Writing our will - which charity

[whichcharity]

NC for this post.

We are very fortunate and have a large estate, we are in our 50s and both work and are rewriting our wills.

We have two children who will be left the majority of our estate when we die (we do not have other family or close friends)

Our children are likely to be come very wealthy when we die. We want to ensure that they get some of our estate but a large proportion we would like to leave to charity, and should the unthinkable happen and we all die, the majority to charity.

We will discuss this with our children (currently at university) and we believe they will support this decision as they, like us, would want to work and not be left sums of money which would mean they would never have to work again.

Obviously we will revisit our wills as time goes on etc.

We already have some local charities that we support but the sums involved are likely to be considerable, we will leave money to the charities we know and support but we would like to add in some larger charities.

We are currently thinking Children in Need and medicine sans frontieres.

Does anyone have any knowledge about how we can actually find out how effective charities are, or charities similar to these where we know our donations will be put to good use.

please no judgement about this, we do already support many charities and we have not inherited this wealth but built it up ourselves (and on reflection perhaps should have spent less time working and more time living)

Thank you for any help specific to effectiveness of charities.

Give your money to your kids (when you eventually die) and give your time whilst you're alive to charities.
Charities are often looking for volunteers and trustees. Be a trustee of some local charity might mean as much as a large legacy and could be immediate.

Thank you for all of the comments. We did not expect so many. The vast majority of opinions have been hugely helpful, thank you.

What we have taken away from this is as follows;

we plan to live now now and worry less. I was planning on semi retiring, and I will put much of my effort in leaning about local charities and we plan to increase our current gifting now rather than later.
(as an aside to the poster who suggested we should start volunteering now, I have done so for decades and already donate to those charities, but I won’t justify what we have done to date)

any charitable donations in our will, we will leave as a fixed amount rather than a percentage.

the suggestions about setting up bursaries etc were particularly useful.

and thank you to the poster who suggested
the philanthropic family trust suggestion. We will definitely look into that.

thank you again for all the comments and suggestions.

But giving away large sums now depletes the OPs wealth that, presumably, they live off.
Giving away thousands every year is one thing, but millions should wait until they no longer need the interest payments. The OP isn't suggesting she wants to live in penury.

It’s a huge commitment to set up and run a grant making charity and a lot of money will be diverted to overheads such as dealing with the charity commission, managing the endowment, and dealing with appeals from charities, even if you decide not to accept unsolicited applications.

Perhaps giving funds to be managed by a community foundation would make more sense.

He paid his own way.
Donated his car to the charity when he got 5here.
NONE of the international aid got anywhere near the refugees

If I was in this position I'd be looking at local hospices, small animal rescues and the air ambulance service

What I meant was the money he spent on airfare and to the organising team would have covered local workers' costs. But your reply just highlights why it's so important to investigate charities properly if you want to make a tangible difference. Those poor refugees.
I always wonder if the women receive the period products that are advertised on the back of loo doors in motorway services. Or do the payments just get swallowed up in the enormity of it all.

@whichcharity
Don't forget to calculate out inheritance tax.
Also is a percentage not better for charities? Say you leave £50k to a charity but for some reason...care home fees etc your estate is now only £100k the family only get £50k less any legal fees but if you leave 10% then the charity only gets £10k and your family the rest.

Locals were not being offered any employment or wages. Intermational aid went only to pay the soldiers guarding the camp.
Only volunteers actually helped the refugees.

Exactly

My personal choices would be:
Freedom From Torture , who provide support services and therapy for victims of torture, because I can think of little worse than being helpless and brutally tortured, and those that survive and flee seem to be the least economically advantaged
The Mountain Rescue Teams , because they have always been there if needed (thankfully not, so far) so reassurance for my favourite holiday activity, and they are 100% volunteer run
A particular arts organisation that I have been associated with, to do work with young people and community, work that I have seen to be transformative, and funding for the sector is diminishing
Women’s Aid - because of the hundreds of suggestions we see on MN to contact them for much needed help.

OP: I would also put the money you intend for charity in a charitable trust now, and ringfence it. Talk to a wealth / inheritance / estate planner. It is leaving a bequest as a % that obliged charities to check / pursue the correct % including if assets.

Percentage vs specified amount

The danger of leaving a specified amount is that if the value of the estate drastically decreases, the specified amount will still be paid out and the recipients of the remainder will receive far less than originally intended.

For example, if you write your will while your assets are worth £2m, and state you want to leave £500k to Charity X and the remainder to be split among your children (£1.5m at the time of writing the will), if by the time you die your estate is only worth £700k, the charity will get £500k and there will only be £200k left to split among your children.

Ask your solicitor how to structure the will to avoid that, and how to avoid the risk of the executors being hounded by charities. You can specify different types of assets, eg cash savings or investments (liquid assets?), and only include those in the bequest to charity. Don't leave them any personal property or a business that will need to be sold.

Apparently charities can be awful and will insist on their monies first, no matter what. Other beneficiaries have been left with absolutely nothing. I watched a documentary on it and apparently it’s rife within this sector. Remember that the CEOs get massive salaries and a lot of your money will pay their wages (and the staff) whilst not much will go to funding the actual charity.

However, with that in mind…I still intend on leaving something like a Sainsbury’s gift card or cheque for my son to spend on a large shop for our local food bank. We already support them so I know that anything which is purchased will be used directs by the recipients.

I'm specifying amounts for human beneficiaries and four charities (small, local, having checked their accounts), then any residue to go to two of the humans and two of the charities.

I'm aware of what's involved. I'm a trustee of a grant giving charity. It's absolutely one of the most satisfying things I do. I regularly do charity commission returns- they aren't that onerous. But yes of course the op would need to investigate properly before deciding to go down this route

Remember that the CEOs get massive salaries and a lot of your money will pay their wages (and the staff) whilst not much will go to funding the actual charity

This is a huge generalisation @BeefAndHorseradishSandwich .
I’ve worked in enough charities not to be naive. Yes, there is waste and poor practice. Some charities lose their way. But the answer is good leadership, not demonising CEOs.

You can fund a specific activity (e.g. a holiday, food, whatever) with a restricted donation (and that would be very welcome and reach the beneficiaries directly) or you can invest in the charity so that it can provide these services for years to come.

What any charity professional will tell you is that they need consistent support and unrestricted funding.

I would look at Giving What We Can and GiveWell for advice about effective philanthropy.

I only donate to local volunteer led animal charities. If you leave money in your will to big name charities your executors will be hounded constantly for the money. Another PP is correct about CEOs on huge salaries and 100s of employees. Looking at you, certain Armed Forces charities who are sitting on millions yet very reluctant to part with any of it, despite their claims 😡

I couldn’t agree more. OP, do your research. Read the online stories about this. Don’t leave problems for your children. My Aunt’s husband left his estate to her to use in a trust. This included provision for care home fees. After her death the remainder of the estate was to be given to charity. Fortunately, we had heard about the horror stories and engaged a specialist trust solicitor who was used to dealing with charities. He knew all about these horror stories. We had to sell the house to provide an income for care home fees for my Aunt. Fortunately we bought the investments at the right time and they went up so the charity couldn’t query this. Believe me they will hire top lawyers and keep appealing if they even get the glint that you haven’t invested properly.
OP, you are young. By the time you go you will probably have grandchildren. Leave it to your children for now with wishes that they give some to charity. They can always do a deed of variation to do this. When you are older you can change your will.
I think it is a bit strange to come on here and ask about what are good charities. We will all be guided by things that have affected us in out lives. My husband and I have a friend who gives significant amounts of money to charity. He certainly investigates them before he donates. He looks at their books and sees where their money is spent.

I had 3 charities in my will until I became involved in a related area of work and discovered how ineffective and not very ethical they were. I think we have a rosy view of charities.
Scandal’s unfortunately come out later - Oxfam, anyone?

And research BBC Children in Need. They seem to be little more than a grant making body. They gave money to Youth Scotland, a Scottish charity for LGBTQ+ people aged 13-25, the CEO of which was running a major paedophile ring.

I agree with others: give money locally, and give it NOW while you can because many small charities are struggling.

Other than that, I think it’s actually hurtful to cut your kids and grandchildren from the major part of your estate right now. You no idea what could happen to any of them, or indeed, what scandal may arise in future around a charity. I’m absolutely baffled as to why you would not secure them first. Maybe as part of your will you could instruct that a small donation could be given to a charity of your children’s choice - let them each pick one, and have a share of the amount sent.

I think you’re underestimating the level of wealth! They can do allllll the holidays and care packages and still have a fuck tonne left

I would absolutely leave to your children to act on your wishes for a charitable donation or put that money into a trust to be administered according to trustees with expectations to fund certain types of work.

A charity that exists now may likely not exist in 30 years when you die. Or may go downhill and be really dodgy. Your children may wish to support a charity that really helped you or them for a condition you don’t even know about. You may end up with a grandchild with complex needs whose care you may want to fund. If you were 75, yes, I’d be thinking about it. Not in your 50s. There’s too many unknowns still.

I’m 45. I was healthy and financially well off, until I got cancer and then suddenly I wasn’t. A lot can change and can change in a matter of weeks. I would not lock yourself into long term financial decisions that are not flexible enough to undo in the event you need to undo them for whatever reason.

Oxfam
Children in need
No surprises there.

If ypu go and speak to an estate planner they will navigate all of this for you. You prioritise your beneficiaries and use trusts.

I think if I if was in your situation and wanted to donate to charity I’d donate to local hospices (adult and children) and the air ambulance too. They’re all absolutely vital services for everyone and anyone but really need the funds.

Or I’d look at setting up links with local schools or community projects to help support them long term.

I think I’d also want to secure a certain % in trusts for future grandchildren to benefit too.

Big charities like CIN have a lot of money already personally I’d look at other ways to have a bigger more guarantee impact and lasting legacy.