The Most Special Way to Donate – Through Your Will

Have you considered donating a sum of money, unused items, or a percentage of your estate to a local charity in your will? Charities and non-profit organizations do so much good and vital work for local communities.

They often rely heavily on private donations. These organizations help to fill the gaps in providing for and uplifting local communities in areas where government assistance often falls short.

Donating even a small amount of money or a percentage of your estate in your will is a special gesture that can make a lasting difference. In this way you support a charity in their mission to uplift and educate the community in various ways.

Donating to a local charity in your will is giving back to the community you lived in, in a way that ensures that people will be on the ground making a difference in that community.

A strong community helps provide a better future for all, charities are major players in lifting spirits in times of need. A donation from a will is one of the most special ways of giving. The main reason is that your chosen charity cannot say thank you to you they can only receive and do their work in the community. This has long reaching impacted if it becomes more common in will drafting fields.

There are also potential tax benefits of donating to a charity in your will. Upon the death of a person, various taxes, such as income tax and estate duty, may be payable. However, bequests to certain charitable institutions in a will may be either exempt or deductible for tax purposes.

Donations Tax Benefits

Anything that is given away for free or at a largely discounted price is regarded as a donation and may be taxable. Donations tax is calculated at a flat rate of 20% on any donations of over R100 000 per year.

The Income Tax Act exempts donations ‘mortis causa’ and ‘any donation in terms of which the donee will not obtain any benefit until the death of the donor’ from donations tax.

A donation mortis causa is a donation made in contemplation of death, i.e. in a will. For a donation ‘mortis causa’ to be valid, it must be executed with the same formalities as required for the execution of a will. Therefore, donations effected in terms of a last will are exempt from donations tax consequences.

Estate Duty Benefits of a Bequest to a Charity

Estate duty is a tax charged on the net value of a deceased person’s estate. Estate duty is levied at a flat rate of 20% on estates with a net value of over R3,5 million. Certain amounts are deductible from the value of an estate for estate duty purposes.

If structured wisely, this can reduce the value of a person’s estate so that less or even no estate duty will be payable on death. Property of the deceased that accrues to certain charities on death may be claimed as a deduction for estate duty purposes. Lets talk if you would like to get your estate planning in order – Marsh Fidelity.

Donating to a Local Charity in your Will – How to Apply this

For this deduction to apply, the property must accrue to a public benefit organization which is exempt from tax in terms of the Income Tax Act or which is exempt under the Taxation Laws Amendment Act.

A Public benefit organization means a company, trust or association, formed or established in South Africa, for the sole purpose of carrying out public benefit activities.

At least 85% of these activities must be carried out for the benefit of people in South Africa and the activities must be carried out for the benefit of the public or be widely accessible to the public.

The Remarkable Jes Foord Foundation.

The Jes Foord Foundation is a local public benefit organization that adds great value to the community. It is a foundation that was the start of a life’s purpose by its founder Jes.

Jes is an incredible human who has had the strength to turn something that would cause many to go into a shell – to instead actively doing something that will continue to uplift all, through this terrible experience she went through.

This is where and how she has become such an inspirational figure in South Africa. Jes turned her trauma into her life’s purpose. Her passion is a driving force for change – she has already achieved so much in the 16 years of service to the foundation.

The growth and reach of The Jes Foord Foundation is pulpable and we really look forward to the difference this charity will continue to make in the years to come. We are grateful to have an opportunity to shine a light on local charities like JFF.

The Foundation coordinates various projects to counsel and care for rape survivors. They do incredible work to address the problem of rape in our society at large. By educating the public, creating awareness in schools and the community they achieve incredible reach. The foundation actively works with the public to change attitudes about rape in South Africa.

Jes’s goal is to one day to not be needed meaning no more acts of rape. As she and her team work towards this goal – they are all, with the communities support making incredibly positive waves in the community.

Considerable Value provided by The Jes Foord Foundation

• The Jes Foord Foundation works within many of the townships surrounding our local Upper Highway community which desperately need education and resources surrounding the topics the Foundation addresses.
• One of the great initiatives started by the foundation is the young men’s mentorship program. JFF vision for this is that, “The objectives of the camp are to use psycho-educational skills to instill healthy, positive leadership qualities that the foundation believes a male, living in South Africa should have.”
• The foundation also provides vital care to victims, one way they do this is through The Handbag Project.
• JFF adds value through education and in turn prevents and reduces rape in our local communities. This reduces the number of children who are given up or abandoned because they cannot be cared for, which ultimately reduces the number of children being placed in local orphanages.

How to Support The Jes Foord Foundation

The Jes Foord Foundation relies solely on individual and corporate donations to keep their counselling, care and education initiatives running. The funding they receive from donations goes directly to creating a brighter future for the communities they work within. You can support them directly here: https://www.jff.org.za/donate/. If you would like to nominate them in your will you can add a special bequest clause, we can assist you with this if you need assistance.

The Hillcrest AIDS Centre Trust.

The Hillcrest AIDS Centre Trust is a non-governmental organization dedicated to saving and transforming the lives of those impacted by the HIV/AIDS epidemic, especially in impoverished communities. They provide HIV healthcare services, as well as prevention, education and economic empowerment programs.

Impact made by HACT

They primarily focus on serving the semi-rural and disadvantaged communities surrounding the valley of 1000 hills just outside the Upper Highway area in KwaZulu-Natal. Their Hillcrest community centre includes a coffee shop (the Ubuntu Ground Café), a craft shop (Woza Moya), a plant nursery (HACT Plant Nursery) and a second-hand book shop.

These initiatives are all aimed at giving back to the community by providing skills training, food security and job opportunities for the workers, while educating the public on HIV/AIDS and assisting and supporting those affecting by the disease. For example, some of staff that are trained and gain experience working in the Ubuntu Grounds Café go on to gain employment at other local hospitality employers such as Mugg & Bean and Lineage Coffee.

Donating to HACT

The Hillcrest Aids Centre Trust relies on donations from the public to keep running their various education, economic empowerment and care initiatives that directly benefit the local communities and society at large. You can support them directly here: https: https://www.hillaids.org.za/support-us/.

Conclusion

Leaving a bequest in your will is one of the easiest and most-effective ways to support the ongoing work of organization’s such as The Jes Foord Foundation and The Hillcrest Aids Centre Trust.

By donating, even a small amount or percentage of your estate in your will to a public benefit organization you make a difference! You also receive tax benefits towards your estate and, more importantly, you will leave a lasting legacy.

Your bequest no matter how big or small will benefit your local community and society at large through the work of these organization’s.

For more information on how to donate to a charity in your will, contact us at [email protected] today or visit our website at https://marshfidelity.co.za to find out more about how we can assist you to leave a lasting legacy.