Updated 28 October 2026
CM Law's Ultimate 50 List: Making a Will #32 - How do I leave charitable donations in my will?
How do I leave a charitable gift in a NSW will?
You can leave money, an asset or a share of your estate to charity through a properly drafted and executed will. Identify the intended recipient accurately, specify the gift and plan for changes to the charity. Your solicitor should also consider family provision obligations, available assets and tax consequences.
A charitable gift in a will is commonly called a bequest. It can support medical research, education, animal welfare, religious activities or another charitable purpose. The amount need not be large, but the instructions must work within the rest of your estate plan.
Start with an asset and liability list. Jointly owned property passing by survivorship and superannuation paid directly to another beneficiary may sit outside your estate. A generous promise in a will cannot distribute assets the executor does not control. CM Lawyers’ wills and estates services can help coordinate these arrangements.
Should I leave a fixed sum, an asset or a share of my estate?
A fixed cash gift provides a stated amount, a specific gift identifies particular property, and a residuary gift allocates what remains after relevant liabilities and earlier gifts. The appropriate choice depends on your assets and priorities. Consider how a smaller estate, inflation or an asset sale could affect the result.
Your solicitor can also provide for a charitable gift only if a specified beneficiary does not survive you. Be precise about whether a percentage applies to the entire estate or its residue; these calculations can produce different outcomes.
| Gift type |
How it works |
What to consider |
| Fixed cash gift |
A stated sum of money, also called a pecuniary gift. |
Inflation reduces purchasing power; a smaller estate may struggle to meet all gifts. |
| Specific asset |
Identified property, such as particular shares or an artwork. |
The gift may fail if you no longer own it. Check acceptance, ownership and tax. |
| Residuary share |
A percentage of what remains after relevant debts, expenses and earlier gifts. |
Its value rises or falls with the remaining estate. Specify the percentage and any alternative. |
How do I identify the correct charity?
Use the intended charity’s correct legal name and identifying details, including its ABN where applicable. Check its current registration and contact the organisation to confirm who can receive the bequest. A familiar trading name, local branch or fundraising appeal may not identify the legal entity entitled to receive estate assets.
The ACNC Charity Register helps check registered charities and their activities. Confirm whether you intend to benefit the national organisation, a state entity or a particular fund. For a church, school or community organisation, ask who legally receives and holds gifts.
Check ABN Lookup separately for deductible gift recipient status. ACNC registration and DGR endorsement serve different purposes. A charity need not be a DGR to receive a bequest, but its tax status can affect the consequences of giving particular assets.
Can I require the gift to fund a particular purpose?
You can direct a charitable gift towards a particular purpose, but restrictive conditions need careful drafting. Check that the charity can accept and administer the proposed gift. An unrestricted gift usually permits greater flexibility, while a restricted gift or charitable trust may require continuing administration, reporting and a workable alternative.
Discuss the proposed project with the charity before finalising your will. A scholarship, building project or research programme may change or end before the gift becomes available. Distinguish a binding restriction from a non-binding preference, and decide what should happen if the original purpose becomes impractical.
A broad charitable purpose is not automatically invalid. However, leaving the executor unclear about recipients, powers or permitted spending can require legal interpretation. Have a solicitor settle the wording rather than relying on an informal letter or a charity’s template without reviewing the whole will.
What happens if the charity closes or merges?
A charity’s closure or merger does not automatically entitle the executor to choose another organisation. The will’s wording, the recipient’s legal continuity and the nature of the gift must be examined. A properly drafted successor or alternative beneficiary clause can help, while some gifts require a formal charitable scheme.
NSW law provides mechanisms for applying charitable property cy-près: broadly, towards a suitable charitable purpose where the original arrangement cannot operate as intended. The appropriate process depends on the circumstances; it is not a general licence to rewrite the will.
The NSW Government’s charitable trusts guidance explains applications involving organisations that have ceased, amalgamated or changed their name or objects. Executors should obtain advice before redirecting funds. Review your own will when you learn of such changes.
What does a real NSW case show about charitable bequests?
A charitable gift can survive an outdated recipient name and the organisation’s later dissolution, but court assistance may be necessary. In John Greer v Attorney General for New South Wales, the Supreme Court identified the intended foundation and approved a cy-près scheme. The result depended on the will and evidence.
In John Greer v Attorney General for New South Wales [2018] NSWSC 725, Duncan James Bassett left three twentieths of the balance of his residuary estate to The Avondale College Foundation. The organisation had changed its name to The Avondale Foundation and dissolved after his death.
The Court found that the gift was for charitable purposes benefiting Avondale College and had not failed. It ordered payment to Avondale College Ltd under a cy-près scheme. Proceedings costs were payable from the estate; the judgment does not give a final dollar total. The practical lesson is to verify legal identity and plan for organisational change.
Are charitable gifts in a will tax deductible?
A charitable gift made under your will is not an income-tax deduction, even if the charity is a deductible gift recipient. Australia has no inheritance tax, but income tax and capital gains tax can still affect an estate. The asset given and the recipient’s tax status both matter.
Section 30-15(2) of the Income Tax Assessment Act 1997 excludes testamentary gifts from the ordinary gift deduction. Do not assume the rules for donations made during your lifetime apply to a bequest.
An asset passing to an income-tax-exempt charity can trigger CGT event K3. A separate exemption under section 118-60 can disregard a gain or loss on a qualifying testamentary property gift. Selling an asset and paying cash can produce a different outcome from transferring the asset itself. Ask your solicitor and tax adviser to check the proposed structure, including whether DGR endorsement covers the organisation or only a particular fund.
Can family members challenge a gift to charity?
A charitable bequest does not prevent an eligible person from seeking family provision under the Succession Act 2006 (NSW). The Court considers whether adequate provision has been made for that person’s proper maintenance, education or advancement in life. If an order is justified, it can reduce funds otherwise intended for charity.
Eligibility is defined by legislation; disagreement with your choice is not enough. Applications generally must be brought within 12 months of death, although the Court can permit a late application. Estate size, competing claims and the applicant’s circumstances all matter.
Discuss family responsibilities openly with your solicitor. A factual statement explaining your charitable commitments and decisions can provide relevant evidence, but it cannot remove another person’s statutory rights. Review substantial gifts when relationships, dependants or financial circumstances change.
What should I check before signing or updating my will?
Have a solicitor review the complete will, the charity’s details and the proposed gift before signing. Follow NSW execution requirements carefully, retain the original securely and tell your executor where it is kept. An online form or correctly named charity does not cure defective witnessing or an unclear estate plan.
Under the Succession Act, the usual signing process requires you to sign or acknowledge your signature before two witnesses present together, who then attest and sign in your presence. Use independent, suitable witnesses and obtain advice if remote witnessing is proposed.
Before your appointment, prepare:
- The charity’s legal name, ABN, contact details and any suggested bequest wording.
- Your proposed amount, asset or percentage, any restrictions and your preferred alternative.
- Your existing will, asset ownership details and information about people who may need provision.
An executor must also address debts, tax, administration expenses and claims before distributing the gift. Contact Christine Manolakos at CM Lawyers to discuss drafting or reviewing your charitable bequest.
General information about NSW wills. Always have your will and proposed gifts checked by a lawyer, with tax advice for your circumstances.
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