When is Right Wrong?
A long-time donor contacts a nonprofit group and tells them that he would like to leave his entire $4 million estate to the organization. He has no direct heirs. He is elderly and has had a stroke, which has affected his hearing and handwriting; however, he is clearly sharp, intelligent, and competent.
The donor has asked his attorney for assistance. When the nonprofit makes contact with the attorney it becomes very apparent that the “right-wing” attorney is politically opposed to the liberal cause the nonprofit represents. He openly expresses skepticism about the donor’s choice to give them his estate, and says he is suggesting that he (the attorney) become the executor. While the donor has specifically stated, in front of witnesses, that he wished to give his estate to the nonprofit, many months have now passed and the attorney has taken no action saying he was “busy.”
How does the planned giving officer proceed in this situation, both with the donor and the attorney?
Model Standard I states that the principal basis for making a charitable gift should be a desire on the part of the donor to support the work of charitable institutions. Model Standard VI says that a gift planner acting on behalf of a charity shall in all cases strongly encourage the donor to discuss the proposed gift with competent independent legal and tax advisers of the donor’s choice.
Are the standards in conflict in this case? What is “competent” legal advice? Who makes that judgment?
