The “best” way depends on your goals, the type of assets you have, and whether you want to maximize tax benefits for your heirs while also supporting the nonprofit. Here are the main options people usually consider:

1. Name the Charity as a Beneficiary

• Retirement Accounts (IRA, 401k, 403b): These are often the most tax-efficient assets to leave to charity, since nonprofits don’t pay income tax but your heirs would.
• Life Insurance Policies: You can name the nonprofit as a full or partial beneficiary.
• Bank or Investment Accounts (POD/TOD designations): Add the nonprofit as a payable-on-death (POD) or transfer-on-death (TOD) beneficiary.

Easy to set up, doesn’t require rewriting your will, and avoids probate.

2. Include a Bequest in Your Will or Trust

• Specific Bequest: Leave a set dollar amount.
• Percentage Bequest: Leave a percentage of your estate (helps account for changes in your estate value).
• Residuary Bequest: Leave what’s left after other gifts and expenses are settled.

 Flexible, but may go through probate.

3. Charitable Trusts (for larger estates)

• Charitable Remainder Trust (CRT): Provides income to you or loved ones for life, with the remainder going to the charity.
• Charitable Lead Trust (CLT): Pays the charity for a set time, then passes remaining assets to heirs—often with tax advantages.

 Useful if you want to balance supporting family and charity, while reducing estate or gift taxes.

4. Donor-Advised Fund (DAF)

• You can create a DAF during your lifetime, donate into it (with tax benefits), and name your heirs or the nonprofit to receive the remainder when you pass.

Tips:

• Be clear in naming the charity (legal name, address, tax ID).
• If you want to restrict how the gift is used (e.g., food pantry only), put that in writing with the nonprofit ahead of time.
• Talk with both your estate planning attorney and possibly the nonprofit’s development office to align your wishes.
• If you have heirs, retirement accounts usually go to charities and non-retirement assets to people (to minimize taxes).