Does a charity need to formally keep records of donors who have advised them they want to make a bequest in their will? I know it's a good idea but we just had a donor call us to ask for our EIN and address on the advice of her attorney. She would not give us any information about herself.
A lot of charities make a big deal out of their legacy societies and honor, while they are still living, donors who want to make a planned gift upon their death. It is a good idea to keep in touch with them because some studies show that most wills are changed within five years of their execution, many within the six months of the individual’s death. You don’t want to be forgotten when the final operative instruments are written and executed.
One British study showed that 64% of donors who included a charity in their will did not tell the charity in advance. Anecdotally, some of the biggest bequests to charity make the news because they came completely out of the blue. Some people apparently want to be supportive but don’t want to be besieged with a whole lot more stuff from you.
An attorney asking for your EIN probably wants it to be sure that a bequest intended for your organization actually gets to your organization, not to some other group whose name sounds like yours, and even if you move between now and then. The EIN is public information on your Form 990 tax information return and your listing on the tax-exempt organization search system at the IRS so there is no reason to be hesitant about giving it out.
A legacy pipeline report is a fine idea, but is not a very reliable planning tool. Not all of the expectations will be fulfilled, and unknown others are likely to arrive. Your job is to make it as easy as possible to get in the pipeline, whether you know it or not.
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