How to Bequeath Your Estate to a Nonprofit Organization

Donating a portion of one’s estate to a cause that is close to one’s heart is a deeply generous act. However, bequeathing one’s assets to a nonprofit organization cannot be done on a whim and is subject to specific legal rules. 
 

Understanding the Difference Between a Gift and a Bequest
It is essential to clearly distinguish between these two methods of asset transfer. A gift is made during the donor’s lifetime and takes effect immediately: as soon as the deed is signed, ownership of the asset changes. In contrast, a bequest is a testamentary provision that takes effect only upon the testator’s death. This temporal distinction has significant implications for estate planning and applicable taxation.
 

A bequest offers the advantage of revocability: as long as the testator is alive, he or she may modify or revoke the provisions of the will. This flexibility allows the testator to adapt his or her estate planning strategy in light of changes in his or her personal, family, or financial circumstances. It is a permanent, free, and unconditional means of asset transfer that can apply to a wide variety of assets: cash, real estate (residential homes, farmland, commercial properties), securities portfolios (stocks, bonds, mutual fund shares), works of art, jewelry, or any other tangible personal property.
 

The law distinguishes three categories of bequests based on their scope. A universal bequest covers the entire estate of the deceased: the universal legatee receives all of the testator’s property, rights, and shares, but also assumes all debts. A bequest by specific share concerns a portion of the estate, for example, “half of my property” or “all of my real estate.” Finally, a specific bequest pertains to a specific asset: “my country house located at such-and-such address” or “my stock portfolio held with such-and-such brokerage firm.”
 

Organizations Authorized to Receive Bequests
Not all organizations can receive bequests or donations. The legislature has strictly regulated this legal capacity to prevent abuse. Only certain categories of organizations are authorized to accept gifts. Charities and foundations recognized as being of public benefit top the list: this recognition, granted by decree following an opinion from the Council of State, automatically confers the capacity to receive bequests and donations. These organizations are subject to rigorous government oversight.
 

Nonprofit organizations serving the public interest may also receive donations if they meet certain tax requirements. They must be managed in a disinterested manner, their activities must be nonprofit, and their work must not benefit a limited group of people. Public entities (municipalities, departments, regions) and public institutions (hospitals, universities) also have this capacity. Finally, certain religious institutions recognized by law may receive bequests, within the framework defined by legislation governing religious organizations.
 

Steps to formalize a bequest
First and foremost, you should verify that the chosen organization has the legal capacity to accept bequests. This information is generally found in the organization’s bylaws, on its website, or can be confirmed by consulting the Official Journal of Associations and Corporate Foundations (JOAFE). A notary can also perform this verification. This preliminary step is crucial: a bequest made to an unauthorized organization would be legally invalid.
 

Compliance with the reserved share is another key consideration. Under French law, a portion of the estate must be set aside for heirs entitled to a reserved share (descendants, or the surviving spouse in the absence of descendants). The testator may freely dispose of only the disposable portion, which varies depending on the number of children: 1/2 with one child, 1/3 with two children, 1/4 with three or more children. A bequest exceeding the disposable portion may be reduced at the request of the heirs entitled to a reserved share.
 

The choice of will format is also crucial to its validity. A holographic will—entirely written, dated, and signed by the testator’s own hand—is the simplest form but carries risks: drafting errors, lack of legal advice, and the risk of loss or destruction. A notarized will, drawn up by a notary in the presence of witnesses, offers maximum legal certainty: the notary verifies the testator’s legal capacity and the validity of the provisions, and retains the original. Using a notary is strongly recommended, particularly for substantial bequests.
 

Tax Benefits for Donors
Generosity can be encouraged through tax incentives. Donations made during your lifetime to organizations of general interest or recognized as being of public benefit entitle you to a substantial income tax deduction. For donations to organizations that assist people in need, the deduction can be up to 75% of the amount donated, up to a limit of 1,000 euros. Above that amount, the reduction rate is 66%, capped at 20% of taxable income.
 

It is recommended that you inform the beneficiary organization of your intention, even though this is not legally required. Doing so allows the organization to confirm its ability to accept the bequest and to direct you to its bequests and donations department. Be sure to update your will every three to five years to reflect changes in your personal and financial circumstances.