As a nonprofit, you depend on the generosity of donors to further your mission and carry out the important work you do in the community. When a charitable donation is made in a will or trust, it’s meant to leave a lasting legacy. However, inheritance disputes can arise when heirs challenge these gifts. For organizations like yours, when inheritance disputes and nonprofits collide, this can disrupt your organization’s plans and put a significant strain on your resources.
“Donations are legacies built on trust and intention,” said Ali L. Nicolette, an Associate at Gokal Law Group who brings a range of litigation experience, volunteers in her community, and has earned recognition for her extensive pro-bono advocacy work. “When disputes over inheritance arise, those legacies are at risk, along with the vital work your organization does for the community,” she said.
Understanding Inheritance Disputes: Why Are Heirs Challenging Your Endowment?
If you’re navigating the complex terrain of inheritance disputes and nonprofits, you must understand how these disputes arise, the steps to protect your nonprofit, and how legal support can help navigate this complex terrain. Here’s your guide.
Feeling Disinherited or Cheated
In many cases, heirs may feel they are entitled to a larger portion of the estate, and this is one of the most common reasons for the convergence of inheritance disputes and nonprofits.
If they perceive a charitable donation as unfair or feel that it undermines their inheritance, they may challenge the gift to your nonprofit. It’s a common emotional response, especially when significant portions of the estate are left to charity rather than family.
But that doesn’t mean you aren’t entitled to the gift that was left behind for your organization.
Suspicions of Duress & Undue Influence
In some cases, heirs may believe that the donor was improperly influenced when making the decision to leave a gift to your nonprofit. This is known as undue influence. They might claim that the donor was coerced, manipulated, or pressured into making a charitable bequest.
These claims can arise when the donation is substantial or when the donor’s relationship with the nonprofit was not widely known.
Concerns About Mental Capacity
Another common reason for contesting a gift is the allegation that the deceased did not have the mental capacity to make sound decisions at the time of the bequest.
Heirs may argue that the donor was not of sound mind or was suffering from a mental or other condition that impacted their ability to make the gift.
How Can Your Non-Profit Protect the Charitable Gift?
While an inheritance dispute can be unsettling, there are proactive steps your nonprofit can take to defend the integrity of the gift and minimize the impact on your mission.
Document the Donor’s Intent
One of the most important ways to protect a gift is by clearly demonstrating the donor’s intent. Gather written communications, such as letters, emails, or text messages, that reflect the donor’s wishes.
This can include documented conversations about their desire to support your nonprofit. A clear, documented connection between the donor and your organization can help demonstrate that the gift was made with full awareness and intention.
Work With an Experienced Attorney
It’s essential to consult with a knowledgeable trust and probate litigation attorney who understands both the legal complexities of inheritance disputes and the nuances of how nonprofits navigate legacy gifts and endowments.
A skilled attorney can provide you with guidance on how to protect your interests and the donor’s intentions, ensuring your organization is properly represented.
“With the right legal guidance and a clear focus on your mission, your nonprofit can navigate inheritance disputes with integrity, preserving both the donor’s legacy and your organization’s future impact,” said Nicolette.
Show the Donor’s History of Support
Establishing a long-term relationship between the donor and your nonprofit can provide important context for the gift. If the donor was an active supporter, volunteer, or long-time donor, this can strengthen your case by showing that the gift was consistent with the donor’s history and values.
Highlighting this history can help prove the authenticity of the bequest, as can getting witness testimony to ensure their intent.
Related Article: What is the Role of an Expert Witness in California Trust Litigation?
Be Transparent and Communicative
Throughout the process, it’s vital to maintain open and respectful communication with the executor of the estate or the trustee of the trust, as well as any family members involved in the dispute. It is even more important to have an attorney represent you during these conversations, so that your position is clearly articulated and protected.
Transparency about your nonprofit’s role in fulfilling the donor’s wishes will help maintain trust and show your commitment to following the donor’s desires.
Protecting Your Mission and the Donor’s Legacy
When inheritance disputes and nonprofits mix, these situations can be incredibly difficult to navigate, especially without representation. With the right approach and legal guidance, your nonprofit can safeguard the gift and continue its important work. By documenting the donor’s intent, working with an experienced attorney, and maintaining open communication, you can protect the future of your organization and ensure the donor’s wishes are upheld.
At Gokal Law Group, we are committed to supporting nonprofits in times of legal challenge. Our team of compassionate and experienced attorneys is here to help you defend the gifts that enable you to continue making a positive impact in your community.
If you’re facing an inheritance dispute or need assistance with protecting a charitable gift, contact us today. We’re here to provide the legal support and peace of mind you need.
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