Drafting for Durability and Flexibility: Charitable Intent Requires More Than Good Intentions

According to Giving USA’s 2025 Report, charitable bequests accounted for approximately $45.8 billion in giving in 2024—underscoring the significant role legacy gifts play in funding charitable organizations nationwide. In the context of estate planning, these gifts reflect more than financial planning; they represent deeply held values and a desire to create a lasting impact.

Donors often include specific conditions in charitable bequests because those gifts are deeply personal—they reflect the experiences, values, and causes that have shaped their lives. For some, that means supporting medical treatment for underserved communities after witnessing gaps in care. For others, it may be establishing scholarships for first-generation students, advancing research tied to a family member’s illness, or promoting access to opportunities that were once out of reach. These restrictions are not simply technical instructions; they are an attempt to direct resources with precision so the gift carries meaning beyond the donation itself. In that sense, highly tailored charitable provisions are often less about control and more about legacy—ensuring that a donor’s story, priorities, and impact continue long after the estate plan is administered.

But even thoughtful planning must operate within a legal and regulatory environment that may look very different at the time the gift is funded. A provision that is clear today can become difficult—or impossible—to administer years later. If that occurs, the charity may decline the restriction, or a court may step in to modify or redirect the gift, often in ways that no longer fully align with the donor’s original intent.

That reality has become more pronounced in the wake of the Supreme Court’s 2023 decision in Students for Fair Admissions, which effectively prohibits universities from using race as a factor in admissions decisions. The practical effects of this ruling quietly reach well beyond higher education, reverberating throughout the charitable sector. Universities, nonprofits, and other institutions, particularly those that receive federal funding, are now reassessing programs, policies, and gift restrictions that rely on race or similar classifications.

For those who have or plan to incorporate charitable bequests in their estate plan, this evolving landscape presents a twofold risk. On one level, a restricted charitable gift may no longer operate as intended if the recipient organization cannot legally or practically carry out the donor’s conditions. At the same time, the issue may extend beyond administration and affect the tax treatment of the gift itself. Federal tax law requires that a charitable bequest be distributed to a qualified §501(c)(3) organization to secure favorable estate tax treatment. If a charity’s policies place it at odds with governing law or established public policy principles, its tax-exempt status could be called into question. If that status is lost before the gift is distributed, the estate may face either a departure from the intended recipient or the loss of the charitable deduction.

This does not mean that charitable giving, whether diversity-focused or otherwise, is no longer achievable. It does mean that charitable provisions should be drafted with greater attention to durability and flexibility. To help ensure your charitable gifts operate as intended, consider the following:

1. Avoid overly narrow restrictions. Gifts tied to highly specific criteria can create challenges at the time of distribution. The issue is not whether the objective is meaningful, but whether it can be carried out under the legal and institutional framework in place at that time. Framing the gift around a broader purpose can help reduce the risk of delay, refusal, or modification.
2. Emphasize purpose over precision. A strong charitable provision should clearly express both what the gift supports and why. Defining the underlying purpose provides guidance if the gift must later be interpreted or adjusted and helps preserve alignment with your intent.
3. Build in flexibility. Charities evolve, and legal requirements change. Including language that allows for reasonable adjustment, such as trustee discretion or compliance provisions, can help ensure your broader goals are preserved.
4. Plan for contingencies. Including an alternate recipient or charitable purpose helps ensure your assets remain directed to causes you support.
5. Revisit charitable provisions regularly. Periodically confirming that both the chosen beneficiaries and the associated restrictions remain workable helps ensure your plan continues to reflect your intent and current realities.

Charitable bequests are more than planning tools—they are a reflection of the legacy you want to leave and the impact that matters most to you. Because these gifts are so personal, they deserve more than good intentions; they require thoughtful drafting and careful attention to how they will function over time. When structured with clarity, flexibility, and long-term practicality in mind, a charitable gift is far more likely to carry out not just the donation, but the purpose behind it.

If your estate plan includes a charitable bequest—or if you are considering one—now is the right time to ensure those provisions remain workable and aligned with both current law and your long-term goals. A thoughtful review today can help protect what matters most: your intent, your impact, and the legacy you hope to leave.

At Cavitch, our estate planning team understands the deeply personal nature of charitable giving and is ready to help review your plan or develop a strategy that ensures your charitable intent endures.