I recently spoke to an estate lawyer who told me she would never recommend certain charities to clients. Why?  Because of the way these charities treated estate trustees. Some charities are unduly litigious, grind on fees, and are obstreperous about releases. It’s not the first time I’ve heard this comment from estate professionals – and some traumatized lay executors and family members.

Sympathy for Charities

It’s hard to evaluate the validity of these accusations. I have worked at four major charities over the last 34 years. I sympathize with charities and their challenges with estate administration. There are administrative delays, clueless executors, double-dipping lawyers, legal challenges, family dysfunction, and in a few cases, outright fraud.

Many major charities employ experienced estate administrators. They all know each other. When named in the same will, they coordinate on administration and legal matters – partly to reduce costs and partly to provide a united front. They try to be responsible and uphold the testator’s charitable intent. This should be applauded.

Second-Class Beneficiaries

Yet charities are often considered to be second-class estate beneficiaries. That is, not family.  The implicit assumption is these interlopers should be grateful for what they receive and not cause trouble. I’ve heard this view repeatedly over the years and actively repudiate it. Individuals have testamentary freedom, which exist in most provinces, and can decide the beneficiaries of their estate. Charities are not only legitimate beneficiaries, but essential to society.  They are not second class beneficiaries, and they have a clear obligation to defend the intentions of donors and their charitable property.

Difficult Charities

I know a few charities that have a reputation for being “difficult” in estate matters. The translation of “difficult” is a charity that asks for clear estate accounts and fee justifications. That’s just being professional.

Nonetheless, some charities get reputations.  They use litigation lawyers extensively for routine estate matters and are institutionally hostile to executor fees. One major charity is “toxic and greedy”. Another big one serves as executor for their donors to reduce costs, blithely ignoring the conflict of interest.

So-called “difficult” charities conduct business in a way that erodes trust, or at least that is the perception among estate professionals. Charities, however, have a duty to be good fiduciaries and protect charitable property received via estate donations. Done right, the fiduciary obligation outweighs the potential reputational risk.

A version of this blog was originally published on October 20, 2022 in All About Estates and has been updated to include helpful feedback from charities.