What is a legacy (bequest) and its role for charities?

What is a legacy (bequest) and its role for charities?

• A. A legacy is a gift left in a will to a charity; it provides long-term funding.
• B. A legacy is a donation given during life from assets.
• C. A legacy is a grant from government.
• D. A legacy is a fundraising event.

Answer: (A)

A legacy (bequest) is a gift left to a charity in a person’s will, becoming funding after they pass away. It’s a form of planned giving, and it can be a fixed amount, a specific asset, or a share of the remaining estate, either unrestricted or earmarked for a particular purpose. Because it’s arranged in advance, it provides long-term, often significant, funding that charities can rely on for future programs, endowments, or capital projects, helping with planning and stability. This is different from gifts given during life, such as a donation made while someone is alive, or from government grants and fundraising events, which are not bequests. Legacies stand out for their ability to provide enduring support that extends a donor’s impact beyond their lifetime.

A legacy (bequest) is a gift left to a charity in a person’s will, becoming funding after they pass away. It’s a form of planned giving, and it can be a fixed amount, a specific asset, or a share of the remaining estate, either unrestricted or earmarked for a particular purpose. Because it’s arranged in advance, it provides long-term, often significant, funding that charities can rely on for future programs, endowments, or capital projects, helping with planning and stability.

This is different from gifts given during life, such as a donation made while someone is alive, or from government grants and fundraising events, which are not bequests. Legacies stand out for their ability to provide enduring support that extends a donor’s impact beyond their lifetime.