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Bequest Intention Increase

  • 1.  Bequest Intention Increase

    Posted 09-13-2021 02:04 PM

    Hi all,


    A donor has notified us that they have increased their bequest intention in their estate plans from 15% (originally booked with an estimated value of $200,000) to 30% (new provided estimated value of $930,000 as the total amount for the 30%).


    Since there has been an increase in the percentage, I am aware that we can book a new bequest intention, but the question becomes at what value. It is my understanding that we can only book the value of the new 15% increase, which I understand as 50% of the estimated $930,000 ($465,000), since the original 15% was counted in a previous campaign. That the remaining $265,000 ($930,000 - $200,000 booked - $465,000 to be booked) cannot be counted since it would be considered an increase in the original 15% value already booked. Am I correct in my understanding? Also, can anyone provide where this is stated in the CASE Management and Reporting Standards book or documented elsewhere?


    I was also given a specific hypothetical example to find out an answer, but I believe follows the same rules above.  A donor has a previously booked bequest intention of 100% of their estate valued at $1,000,000, but recently sells their company for $50,000,000 increasing their overall estate value to $51,000,000, would we still not be allowed to adjust the value of the bequest intention? Even with that large of an increase to the estate?


    Any information would be gratefully appreciated.



    Marc Robb

    Marc Robb
    Director of Advancement Services & Donor Relations
    Rowan University

  • 2.  RE: Bequest Intention Increase

    Posted 09-13-2021 03:34 PM
    The underlying premise behind the CASE Standards is to count  gifts - at their current value -  when given.  Increases due to market values are not "new" gifts.  Similarly, you do not reduce a gift or bequest when the value DECREASES.  A gift is a gift at the time it is given.

    As for the NEW 15% added to your bequest expectancy, you should count your portion based on the market value when the change was made.  The original 15% is unchanged.

    Do note that when a bequest is REALIZED during the same campaign period in which the bequest was made, you can count the difference.  Similarly, if the bequest comes in for LESS, you must reduce the bequest and count what came in.


    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard