When donors think about leaving a gift in their Will, one of the choices they face is whether to designate it for a specific purpose or leave it undesignated for general use.

What donors want and what charities need don’t always line up perfectly. Donors often prefer something specific because it helps them picture the impact of their gift. Charities, meanwhile, tend to prefer undesignated funds because they need flexibility to respond to future needs and challenges. The reality is that both perspectives are valid, and the best legacy conversations find a thoughtful balance between them.

Why designated gifts feel so compelling

From a donor’s point of view, designated gifts can be deeply motivating. Naming a specific program or area of work helps donors imagine the difference their gift will make. It creates a tangible story: this gift will provide clean drinking water to a specific community, support family accommodations during long hospital stays, or provide scholarships and tutoring for post-secondary students.

For some donors, this clarity brings comfort. It reassures them that their values will be reflected in how the gift is used, even years into the future. In legacy giving conversations, that emotional connection can be powerful and often encourages follow-through.

Designated gifts can also strengthen relationships. They open the door to meaningful discussions about what matters most to a donor and how a charity delivers impact today.

The challenge with looking too far into the future

The difficulty with designated gifts is not intent, it’s time.

A gift in a Will is often realized many years later, sometimes decades down the road. In that time, organizations evolve. Programs change. Community needs shift. What feels like a perfect fit today may no longer exist in the same form when the gift is eventually received.

This can put charities in a difficult position. A narrowly restricted gift may require legal steps to redirect. Funds may sit unused because the original purpose is no longer viable. In some cases, a charity may not even be able to accept the gift as written.

None of this reflects a failure of planning. It reflects the simple reality that no organization can fully predict tomorrow’s problems or challenges.

The quiet power of undesignated gifts

Undesignated gifts give charities flexibility to respond to real needs at the time a gift is received. They allow leadership teams to direct resources where they will have the greatest impact, based on existing circumstances, not assumptions made years earlier.

Leaving a gift undesignated is often where a familiar donor concern comes up—worry about their gift going toward “overhead,” “salaries,” or “general expenses.” That instinct is understandable. Donors want their gift to do something tangible, and designating it can feel like the best way to ensure that, but a charity can’t deliver impact without paying its staff or covering its operating costs. Without support for these items, it won’t be around to do the work a donor deeply cares about.

Gifting a car can provide a useful analogy. Imagine a donor wants the organization in the future to have the “best, fastest” car possible, and they’re excited to fund the engine because it feels like the most important part. They leave a designated gift in their Will, with instructions that it can only be used for the engine. If, after the donor passes away, the organization can’t afford to build the rest of the car, they’re in trouble. Even the best engine in the world is useless without the basics that make a car operational. In fact, if the organization doesn’t have the funds to build the rest of the car, they may have to turn down the gift of the engine. Or, they accept it, and end up with a premium engine sitting in a frame, stuck in the driveway.

Let’s take it one step further. What if, by the time the donor passes away, the “best, fastest” cars are electric and hardly anyone is building new cars with the kind of engine the donor had in mind? Because the gift is so specific, the organization has no practical way to use it and may have to say no. The organization might still be trying to build the fastest car possible, but this particular gift can’t help because it’s locked into yesterday’s technology.

Help donors see flexibility as impact

The challenge for fundraisers isn’t choosing between designated and undesignated gifts. It’s helping donors understand the trade-offs.

Undesignated doesn’t mean directionless. It means trusting the organization to apply resources where they’re needed most. It means recognizing that the people closest to the work in the future are best positioned to decide how funds can do the most good.

At the same time, donors often want something to hold onto — a sense of purpose or alignment. Many charities address this by encouraging broader designations or by including language that allows flexibility if a specific program no longer exists.

The conversation shifts from “exact instructions” to shared values.

A balancing act, not a binary choice

Designated and undesignated gifts both have an important role to play in legacy giving. The goal isn’t to discourage donors from expressing preferences, but to ensure that generosity can actually be used in meaningful ways when the time comes.

Legacy gifts are acts of trust. When donors understand how their gifts will support not just programs, but the organization itself, they’re better positioned to leave gifts that endure, and charities are better equipped to honour them.

Daniel Goldgut is the co-founder of Epilogue, an innovative online platform revolutionizing estate planning in Canada. With a background in law and years of experience in private practice, Daniel transitioned from a legal career to entrepreneurship, driven by a passion for making Wills and estate planning more accessible and affordable for everyone. He collaborates closely with charities to enhance their legacy giving programs, helping organizations grow their impact. daniel@epiloguewills.com