cause you want to support, you can filter charities by their charitable purpose.
On the ACNC Charity Register, you can search the database by who a charitable organisation helps – for example, families, children, people with disabilities.
Making Your Will Online
Wheels For Hope have now partnered with Safewill to help you secure your legacy. It’s safe, affordable, and you can complete the form on any device. Online Wills make it easy to ensure everyone you love is taken care of, your affairs are settled, and even leave a charitable gift in line with your values.
Once your family members, other loved ones, and essential matters are taken care of – we hope that you might consider leaving a gift to Wheels For Hope. Even small donations can help keep the wheels spinning!
Why not write your Will today, and leave a legacy of life-changing mobility for future generations.
How it Works:
- Prepare your Will: You answer few simple questions prepared by Australian lawyers that will allow you to create your own Will. It’s so easy to use, you can even do it on your phone.
- Submit for review: Safewill’s team make sure you’ve used the platform correctly and flag any issues within 3 business days, or 1 business day if you’ve opted for a Customised Will.
- Print & sign: Your Will is emailed back to you for printing and signing (you’ll need two witnesses for this). Then that’s all done – your legacy is secure.
Note: If you have a complex estate or situation, or you are unsure whether you can legally write a Will, or you require more in-depth legal help to properly direct you in disposing of your assets, Safewill recommend seeking independent legal advice.
Supporting Our Mobility Mission
Wheels for Hope is a Perth-based charity providing mobility to Western Australia families with disabilities, who do not have the benefit of suitable transport. With our wheelchair-accessible vans, these families are able to access critical medical and remedial care – and engage with the broader community.
However, these operations depend on the generosity of our community: Sponsors, donors, volunteers, and other sources of income like charitable gifts in wills.
Related reading: Keeping the Wheels Turning – What it takes to run our fleet
Each vehicle in our fleet is secured through our fund-raising efforts (and on some wonderful occasions, by generous donation from sponsors). The vehicles are allocated on a loan basis to eligible families with need for transport assistance. Whilst on loan, Wheels for Hope uses funds raised to license, insure and maintain the vehicle.
Want to find out more about our work, and how we provide support to families living with disability in WA? Why not contact us today, or discover more about our mission, our values, and our vision for the future.
