Leaving a gift in your will to a charitable organization is a powerful way to extend your values and positively impact future generations. Many Australians are incorporating charitable giving into their estate plans as a meaningful legacy. However, before making a bequest, it is crucial to verify charity credibility to ensure your gift is used as intended. With over 60,000 registered charities in Australia, doing proper due diligence protects your legacy and ensures your philanthropic efforts are not misdirected or misused.
In this article, we’ll guide you through the steps to verify charity credibility before bequest, offer expert tips, and explain how this process supports safer, more impactful estate planning.
Why It’s Essential to Verify Charity Credibility Before Bequest?
Incorporating charitable giving into your will can bring great satisfaction, but without proper checks, there’s a risk your gift could fall into the wrong hands or be mismanaged. Verifying charity credibility before bequest is essential for several reasons:
- Avoiding fraud or misrepresentation. Not all organisations claiming to be charities are legitimate.
- Ensuring your values are reflected. Verifying a charity ensures its mission aligns with yours.
- Maximising impact. Trustworthy charities use donations efficiently and transparently.
- Protecting your beneficiaries. If a charity isn’t legitimate, legal disputes may arise, potentially delaying the distribution of your estate.
- Fulfilling tax and legal obligations. Some charities qualify for tax concessions that can benefit your estate.
By taking the time to verify charity credibility before bequest, you secure your donation’s purpose and ensure it contributes meaningfully to your chosen cause.
Step 1: Check the Charity’s Registration with the ACNC
Your first step should always be to check if the charity is registered with the Australian Charities and Not-for-profits Commission (ACNC). The ACNC is the national regulator of charities and provides a free, searchable Charity Register on its website.
This register allows you to:
- Confirm that the organisation is currently registered and in good standing.
- View its financial reports and annual statements.
- Learn about its mission, responsible persons, and governance structure.
If the charity you intend to support is not listed on the ACNC register, it’s a red flag—and you should reconsider your bequest.
Step 2: Confirm Deductible Gift Recipient (DGR) Status
Not all registered charities are eligible for tax-deductible donations. To unlock potential tax advantages for your estate, verify that the charity holds Deductible Gift Recipient (DGR) status. This is particularly relevant if your estate will benefit from capital gains tax (CGT) exemptions upon donation.
You can check a charity’s DGR status by searching the Australian Business Register (ABR) or confirming through the ACNC website. A valid DGR designation means the organisation is approved by the Australian Taxation Office (ATO) to receive tax-deductible donations—a key part of smart estate planning.
Step 3: Review Financial Statements and Annual Reports
When you verify charity credibility before bequest, transparency is key. Legitimate charities publish their annual reports and financials to show how they allocate funds. Reviewing these documents can help you assess:
- Whether the charity spends responsibly (e.g., proportion of funds directed to programs vs. administration).
- If it has stable financial health.
- How effectively it meets its mission and goals.
You can usually access this information via the ACNC register or the charity’s official website.
Step 4: Assess the Charity’s Mission and Alignment with Your Values
Before making a bequest, ensure that the charity’s work aligns with your values and vision. Ask yourself:
- Does the organisation support causes that matter to me?
- Is its impact measurable and ongoing?
- Has it demonstrated effectiveness in delivering services or advocacy?
Many donors choose to leave bequests to organisations involved in medical research, animal welfare, education, or community development. Regardless of the cause, verifying charity credibility before bequest ensures your gift supports initiatives you truly care about.
Step 5: Evaluate Governance and Leadership
Strong, ethical leadership and governance are markers of a credible charity. Look for:
- An experienced and accountable board of directors.
- Clear policies on transparency, risk management, and ethical fundraising.
- Publicly available information about senior management and their qualifications.
Well-run charities typically publish this information in annual reports or on their websites. When governance is sound, you can feel confident your bequest will be managed with care.
Step 6: Check for Accreditation and Industry Memberships
Reputable charities often belong to professional associations such as:
- Fundraising Institute Australia (FIA)
- Philanthropy Australia
- Australian Council for International Development (ACFID)
These memberships reflect a commitment to ethical standards, accountability, and industry best practices. When you verify charity credibility before bequest, check whether the organisation adheres to such codes of conduct.
Step 7: Consult Independent Charity Evaluators
Independent charity evaluation platforms like GiveWell, Charity Navigator, and The Life You Can Save assess nonprofits based on transparency, effectiveness, and cost-efficiency. Although most are international, some include or link to assessments of Australian charities.
While not all local charities are reviewed, these platforms can provide helpful context, especially for larger organisations with global reach.
Step 8: Include Clear Details in Your Will
Even after you verify charity credibility before bequest, your legal documentation must be accurate. In your will:
- Use the charity’s full legal name, address, and ABN to prevent confusion.
- Specify the type of gift—fixed sum, specific asset, percentage of estate, or residuary gift.
- Include contingency clauses in case the charity changes names, merges, or no longer exists.
- Clarify if the gift is to be used for a specific program or left unrestricted.
Correctly identifying the recipient ensures your bequest is honoured as intended and avoids legal disputes during estate distribution.
Step 9: Seek Legal and Financial Advice
Working with professionals helps ensure every aspect of your bequest is properly structured. A qualified estate planning lawyer can:
- Verify charity credibility before bequest on your behalf.
- Ensure your will complies with state legislation (e.g., the Succession Act 2006 in NSW).
- Advise on structuring gifts to minimise tax liabilities and legal risks.
Meanwhile, a financial adviser can help you evaluate the impact of charitable donations on your overall estate, especially if you’re considering multiple beneficiaries or using testamentary trusts.
Bonus Tip: Consider Creating a Philanthropic Strategy
Beyond a single bequest, Australians increasingly use long-term strategies to maximise their charitable impact. Options include:
- Testamentary charitable trusts to distribute gifts over time.
- Endowments that support specific programs in perpetuity.
- Donor-advised funds for flexible, ongoing giving.
Regardless of the method, you must always verify charity credibility before bequest to protect your philanthropic vision and ensure your legacy endures.
Real-Life Example
Margaret, a retired nurse from Melbourne, wanted to leave $250,000 in her will to support cancer research. She initially considered a small local organisation but, after reviewing its limited financial disclosures and lack of DGR status, she changed her bequest to the Garvan Institute of Medical Research—a well-established, DGR-approved charity with transparent reporting and proven results. This decision gave her peace of mind and ensured her contribution would make a real impact.
Final Thoughts: The Importance of Due Diligence
Charitable giving through your will is a deeply personal decision and a powerful way to create a lasting impact. But to ensure your gift truly makes a difference, it’s vital to verify charity credibility before bequest. This simple yet crucial process protects your legacy, secures the future of your donation, and prevents financial or legal complications.
At Legal Finda, we understand how important it is to match your charitable intentions with trustworthy organisations. Our team of legal experts can help you navigate this process with clarity and confidence. Whether you’re updating an existing will or creating one for the first time, we’re here to help you make an informed, meaningful contribution.
Explore how to verify charity credibility before bequest with Legal Finda—because your legacy deserves to be protected.
