Jill: It could be I am missing something from the contents of what has been said in your Bequests thread. But, I will respond as I understand what you wrote. You wanted “... information on setting up a mechanism to accept bequests ...” for your non-profit organization.(1) you could be wanting such information when you learn that a very much alive individual plans to remember your organization in her or his will.
(2) you could be wanting such information when you learn that someone died and did remember your organization in her or his will.
Either way, in my opinion, the most important mechanism is one which you set up within your organization with your own Board leadership. You cite the mechanism/practice in your by-laws, then to have that mechanism/practice written into your financial policy manual. What to have as the mechanism---let’s call it policy?
(a) In situation no. (1), you have an opportunity to learn what, if any, conditions would be attached to the bequest. Chances are the money will be later coming to you on an unrestricted basis. if there is a condition, you will know whether or not it is acceptable. Conditions could be that the money go into an endowment fund, support a given program, etc.
(b) in situation (2), you will be informed by the deceased’s attorney/financial advisor in advance that you are a beneficiary, and at that time you will learn the same information as I described in the first scenario.
Your policy, set up in advance in either case, will guide your use of the funds, and the determination whether or not any conditions attached to the bequest are acceptable.
I worked for an Orchestra. Easily, 90% of bequests were given on an unrestricted basis. That meant we could use the money as we wished. Our Board had in place a policy which would review, bequest by bequest, whether this one went into our endowment, or that one was used to offset that year’s operating expenses. Sometimes the bequest funds were used to pay for a program or service we wanted to do, but which was not in the budget.
When there were conditions, our policy made clear that we would take great care to be sure the conditions were in our best interest, of course---to be certain that any desired application of the funds agreed with our mission. If the bequest funds were to go into endowment in support of a given program or service, we had to be sure---since endowment is in perpetuity---that the program or service would continue as long as our organization existed.
So, in my humble opinion, with my (1) and (2) scenarios, you should have the answers to your three points. They were, and I quote:
-- “the specific benefits to the donor providing the bequest;”
(All of that comes from the donors’ estate management side. You have nothing at all to do with this. Except, of course, to appropriately recognize the gift, through a named opportunity, or other such memorial.)
-- “types of legal documents required to execute the bequest;”
(None as far as you are concerned. That’s the duty of the Estate Manager. You just sign the closing documents they prepare, and receive the check.)
--- how one works with a donor's estate so their intention is followed.
(Just as you will be told as I cited above.)
How to let people know that you will welcome and appreciate being remembered in their wills is another story. But, I thought that you only wanted at this time to know what to do when you heard you are in a will, and when you are told a bequest is coming.
Tony Poderis
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