How to Donate to a Charity in Your Will in California | Estate Planning Guide

Short Answer

In California, donating to a charity in your will requires three essential steps: choose the gift type, determine the gift amount or percentage, and accurately name the nonprofit organization in your Last Will and Testament. A charitable bequest can include money, real estate, stocks, retirement accounts, or a percentage of your estate. When drafted correctly, charitable giving creates a lasting legacy, supports favorite causes, and may reduce estate taxes, while ensuring loved ones receive what you intend.

Introduction

People give because they care. Causes reflect values. A will transforms generosity into permanence.

For many Californians, charitable giving is not an afterthought; it is an extension of identity. Education, health, conservation, social justice, arts, culture, equality, and community outreach define a lifetime. A will allows those values to live beyond death.

Yet, good intentions alone do not fund programs, nonprofits, or outreach. Only a properly drafted estate plan can ensure a donation reaches the intended organization without delay, conflict, or waste. When charitable giving is vague, outdated, or legally flawed, probate issues arise, heirs contest, and assets stall.

A carefully structured charitable bequest creates a meaningful way to give back, without surprising relatives or harming family security.

Why Charitable Giving Belongs in an Estate Plan

A charitable donation made through a will is often the largest donation of a lifetime. Unlike annual gifts, estate gifts allow people to:

• Preserve financial security during life

• Make a transformative impact at death

• Create a lasting legacy

• Support causes close to the heart

• Reduce taxable estate exposure

Estate gifts fund scholarships, hospitals, conservation programs, arts institutions, and community organizations for decades. They also relieve heirs of pressure to decide how to honor a loved one’s values.

Planned gifts, legacy gifts, and bequests operate quietly but powerfully—turning assets into impact.

The Three-Step Process to Donate Through Your Will

1. Choose the Gift Type

A charitable bequest can take several forms:

• A specific dollar amount (e.g., $50,000)

• A percentage of the estate (e.g., 10%)

• A residuary gift (what remains after other distributions)

• A specific asset such as:

  • Cash

  • Stocks and bonds

  • Cryptocurrency

  • Real estate or a house

  • Personal property (vehicle, jewelry, artwork)

Charities may serve as:

• A primary beneficiary

• A secondary beneficiary

• A residuary beneficiary

Each structure affects family distributions differently. Percentages adapt automatically as estates change, while fixed amounts provide certainty.

2. Determine the Gift Amount

The amount reflects priorities. Some donors leave symbolic gifts. Others dedicate significant estate percentages. Both matter.

Common approaches include:

• 5–10% of the estate

• Remainder after family distributions

• A specific asset with sentimental meaning

Estate planning balances generosity with the protection of loved ones.

3. Accurately Name the Organization

Precision prevents failure. The will must list:

• Full legal name of the nonprofit organization

• Street address

• Employer Identification Number (EIN)

Charities often share names across states or chapters. “Big Brothers Big Sisters” may exist nationally and locally. Without precision, probate courts cannot verify intent.

Use the IRS Tax Exempt Organization Search database to confirm:

• Correct legal entity

• EIN

• Tax-exempt status

Accuracy ensures donation integrity.

Choosing the Right Gift Type

Cash and Financial Assets

Simple, flexible, and easy to distribute. Cash, stocks, and bonds pass cleanly through probate.

Real Estate and Personal Property

A house, land, or artwork can fund programs or endowments. However, real property requires clear instructions for sale or transfer.

Non-Probate Assets

Some of the most efficient gifts bypass probate entirely:

• Life insurance policies

• Retirement accounts (IRAs, 401(k)s)

By naming a charity as a beneficiary, distributions occur directly. Retirement funds are especially powerful because charities pay no income taxes on withdrawals—unlike individuals.

Selecting and Naming the Right Organization

Not every nonprofit is equal. Consider:

• Mission alignment

• Program impact

• Financial transparency

• Board governance

• Longevity and experience

Research through:

• IRS databases

• Organization websites

• Annual reports

• Charity evaluators

Confirm whether the gift should go to:

• A national nonprofit

• A local chapter

• A specific program

Naming clarity prevents disputes and delays.

Advanced Planning Tools for Larger Legacies

Charitable Remainder Trust (CRT)

A CRT provides income during life, then transfers remaining assets to charity at death. Benefits include:

• Immediate tax deduction

• Lifetime income

• Estate tax reduction

Charitable Lead Trust (CLT)

A CLT pays income to charity first, then transfers assets to heirs later, often reducing estate and gift tax exposure.

Donor-Advised Fund (DAF)

A DAF allows donors to recommend grants over time. Funds may be contributed during life or through an estate plan.

Each tool requires precise drafting and coordination with estate objectives.

Legal and Tax Considerations in California

• Charitable bequests reduce the taxable estate

• California imposes no state inheritance tax

• Federal estate tax exemptions change

• Community property rules may require spouse consent

• Ambiguous instructions invite probate conflicts

• Outdated plans cause misdirected gifts

Proper drafting ensures:

• Compliance with the probate code

• No delays in probate administration

• No wasted assets

• No unintended disinheritance

Charitable giving should align with marital assets, trust structures, and beneficiary designations.

Common Mistakes That Undermine Good Intentions

Even generous people make errors that defeat their purpose:

• Naming the wrong organization

• Omitting EIN or address

• Failing to update the will

• Using vague descriptions

• Conflicting beneficiary designations

• Forgetting non-probate assets

• Ignoring spouse rights

• Relying on free will forms

These mistakes cause:

• Delays

• Litigation

• Confusion

• Lost gifts

A will must be legally precise to honor generosity.

Key Takeaways

• A charitable bequest creates a lasting legacy.

• The three-step process: choose gift type, choose amount, and name the organization accurately.

• Gifts may include money, property, investments, or percentages.

• Retirement accounts and life insurance offer powerful tax efficiency.

• Larger estates may benefit from CRTs, CLTs, or donor-advised funds.

• California law requires precision to avoid probate disputes.

• Updated estate plans protect both charities and loved ones.

Conclusion

A will speaks when a person can no longer speak. It tells family, courts, and communities what mattered most. Charitable giving transforms values into action, funding education, healing, conservation, and justice beyond a lifetime.

Moravec Varga & Mooney focuses on Probate, Trusts & Wills, Trust Administration, Medi-Cal Planning, Pre & Post Nuptial Agreements, and Estate Tax matters throughout California. When objectives include protecting heirs while supporting favorite causes, clarity begins with a phone call.