Are You Ready for an Estate Gift at Your Church?

Generosity is a fundamental expression of faith, shaping not only how we live but also how we plan for the future. For many believers, their church home is a cornerstone of their life—a place of spiritual growth, community, and vital outreach. As stewards of your congregation's future, church leadership must recognize a profound truth: many dedicated members feel a deep, spiritual call to extend their support beyond their lifetime through estate gifts.

Estate gifts, often the largest and most transformative contributions a church will ever receive, represent a member’s ultimate act of faith and generosity. However, receiving and managing these contributions responsibly requires more than simple gratitude; it demands organizational readiness. A lack of clear policy, proper legal structure, and communication protocols can turn a generous blessing into a complex challenge and an internal conflict that can disrupt the church family.

The financial data underscores the importance of this readiness. According to Giving USA's most recent statistics, $592.5 billion was donated to U.S. nonprofits in 2024. Of that staggering total, $392.45 billion came from living individuals, but a significant $45.84 billion was given away by estates—the final gifts from individuals at the end of life. Moreover, organizations such as The Barnabas Foundation report that estate gifts to churches have increased substantially over the last decade. In the last decade more than $8 million dollars have been given to Christian Reformed congregations, with more individuals intentionally including their church in their estate plans year over year.

The impact of an estate gift on a church can be significant. If handled properly, a legacy gift can be a major blessing to the church, the community, and the world. Used improperly, it can cause severe challenges and may even lead future members to remove the church from their planned giving.

Consider two contrasting scenarios:

1. The Unplanned Gift (Challenge): One church received nearly $300,000 from a lifelong member's estate. Because little was known about the gift or how the member intended for it to be used, the lack of policy led to an immediate battle among members over the funds. This internal conflict overshadowed the donor's generous spirit and caused division.

2. The Planned Gift (Blessing): Another church, which had proactively developed and communicated a clear estate gift policy, received a $700,000 gift. The leadership followed their established policy, developed and communicated a plan for its use, and utilized the funds for crucial church updates, special community support, and extra gifts to their missionaries. This gift became a powerful, unifying blessing.

Planning and understanding how to accept and allocate the gift is the key difference between an estate gift being a blessing or a curse.

Many church leaders assume, "That will never happen to us," or "We don't have anyone wealthy enough to give a gift like that." However, the experience of organizations like the CRCNA (Christian Reformed Church in North America), which has been involved in planned giving for over 50 years, tells a different story. Most estate gifts are unknown until they happen. People tend to keep their estate plans confidential unless the church actively promotes legacy giving, encourages sharing of intentions, or provides a clear understanding of how the gift will be used.

What the CRCNA observes is that more and more Christian Reformed churches are receiving estate gifts, but are not ready or prepared to receive such a significant amount of money. Their handling of these gifts will profoundly impact future giving, including weekly generosity, as it demonstrates their stewardship capabilities.

With all this in mind, the advancement team of CRCNA, working within the planned giving space, has finalized the Church Estate Gift Policy Template.

This template is designed to provide churches with a structured starting point. It will help your leadership team ask the right questions and establish a clear, Christ-centered framework. It covers the core areas necessary for readiness, including:

• Governance and Oversight: Establishing who within the church (e.g., a specific committee or board) is responsible for receiving and reviewing bequests.

• Gift Acceptance Guidelines: Defining what types of assets the church can and cannot accept (e.g., real estate, complex securities).

• Designated vs. Undesignated Funds: A clear framework for honoring donor designations while ensuring undesignated gifts are used for the most pressing needs or endowment growth.

• Communication Protocol: Guidance on how to acknowledge, thank, and communicate with the donor’s family with grace and sensitivity.

By adopting and customizing this policy, you can ensure that your leadership and your congregation understand precisely how an estate gift will be received, managed, and used to advance the church's mission, thereby honoring the donor's wishes and maximizing the blessing for all.

Here’s how to access and utilize this powerful resource:

1. The Church Estate Gift Policy Template is available at the bottom of this article. 

2. Have a conversation: We strongly encourage your church board or governing body to schedule a time to review the template and customize it to your own official church policy. Having this policy in place is the definitive step toward ensuring that every legacy gift received is a lasting blessing, not a burden.

3. Review your plan with a planned giving partner like The Barnabas Foundation, Christian Stewardship Services, or other legal services for further guidance.

4. Share your policy with the church members so they are aware of how you will use their legacy gift.