Key Term

What is Bequest?

Definition

A bequest is a transfer of assets, such as money, property, or other valuables, that is made through a will or estate plan to take effect after the donor's death. In charitable giving, a bequest specifically refers to the act of leaving assets to a nonprofit organization, charity, or foundation as part of one's legacy planning.

Significance

Bequests represent one of the most significant sources of charitable giving, allowing donors to make substantial contributions while maintaining control of their assets during their lifetime. They are particularly important for nonprofit organizations as they often result in larger gifts compared to regular donations, helping to build endowments and ensure long-term financial stability. Bequests also offer potential tax benefits to the donor's estate and provide a meaningful way for individuals to create a lasting legacy that aligns with their values and supports causes they care about beyond their lifetime.