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  • 1.  Bequest Write Offs

    Posted 08-13-2025 02:54 PM

    Hi, was wondering how others would handle the following:  donor gave a bequest of 500K three years ago but then donor now decides they want to give a current gift of cash, stock, etc. rather than through a bequest.  The 500K was counted toward production in past year(s) but now not being funded through a planned giving instrument.  Would you write off the bequest entirely and book new current gift(s) when they come in, apply current gifts to bequest pledge or apply up to 500K of current gifts to bequest pledge and only count anything over for the current year?  Any CASE guidance on situations such as this?

    Thank you!



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    Dena Toth
    Medical University of South Carolina Foundation
    tothd@musc.edu
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  • 2.  RE: Bequest Write Offs

    Posted 08-13-2025 03:13 PM
    The short answer is "all of the above."

    There isn't any CASE guidance on this, which means organizations have developed a protocol that best suits them.

    But much also depends on exactly what the donor tells you.

    For example, if a donor states they want to start "pre-paying" on their bequest, you may be inclined to leave the bequest expectancy as it is and apply those pre-payments like you might a pledge payment. This works fine until the donor dies. Their will was never adjusted, as payments were made. The executor then sends you the original amount, which, ethically, you must return.

    But if the donor tells you they have removed the original bequest and want to start sending you cash, you have no choice but to delete the bequest expectancy. However, you then run the risk of double-counting if the bequest was made during one campaign and now the donor decides to send outright gifts during a new campaign. That could be considered counting the "same" gift in two campaigns. In this case, I would ask the Gift Acceptance Committee to determine the proper counting protocol.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Bequest Write Offs

    Posted 08-13-2025 03:27 PM

    Thanks, John!  The donor did request to "cancel" their bequest but again this planned giving pledge was counted in a prior year.  Was just wondering if current gifts were not coming from an planned giving vehicle (estate, trust, etc.) if that changed on a counting perspective.



    ------------------------------
    Dena Toth
    Medical University of South Carolina Foundation
    tothd@musc.edu
    ------------------------------



  • 4.  RE: Bequest Write Offs

    Posted 08-13-2025 03:42 PM
    No, not really. In your case, it's all the same gift regardless of the giving vehicle. The donor wants to change the original vehicle by canceling it and giving you a new vehicle now.

    CASE tells us you cannot count the same gift in two different campaigns. That's what this amounts to, other than the difference in giving method. Your leadership will need to determine what is proper and ethical. Unless you wanted to restate your official totals from three years ago (not typically done), my advice to your leadership is to not count the new gifts in campaign totals, other than those received over the bequest amount. However, for VSE purposes, you can report the realized cash.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987







  • 5.  RE: Bequest Write Offs

    Posted 08-13-2025 03:47 PM

    Thanks again...very helpful!



    ------------------------------
    Dena Toth
    Medical University of South Carolina Foundation
    tothd@musc.edu
    ------------------------------



  • 6.  RE: Bequest Write Offs

    Posted 08-13-2025 04:36 PM
    Dena, earlier, I referenced the "don't count something twice" rule from CASE. While I understand that your situation is nuanced, I wanted to share the precise list of campaign counting fundamentals found on page 68 of the current standards:

    image.png

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987