How to make a will for non-profit organizations

More and more people, when planning their wills, choose to allocate part or all of their estate to non-profit organizations. Making a testamentary bequest in favor of charitable entities allows individuals to uphold their values and support causes they deem important, even after their passing. But how does it actually work, and what should you know to include a non-profit association in your will?

Why leave a bequest to a non-profit

Leaving a bequest to a non-profit entity can bring numerous benefits—not only for the organization, which will be able to continue funding its projects, but also for the testator’s family, who will see their loved one's memory live on through acts of solidarity. Moreover, it is a meaningful way to support initiatives one deeply believes in, leaving a positive legacy.

Types of bequests to non-profits

There are various types of bequests, allowing the testator to choose the method best suited to their needs:

• Cash bequest: A fixed sum of money can be allocated to an organization. This is a common and straightforward way to support a non-profit financially.
• Movable property or real estate: Beyond money, one may bequeath tangible assets such as houses, land, vehicles, or jewelry. These require more complex management, and the association may sell them to fund its activities.
• Shares or stock holdings: If the testator owns company shares or stocks, these can be left to a non-profit. The organization can then benefit from dividends or other related income.
• Insurance policies: A lesser-known option is to name a non-profit association as the beneficiary of a life insurance policy. This method allows the transfer of money without the need to amend the will.

How to draft the will

A will that includes a bequest to a non-profit must meet specific legal requirements. Key steps include:

• Choosing the appropriate type of will: You may opt for a holographic will (entirely handwritten) or consult a notary for a public will. The latter is often recommended to avoid risks of invalidity.
• Being specific: It is crucial to clearly indicate the beneficiary association and the type of bequest. Include all necessary identifying details to avoid potential disputes or ambiguities.
• Respecting the reserved portion (quota di legittima): The testator must consider the rights of the so-called "forced heirs" (legittimari in Italian law)—such as the spouse, children, or, if none, ascendants. These individuals are legally entitled to a portion of the inheritance, so only the remaining share may be freely bequeathed.

Tax aspects of testamentary bequests

In Italy, bequests to non-profit organizations benefit from tax advantages. In particular, assets left to entities recognized as ONLUS or Third Sector organizations are exempt from inheritance tax. This means the full value of the bequest can be used by the organization without any deductions, making the contribution even more valuable.

What to do before choosing a beneficiary organization

Before naming an association in your will, it is advisable to gather detailed information about the entity and its projects. Ensuring it is a transparent and reputable organization is essential for guaranteeing that your bequest is used effectively. Some helpful steps include:

• Verifying that the association is registered and has a proven track record.
• Requesting information on how donated funds are used, if available.
• Considering informing the organization of your intention. Many offer advisory services for donors and can help clarify any questions.

A final thought

Making a testamentary bequest to a non-profit association is a generous act that can leave a lasting impact. Carefully planning your will in compliance with legal requirements allows you to turn your wish to support charitable causes into a reality, without affecting the rights of your heirs. With a small gesture, you can leave a positive mark and help create a better world.

For further information or assistance with drafting a will, you may contact Agenzia delle Successioni, which offers dedicated support to individuals navigating inheritance matters.