When Willing it to Happen isn’t Enough
This is not intended to be morbid. Given all that’s transpiring in the world, several of us in fundraising roles within non-profits are hearing from individuals who are organizing their estates. It’s comforting to families to have things mapped out. Some individuals are remarking on how — in my case — Michigan State University is in their estate. This is always wonderful to hear, but problematic when I see no evidence MSU is aware of this fact beyond the conversation the person is having with me.
If you have a non-profit designated in your estate, I encourage you to take steps to document your intentions with the non-profit. It’s a formal process that requires more than an email or phone conversation. Sign an agreement with that organization that notes what you believe to be coming from your estate and how you want it used by that organization. It can be revocable. If preferences or circumstances change over time, you don’t have to be stuck.
If you don’t do this step, at least three problems can surface when your estate notifies the non-profit of your gift.
One, if you didn’t make it clear where the funds are to be applied within the non-profit, it’s possible your gift will be directed at generic discretionary accounts. That’s not an awful outcome if that’s what you want. Usually people have something specific in mind that they want to fund. This is especially true with a large organization like MSU. People may care about specific student programs or research, for example.
Two, if you are specific in your will, but haven’t set up confirming agreements with the non-profit ahead of time, your estate may learn at the time of transition that what you wanted isn’t feasible. The non-profit may not be set up to honor your request. That’s something that, if discovered in the planning process, can be effectively addressed and alternatives sourced.
Three, what you decide to do with an anticipated amount of money based on limited information of what the organization plans to do for the future — and needs to get there — may be entirely different than what you would choose to do if you engaged in an intentional conversation with the organization. When people have these conversations, they are often surprised what they are in a position to help a non-profit accomplish.
In addition to avoiding the potential problems associated with not having a documented plan, if you do document your intentions with the organizations you plan to support from your estate, you get to experience the stewardship of that gift in your lifetime. That doesn’t have to mean any level of attention that is uncomfortable to you. If recognition is awkward, consider documented gifts may create more opportunities for you to offer feedback on the direction of the organization, to attend special events and to meet those associated with the areas of the organization you intend to support.
I’ll hop off my soapbox. I wanted to offer this information to help those of you thinking about these types of things. Prior to the work I am now doing, none of this would have occurred to me. If anyone is in this situation with Michigan State University, I’m happy to find the right person for you to get it sorted it out with. Please message me privately via lisap(at)msu(dot)edu versus commenting below.
