Large charity guide to legacy giving

Legacy giving is now one of the most vital aspects of charities’ fundraising activities. In some cases, encouraging supporters to leave a gift in their will can transform charity’s finances.

 

But this requires long-term investment, to promote legacy giving and offer help to supporters, from writing wills to accessing expert legal advice.

 

This is where larger charities have an advantage over their smaller counterparts in the voluntary sector, as they have greater financial clout to hire expert legacy staff and forge partnerships with lawyers.

 

Large charities also have the benefit of being able to be more patient to focus on the long-term gain of legacy giving rather than be reliant on immediate income.

 

Here we look at how large charities can increase their income from legacy donations. We also look at how in the case of the British Heart Foundation (BHF) such a focus has brought record income from legacies and transformed its fortunes post-COVID-19 pandemic.

 

 

Importance of legacy giving to large charities

 

There is increasing evidence that legacy giving is a major growth area of income generation for charities.

 

For example, In the 12 months to March 2022 legacy income grew by 15%, according to consultancy Legacy Foresight.

 

For the first three months of 2022 the number of bequests increased by almost a fifth compared with the previous quarter, the consultancy adds.

 

In addition, legacy income received by more than 82 large charities, which make up half the legacy market, totalled £1.69bn over the year ending June 2022.

 

 

British Heart Foundation’s record legacy donations

 

As the BHF discovered in 2022, the rewards from investing in legacy giving can be immense.

 

Its annual report show that legacy donations reached record levels thanks to its work encouraging gifts in wills. This legacy boost played a major part in its post-COVID-19 recovery, following months of lockdowns, the closure of charity shops and postponement of in-person fundraising events.

 

Between 2021 and 2022 its total income increased 148% from £57.2m to £142.1m, the accounts show.

 

Over the same period its legacy income increased by a third to reach £102.6m, a record for the charity.

 

A clearing of pandemic impacted probate cases as well as rising property prices are factors in the increase. Another is the charity’s investment in legacy services that have led to successful link ups with lawyers.  

“As always, we’ve had excellent collaboration from executors who have worked with us to maximise the gifts from generous supporters,” states the report.

“To receive any legacy is truly humbling and a testament to a supporter’s generosity," it adds.

 

 

Tips for large charities

 

 

Target coastal towns

 

Large national charities can benefit from a UK-wide network of charity workers, which is vital for targeting areas of the country where people are most likely to leave a gift in their will.

 

According to Smee And Ford’s Legacy Trends Report 2022 residents of seaside coastal towns and cities are the most likely to consider charities when making a will.

 

The areas with the highest concentration of charitable wills include Brighton, Portsmouth, and Bournemouth on the South coast, as well as Exeter near to the Devon coast.

 

Meanwhile, Sunderland, Telford, Halifax, Southall, and Llandrindod in Wales have the UK’s lowest concentration of charitable estates.

 

While nationally 13% of probated estates include a charity gift, this proportion rises to around one in five in some seaside towns.

 

Consortium Remember A Charity urges charities to deploy trusted ambassadors to improve promotion of legacy giving. Smee and Ford’s research indicates these charity workers should target seaside towns in a bid to encourage more people to leave a gift in a will to a good cause.

 

 

Target millennials and generation X

 

Another advantage large charities have over smaller voluntary sector organisations is they have the budget to better target specific groups nationwide. This is particularly the case with legacy promotion, with latest evidence suggesting that millennials and generation X are worth focusing on.

 

Survey by creative agency WPNC has found that nearly half of 26- to 55-year-olds have considered donating to a charity in their will.

 

WPNC suggests these age groups offer considerable potential for large charities to increase income as many of them are yet to write a will. Just 30% of generation X have made a will and the proportion dips to 13% among millennials.

 

“There has been a sharp rise in awareness among younger audiences about planning for the future and will-writing in particular,” said WPNC legacy and international marketing director Gail Cookson.

 

“We see this as a major opportunity for charities to showcase their cause and build
relationships with Millennials and Gen X.

 

“Not only is this likely to increase the chance of a legacy donation, it could also boost donor value across their lifetime.”