are charitable bequests received from a charity taxable?

Answer 1

no

Answer 2

Appears that "girlwhoknowsitstrue" misunderstood the question, and that "Judy" hasn't envisioned the situation. This question doesn't deal with a "bequest" from an estate. Charities make bequests of funds collected for their charitable purposes all the time, by providing meals, supplies, services, etc. to people meeting the definition of their cause. A recipient of a charitable bequest has received a gift from the charity, and the value of that gift is not taxable to the recipient.

Answer 3

Maybe - depends on whether the bequest was set up properly and conforms with IRS regulations

Bequest Language

A charitable bequest must conform to IRS rules to qualify for an estate tax charitable deduction. The IRS rules are listed in both the Internal Revenue Code and an accompanying regulation. Under IRC §2055(a), "The value of the taxable estate shall be determined by deducting from the value of the gross estate the amount of all bequests, legacies, devises and transfers (to qualified charitable organizations)." Further, the regulation provides that "the value of property included in the decedent's gross estate and transferred by the decedent during his lifetime or by will (...to a qualified charitable organization)."

Some charitable bequest language may fail to comply with IRS rules, thereby jeopardizing the estate tax charitable deduction for the charitable transfer. The following are examples of such language:

1. Unascertainable Amount of Charitable Bequest

By failing to specify an amount to be bequeathed to a charitable organization, the charitable transfer is actually accomplished by a third party (e.g. the executor), rather than the decedent as required under IRS rules.

2. Unascertainable Charitable Beneficiary

Suppose a bequest includes this language, "To Mary, to be distributed to whatever charity she deems worthy." Recalling IRS rules, one would assume such a charitable transfer would fail to qualify for an estate tax charitable deduction because a third party (Mary), rather than the decedent would make the charitable transfer. However, such bequests do qualify for an estate tax deduction provided that (as defined under local law):

The third party is holding the property as a trustee; and

The third party has an obligation to transfer the property to charitable organizations eligible for the IRC §2055 deduction [Rev. Rul. 69-285, 1969-1 C.B. 222].

3. Conditional Bequests

Bequest language is conditional or contingent if the charitable transfer relies upon the nonoccurence or occurrence of some event. The insertion of a conditional or contingent bequest will not jeopardize an estate's charitable deduction as long as the possibility that the charity will not receive the charitable bequest is "so remote as to be negligible when it is determined on the decedent's date of death" [Reg. §20.2055-2(b)(1)].

Answer 4

A charitable bequest received FROM a charity? That sounds pretty unusual.

Answer 5

they are not usually referred to in quite that manner. I think what you are asking is if a charity helps someone financially if that is taxable to the receiver? No it isn't, its a gift.....this could get sticky though. In your case, I think you are safe.

Answer 6

No, they're gifts.