Small charity guide to legacy giving

Legacy giving has long been a vital source of income for charities and according to latest figures its importance to charities’ finances is set to grow markedly over the coming years.

 

Researchers Legacy Foresight estimate annual legacy income could reach £4.2bn a year between 2022 and 2026.  This is a 26% increase on the average annual legacy income from the previous five years.

 

Over the next five years Legacy Foresight is also predicting charities will see an average of 134,000 to 137,000 bequests a year.

 

Factors in this growth include an increase in COVID-19-related deaths since 2020. The pandemic has also caused delays in administering estates with backlogs taking time to clear.

 

Another reason has been increasing value of house and share prices. This has boosted the sums of money left for charities, which is usually a percentage of a person’s estate.

 

Small charities need to ensure they are prepared for this increase in legacy donations.

 

Action to take includes ensuring the importance of legacy giving is being promoted.

 

Targeting existing supporters is particularly important, as according to charity sector coalition Remember A Charity, 19% of donors already have written a good cause into their will.

 

 

Importance of legacy giving to small charities

 

Small charity infrastructure body the Foundation for Social Improvement says legacy giving is already “an increasing area of interest for our members”, who are keen to set up legacy fundraising programmes and train staff.

 

A benefit of developing legacy fundraising systems is to secure long-term funding and a sustainable income structure, as charities can benefit from the administering of wills over many years.

 

Small charities can also use promotion of legacies to further strengthen their already strong bond with supporters. This is because many small charities are locally based and embedded in communities.

 

 

 

The best tips for your charity

 

 

Offer free will writing services and advice

 

Will writing can be complex and costly. This is where charities can help by offering free advice to supporters looking to leave a gift. This should clearly explain the types of gifts that can be left, including a percentage of the person’s estate or a set sum of money.

 

Many charities also offer a free will writing service, where the charity meets any legal costs in exchange for the legacy gift. This can be made available to beneficiaries and supporters and help foster a charity’s bond with them further.

 

Among larger charities to do this is the Stroke Association, which has a free will scheme involving a network of local solicitors.

 

 

Enlist legacy champions

 

Small charities can deploy trusted ambassadors and well-known supporters to champion the leaving of legacies in wills.

 

Remember A Charity urges charities to look at making everyone within the organisation a ‘legacy champion’, from supporters and volunteers to the chief executive. This creates a consistent drip feed of messaging around legacy giving to supporters.

 

“With more and more charities moving into the market, fundraisers will need to ensure that legacies are firmly on the radar of their own supporter base and across their communication channels if they are to maximise that growth, said Remember A Charity Director Rob Cope.

“This means continuing to champion the message and conveying just how important that income will be in supporting their mission for generations to come.”