Charities Push Back as Banks Delay Bequests From Deceased Donors

Nonprofit organizations are increasingly frustrated with financial institutions that are holding up bequests left by deceased donors, according to Business News. Charities say banks and investment firms are requiring personal information from their employees before releasing funds designated for the organizations — a practice nonprofits argue creates unnecessary delays and burdens.

The friction is emerging at a critical intersection of estate administration and institutional compliance. Financial firms have tightened verification procedures in recent years, citing regulatory requirements and fraud prevention. However, charity advocates contend that these procedures were not designed with nonprofit beneficiaries in mind and are being applied in ways that obstruct legitimate inheritances.

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For many smaller nonprofits, the delays can have meaningful operational consequences. Organizations that rely on planned giving — bequests written into wills or designated through retirement accounts and investment portfolios — often count those funds as significant revenue, and stalled transfers can disrupt budgets and programming.

The standoff highlights a broader tension between financial sector compliance culture and the administrative capacity of the nonprofit world. Charities generally lack the legal resources that corporate beneficiaries might deploy to push back against institutional gatekeeping, leaving them more vulnerable to prolonged delays.

Advocacy groups representing nonprofits are calling on financial firms to revisit their internal policies and develop clearer, more equitable processes for releasing inherited assets to charitable organizations. Continue reading at Business News.