When it comes to helping supporters plan future gifts, one of the most common sources of confusion is deciding which assets should be included in a will and which should be distributed via beneficiary designations. I wrote about this a couple of years ago, but recent conversations with individuals have prompted me to revisit this important topic, especially how these vehicles can impact planned gifts for nonprofits.
These conversations happened with people, ages 35 to 85, who are hazy about the fairly simple rules and guidelines of estate planning and asset distribution. This confusion can lead to inaction. This means that asset distribution wishes can be mischaracterized or not properly allocated to the correct estate planning vehicle. For example, many people assume their will covers everything—from bank accounts to retirement funds to their guitar collection—but the reality is more nuanced. Understanding the distinction can save time, money, and unnecessary stress.
Most donors want to support causes they care about beyond their lifetime. But many never complete a planned gift simply because they’re confused:
This confusion stops legacy gifts from happening.
Nonprofits that clearly explain the difference between wills and beneficiary designations can unlock significantly more planned gifts—with less friction for donors. Nonprofits may receive gifts via beneficiary designations (much faster receipt of gifts since these funds bypass probate) or wills.
Let’s explore a few important nonprofit-oriented topics:
A will is a legal document that goes through probate and allows a donor to:
✅ Most common charitable bequest language:
“I give [% of my estate / $ specific amount / the residue of my estate] to [Charity Name], a nonprofit organization located at [address], Tax ID: [EIN].”
Important: Many donors think their will controls everything, but it doesn’t. That’s where beneficiary designations come in.
Certain assets bypass the will entirely and go directly to the person or charity listed on a beneficiary form or POD/TOD (Payable/Transfer on Death) form.
These include:
✅ These gifts are often faster, simpler, and larger than will-based gifts.
✅ Donors can often update beneficiary designations online or with one page—no attorney required.
✅ Charities can be listed as:
Retirement accounts can be a donor’s largest asset, and they are tax-inefficient to leave to heirs. Leaving them to charity is often the most tax-smart gift a donor can make.
If you’re only telling donors “remember us in your will,” you’re missing half the opportunity.
Most donors have never been made aware of the difference. If your nonprofit can explain it clearly, you become a trusted advisor and catalyst for action.
Explain the difference simply:
For Wills (Bequest):
“I give 10% of my estate to [Charity Name], EIN ______, located at ______.”
For Retirement or Life Insurance Beneficiary Form:
“Charity Name, EIN ______”
✅ FAQ: “Do I need a will to leave a gift?”
✅ Short explanations: “Wills vs. beneficiary designations”
✅ Step-by-step instructions
✅ Downloadable beneficiary form guide
✅ Sample bequest language
✅ Conversation starters for donors
Create two sections:
Use language like:
“You can leave a legacy gift in two simple ways: through your will or by naming our organization as a beneficiary on a retirement or life insurance plan.”
Ask:
“Have you reviewed the beneficiary designations on your accounts recently?”
This question opens the door to meaningful planned gifts.
Example:
“Jane left our organization 5% of her IRA—it took her just a few minutes to update her beneficiary form, and her gift will provide scholarships for years to come.”
LifeLegacy provides nonprofits with:
✅ A white-labeled, attorney-approved online will platform donors can complete in minutes
✅ Built-in charitable bequest prompts
✅ Easy guidance on beneficiary designations and POD/TOD accounts
✅ Marketing tools, templates, and donor education materials
✅ Automated reporting and gift tracking
✅ A 94% client retention rate—because it works
The result:
Nonprofits that use LifeLegacy secure more planned gifts, sooner, with less staff time.
To unlock more legacy gifts:
Don’t just talk about wills.
Teach donors about beneficiary designations, too.
When nonprofits communicate this clearly—and offer simple tools—donors take action. The result is larger gifts, deeper relationships, and long-term sustainability for your mission.
LifeLegacy can help your organization:
Let’s make planned giving simple, accessible, and impactful—together.
Head of Partnerships
Craig@lifelegacy.io
Recurring giving programs help build sustainable support over time. Explore how to create a solid foundation for your program to encourage participation.
Qualified Charitable Distributions (QCDs) are becoming one of the fastest-growing forms of giving in the United States. As millions of Americans age into eligibility and retirement assets remain at historically high levels, 2026 is shaping up to be a breakout year for nonprofits that understand how to build a modern QCD strategy.
Planned giving isn’t only about money, it’s about meaning. When you frame the conversation around values, legacy, and impact, donors feel invited rather than pressured.
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