Gifts in wills are one of the most durable income streams available to Australian charities, and most small organisations have never formally asked for one.
- "Gift in wills" is the phrase the Australian sector prefers; bequest and legacy giving mean the same thing.
- Gifts in wills are not tax-deductible to the donor or the estate. The $2 rule applies to lifetime gifts to DGR-endorsed organisations, not to gifts made through a will.
- You do not need DGR endorsement to receive a bequest. DGR governs the deductibility of lifetime giving, not who can be named in a will.
- Your exact registered legal name plus your ABN must appear in the will. Mergers and rebrands are a common reason bequests fail.
- Four gift types you can invite: residuary, percentage, pecuniary (a set sum), and a specific asset.
- Always point supporters to their own solicitor or state public trustee for the actual will drafting.
Donations and bequests to Australian charities totalled roughly $13.9 billion in the year to 30 June 2023, according to the ACNC Australian Charities Report series. Yet bequests remain one of the most underdeveloped income streams for small-to-mid charities. The roughly 60,000 registered charities in Australia compete hard for grants and annual-appeal gifts. A gifts-in-wills program offers something different: a long-horizon income source that does not depend on winning competitive grant rounds, does not require a big marketing budget, and can compound quietly over years.
This guide is written for a fundraising coordinator, volunteer, or part-time fundraising lead who has an annual appeal running but has never formally asked a supporter to include the cause in their will. It is not a guide for solicitors or estate planners. Every place where legal precision matters, we will say so and direct you to a solicitor.
In this article:
What is a gift in wills?
A gift in wills is a gift left to your charity through someone's will. It takes effect after the person dies and is administered by their executor as part of their estate.
The Australian fundraising sector uses several terms interchangeably:
- Bequest is the legal term used in wills and court documents.
- Legacy giving or legacy gift appears in some charity programs, particularly larger national organisations.
All three mean the same thing in everyday use. This guide uses "gift in wills" as the primary term, with "bequest" where the legal context requires it.
Why gifts in wills matter for Australian charities
Most small charities build their income around annual appeals, events, and grants. Grants in particular are a time-intensive, low-yield channel for many organisations, and the competitive pressure has grown. A gifts-in-wills program is different in three important ways.
First, a bequest is a long-horizon gift. The supporter who indicates an intention today may be stewarded for ten or twenty years before the gift is realised. That timeline requires a different kind of relationship, but it is also a more durable one.
Second, the sector data shows the channel is substantial and growing. Philanthropy Australia has consistently identified bequests as one of the largest single sources of philanthropic income in Australia. The $13.9 billion donations-and-bequests figure from the ACNC includes bequest income as a meaningful slice, and sector research suggests most charities that run active programs see bequests grow as a proportion of total income over time.
Third, a bequest program does not require a full-time gift-in-wills officer. Australia's mid-sized charities built their bequest programs with a coordinator, a willing board, a clear policy, and consistent, unhurried communication with long-term supporters.
The four types of gifts you can invite
When you ask a supporter to consider a gift in wills, it helps to offer them clear options rather than leaving them to work out the form themselves. There are four main bequest types used in Australian wills.
Residuary bequest. The supporter leaves a share of what remains of their estate after all specific gifts, debts, and expenses have been paid. This is typically expressed as a percentage (for example, "I give 10% of the residue of my estate to..."). Residuary gifts often produce the largest amounts and are the most common form of major bequest to AU charities.
Percentage bequest. A fixed percentage of the total estate (rather than of the residue). Less common than residuary but simpler for supporters to conceptualise.
Pecuniary bequest (specific-sum bequest). A fixed dollar amount ("I give $10,000 to..."). Easy for a supporter to commit to, and the certainty can be reassuring. The risk is that inflation erodes the real value over time.
Specific-asset bequest. A named asset, such as shares, a property, a collection, or a vehicle. These gifts can be complex to administer (particularly property) and the value at the time of death may differ significantly from today's value. Always encourage supporters to discuss specific-asset gifts with their solicitor.
For most charities starting a program, leading with residuary and pecuniary options is practical. They are the easiest for a supporter to understand and the most straightforward to administer.
What the law requires
Wills in Australia are governed at the state and territory level, not federally. Each state and territory has its own legislation, for example the Succession Act 2006 (NSW), the Wills Act 1997 (VIC), and the Succession Act 1981 (QLD). The six states plus the ACT and NT each have their own rules, so the legal framework varies depending on where your supporter lives.
Justice Connect / Not-for-profit Law provides free legal resources for Australian charities and is the best starting point if you want to understand the obligations on your side. For your supporters, the key practical points are:
Testamentary capacity. The person making the will must be at least 18 years old (with limited exceptions), of sound mind, and acting voluntarily. A will made under undue influence can be challenged.
Proper execution. The will must be signed by the person making it in the presence of two adult witnesses, who must also sign. The witnessing rules vary slightly by state or territory, and electronic wills are now possible in some jurisdictions under reforms introduced since 2020. A supporter should see a solicitor to make sure the will is validly executed.
The Supreme Court probate registry. After a person dies, the executor applies to the Supreme Court of the relevant state or territory for probate, which is formal authority to administer the estate. This process typically takes months; you should expect to wait six to twelve months or more before a bequest is distributed to your charity, and complex estates can take longer.
Your correct legal name and ABN. This is the most important practical requirement for your charity. The will must use your charity's current registered legal name, exactly as it appears on the ACNC Charity Register, together with your ABN. If your charity has changed its name, merged, or been renamed since the will was written, the bequest may fail or require costly court action to resolve.
None of this constitutes legal advice. Point your supporters to their own solicitor or to their state public trustee service for the actual drafting of a will.
Are gifts in wills tax-deductible?
No. Bequests made through a will are not tax-deductible to the donor or to the estate. This is one of the most common misconceptions about gifts in wills and it is important to get right in your appeal copy.
The $2 tax-deductible rule applies to lifetime gifts made directly to DGR-endorsed organisations, as confirmed by the Australian Taxation Office (ATO). A bequest is not a lifetime gift: it is made through an estate after death, under the terms of a will, and the relevant state Wills Act governs it. The income-tax deduction mechanism does not apply.
Australia also has no inheritance tax or estate tax. Unlike the United Kingdom (where charitable bequests can reduce the Inheritance Tax liability on an estate), there is no equivalent mechanism in Australia. Do not write "leaving a gift in your will reduces the tax on your estate" in any AU appeal: it is factually wrong and could expose your charity to complaints.
The practical implication for your program: you do not issue a tax-deductible receipt for a bequest. Instead, you acknowledge the gift through a warm letter to the executor and, where appropriate, to the family. For how tax-deductible receipts work for lifetime giving, that is a separate process governed by your DGR endorsement.
Does your charity need DGR to receive a bequest?
No. Any ACNC-registered charity, whether or not it holds DGR endorsement, can be named in a will and receive a bequest. DGR status governs whether lifetime donations to your charity are tax-deductible for the donor. It has no bearing on whether a supporter can leave you a gift in their will.
You can verify your charity's DGR status and confirm your correct legal name and ABN via ABN Lookup. Always include your ABN in your suggested-wording templates (see below) so supporters pass the right details to their solicitor.
If your charity is not yet DGR-endorsed and you are considering applying, the ACNC DGR fact sheet explains the relationship between ACNC registration and ATO DGR endorsement.
Build a gifts-in-wills program in seven steps
You do not need a specialist staff member to start a gifts-in-wills program. Many small AU charities have built effective programs with a coordinator and a willing board. Here is a practical sequence.
- 1. Start with a board conversation. Before you ask any supporter, make sure your board understands and supports the program. Cover how gifts will be acknowledged, how they will be held (restricted vs unrestricted), and who is the internal contact for executor enquiries. A brief board policy, even a single page, gives your program legitimacy.
- 1. Confirm your correct legal name and ABN. Check the ACNC Charity Register and ABN Lookup. Make sure every document, template, and ask uses this name exactly. If your charity has recently changed its name or merged, seek legal advice on whether existing bequests made under the old name are still valid.
- 1. Prepare suggested wording for each bequest type. Supporters do not know how to phrase a bequest. Giving them clear, solicitor-ready wording removes the biggest barrier. See the templates in the next section.
- 1. Identify your warmest long-term supporters. The natural audience for a gifts-in-wills conversation is a long-term regular giver, a supporter who has volunteered or fundraised for many years, or someone who has been personally touched by your cause. These people already have a relationship with your work.
- 1. Make the ask gently, in the right context. The most effective asks are low-pressure, written communications: a newsletter paragraph, an EOFY appeal postscript, an in-memoriam acknowledgement. The "cold ask" at a formal dinner is uncomfortable for everyone. Start where there is already warmth.
- 1. Acknowledge and steward, quietly. When a supporter tells you they have included your charity in their will, acknowledge it warmly in writing and keep a confidential note in your supporter database. Never pressure for confirmation of the will's details; a stated intention is not a legal commitment and treating it as one is the fastest way to lose the relationship.
- 1. Plan for receiving and administering a bequest. When a bequest arrives, liaise with the executor promptly, acknowledge the family with care, and record the gift properly. If the gift is restricted (for a specific purpose), make sure you can fulfil the restriction or discuss with the executor before accepting.
Draft suggested wording your supporters can give to their solicitor
These are template clauses only. Every supporter should have their solicitor review the wording before it is included in their will. These templates are provided as a starting point and should not be treated as legal advice.
Your charity's correct ABN is available on ABN Lookup. Replace `[Charity full legal name]` and `[ABN XX XXX XXX XXX]` with your actual registered details.
Residuary bequest
"I give [X]% of the residue of my estate (or the whole of the residue of my estate) to [Charity full legal name] (ABN: [ABN XX XXX XXX XXX]) for its general purposes, and I declare that the receipt of the treasurer or other authorised officer of that organisation shall be a sufficient discharge to my executor."
Percentage bequest
"I give [X]% of my total estate to [Charity full legal name] (ABN: [ABN XX XXX XXX XXX]) for its general purposes."
Pecuniary bequest (specific sum)
"I give the sum of $[amount] to [Charity full legal name] (ABN: [ABN XX XXX XXX XXX]) for its general purposes."
Specific-asset bequest
"I give [description of asset, e.g. 'my shareholding in XYZ Limited'] to [Charity full legal name] (ABN: [ABN XX XXX XXX XXX]) for its general purposes."
For guidance on the legal conventions around bequest wording in Australia, Justice Connect / Not-for-profit Law offers free resources for charities. The sector campaign Include a Charity also provides supporter-facing wording guides that charities can adapt with their own details.
How to talk to supporters about wills without being awkward
Most small charities avoid gifts-in-wills conversations because they feel morbid or presumptuous. The reality is that a well-placed, low-pressure mention is rarely unwelcome to a long-term supporter who already cares about your cause.
The newsletter tick-box. A short paragraph in your donor newsletter, followed by a tick-box reply card or a simple email link, lets supporters self-select without any one-on-one ask. Something like: "Have you thought about leaving a gift to [charity name] in your will? If you would like a copy of our suggested wording, reply to this email."
The EOFY appeal postscript. The EOFY appeal is the natural moment to include a soft mention. A postscript line such as "P.S. If you have ever thought about leaving a gift in your will, we have a short guide for you, just reply and we will send it through" works well and costs nothing.
The in-memoriam moment. When a supporter tells you they are giving in memory of someone, or when a supporter themselves passes and a family member contacts you, this is a natural opening for a gentle conversation about how others can do the same.
What not to do. Do not cold-call supporters to discuss wills. Do not open a gala dinner speech with a bequest ask. Do not send a one-off, standalone "please leave us in your will" letter without any prior relationship context. These approaches feel transactional and damage trust.
The goal of an initial ask is simply to plant the idea and make yourself easy to say yes to. The supporter does the rest, in their own time, with their own solicitor.
Steward pledgers without pressure
When a supporter tells you they have included your charity in their will, it is one of the most significant things a person can do. Handle it with the care it deserves.
The confidential intention pattern. Mature AU bequest programs, including those at Australian Red Cross and Cancer Council, use a "confidential intention" model: the supporter can quietly indicate they have included the charity, without any legal commitment, and the charity stewards them warmly without pressure. You do not ask for a copy of the will. You do not call to check whether the intention is still in place. You simply say thank you, acknowledge the relationship, and keep a confidential note in your supporter database.
Regular givers are your warmest audience. Research and sector practice consistently show that long-term regular givers are the most likely to consider a gift in wills. Someone who has given monthly for a decade has already made a repeated, active choice to support your cause. Beyond Blue, Australian Red Cross, and Fred Hollows all steward regular givers as their primary bequest prospect pool.
Practical stewardship ideas for small charities. Send pledgers your annual report. Invite them to a behind-the-scenes visit or a small supporter gathering (not a formal ask event). Acknowledge milestones (5 years of giving, 10 years). Write to thank them personally once a year. None of this is expensive. All of it reinforces that the relationship matters to you.
What to acknowledge. When a supporter indicates an intention, send a warm, handwritten (or at minimum personally signed) letter. Acknowledge what it means to your cause. Do not make promises about how the funds will be used (unless you are accepting a restricted gift with a specific purpose). Keep it human.
Receive and administer a bequest
When an executor contacts you, the work of receiving the bequest begins. The process is less complicated than many charities expect, but it does take time.
Estate timelines. A straightforward estate will typically take six to twelve months from probate to final distribution. Complex estates, disputed wills, or property-heavy estates can take considerably longer. Plan for this in your cash-flow forecasting; do not budget for a bequest in the year it is notified.
Liaison with the executor. Respond to the executor's initial contact promptly and professionally. Ask for a copy of the relevant clause in the will (you are entitled to this as a named beneficiary). Provide your charity's ABN and bank details in writing. Keep records of all correspondence.
Restricted vs unrestricted gifts. If the will specifies a purpose for the gift (for example, "for the purchase of equipment"), the gift is restricted and you must use it for that purpose. If you cannot fulfil the restriction (perhaps the purpose is no longer relevant to your cause), seek legal advice before accepting. Most charities prefer unrestricted gifts and it is entirely appropriate to say this clearly in your suggested wording templates ("for its general purposes").
Acknowledging the family. A warm letter to the executor and, where appropriate, to the family acknowledging the gift and describing the difference it will make is both courteous and good stewardship. This is not a tax receipt. It is a thank-you letter, and it matters to the people who loved the person who gave.
Recording the gift. Record the bequest in your financial accounts on the date you receive the funds (or an asset), not on the date of death or notification. Consult your accountant or bookkeeper on the correct treatment for your organisation's reporting.
Include a Charity Week and joining the sector campaign
Include a Charity is an initiative of Fundraising Institute Australia (FIA) that runs a coordinated national campaign to normalise gifts in wills. The campaign includes a dedicated week each year, typically in early September, when participating charities run coordinated awareness activities.
Include a Charity Week gives small charities a practical hook for their bequest communications. Supporters who might feel a private conversation is intrusive may find it natural to respond to a campaign that thousands of Australians are participating in at the same time.
To participate, charities can register with Include a Charity, access the campaign toolkit (social posts, email copy, supporter-facing wording guides), and use the coordinated awareness period to introduce or refresh their gifts-in-wills program. Verify the current-year dates and registration details at includeacharity.com.au before making any calendar commitments, as specific dates may shift year to year.
For a small charity, joining Include a Charity costs nothing and provides access to sector-built communications materials that would otherwise require commissioning.
Common pitfalls to avoid
Even well-intentioned gifts-in-wills programs can fail at the point of execution. The most common problems have practical solutions.
Wrong legal name in the will. This is the single most frequent reason a bequest fails or requires legal intervention. If your charity has ever merged, rebranded, or changed its legal structure, check that existing supporters have your current name in their wills. Make it easy for supporters to verify your name via ABN Lookup or ACNC Charity Register.
No ABN in the will. An ABN is not strictly required for a bequest to be valid, but it makes the executor's job much easier and removes any ambiguity about which organisation is intended (particularly for common names or charities with similar names). Always include your ABN in suggested-wording templates.
Residuary vs specific confusion. A supporter who intends a residuary gift but phrases it as a specific amount (or vice versa) may inadvertently create a bequest that does not reflect their wishes. Clear suggested wording reduces this risk.
No stewardship plan. A charity that receives a bequest notification and then fails to steward the pledger over the following years is likely to see the intention lapse. Assign someone to manage pledger stewardship, even informally.
Unclear restricted gifts. A gift with a narrow restriction that your charity cannot fulfil (for example, a gift "for the purchase of a minibus" when your charity no longer operates vehicles) may require court variation or have to be declined. If you become aware of a restriction in advance (for example, through a stewardship conversation), gently guide the supporter toward "for general purposes" wording.
No policy on how bequests are used. When a significant unrestricted bequest arrives, boards can disagree about how to deploy it. A brief policy agreed in advance ("unrestricted bequests go to the reserve fund unless the board resolves otherwise") avoids this conflict.
For practical guidance on bequest governance for Australian charities, Justice Connect / Not-for-profit Law offers free resources and template documents.
Frequently asked questions
What is the difference between a gift in wills, a bequest, and legacy giving?
Nothing significant. All three terms refer to a gift made through a person's will, taking effect after they die. "Gift in wills" is the phrase the Australian sector campaign Include a Charity uses because it is the most accessible for supporters. "Bequest" is the legal term used in wills and court documents. "Legacy giving" or "legacy gift" appears in some charity programs, particularly larger national organisations. Use whichever term feels most natural for your audience, with "gift in wills" as the recommended starting point.
Are gifts in wills tax-deductible for the donor or the estate?
No. Bequests made through a will are not tax-deductible to the donor or to the estate. The $2 tax-deductible rule applies to lifetime gifts made to DGR-endorsed organisations, as set out by the ATO. Australia also has no inheritance tax or estate tax, so the UK-style framing of a charitable bequest reducing estate tax liability does not apply here. Do not include tax-benefit claims in your bequest appeal copy.
Does my charity need DGR endorsement to receive a bequest?
No. Any ACNC-registered charity can be named in a will and receive a bequest regardless of whether it holds DGR endorsement. DGR status governs whether lifetime donations to your charity are tax-deductible for the donor. It has no bearing on bequests. Verify your DGR status and correct legal name on ABN Lookup.
Which law governs wills in Australia?
Wills are governed at the state and territory level. Each of the six states and two territories has its own legislation (for example, the Succession Act 2006 in NSW, the Wills Act 1997 in VIC, and the Succession Act 1981 in QLD). The practical requirements for a valid will, testamentary capacity, proper witnessing, and formal execution are broadly similar across jurisdictions but the specific rules vary. Always direct supporters to their own solicitor or their state public trustee service.
What details must appear in the will for the bequest to reach my charity?
At minimum, your charity's current registered legal name (exactly as it appears on the ACNC Charity Register) and your ABN. Including a brief description of your cause ("for the general purposes of [charity name], which supports...") can also help an executor confirm the correct beneficiary. Use ABN Lookup to confirm your details and include them in every suggested-wording template you provide to supporters.
How long does it take to receive a bequest after someone passes away?
straightforward estate will typically take six to twelve months from probate to final distribution. Complex estates, disputed wills, property-heavy estates, or estates with multiple beneficiaries can take considerably longer, sometimes two years or more. Plan for this in your financial forecasting and do not budget for a bequest in the year it is notified.
Should I issue a tax receipt for a bequest?
No. Bequests are not tax-deductible (see above), so you do not issue a tax-deductible receipt. Instead, you acknowledge the gift through a warm letter to the executor and, where appropriate, to the family. This is a thank-you letter, not a formal tax document.
What is the difference between a restricted and an unrestricted bequest?
An unrestricted bequest can be used by your charity for any purpose, at your board's discretion. A restricted bequest specifies a particular purpose in the will (for example, "for research into childhood cancer"). If you accept a restricted gift, you are legally obliged to use the funds for that purpose. If the restriction cannot be fulfilled, seek legal advice before accepting. Most charities include "for its general purposes" in their suggested-wording templates specifically to avoid unworkable restrictions.
What is Include a Charity Week and how do we join?
Include a Charity is an initiative of Fundraising Institute Australia (FIA) that runs a coordinated national campaign to normalise gifts in wills, including a dedicated week each year typically in early September. Charities can register to participate and access a free campaign toolkit. Visit includeacharity.com.au to confirm current-year dates and registration details, as specific dates vary each year.
Can a supporter include our charity in their will if we are not yet registered with the ACNC?
supporter can name any legal entity in a will. However, if your organisation is not a registered charity and does not have a clear legal structure (for example, as an incorporated association or company limited by guarantee), the gift may be difficult to administer and the executor may face legal challenges in distributing it. Registration with the ACNC, or at minimum incorporation under state law, is strongly advisable before you actively invite bequest gifts. Justice Connect / Not-for-profit Law provides free guidance on legal structures for Australian NFPs.
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