A simple guide to legacy giving

Raising awareness of legacy giving through communication

The charity sector can ensure that people embrace legacy giving through communication. Each charity, for example, could include gift sections on their website. They could provide additional information about legacy giving in newsletters, emails, social media, or any other platform they use to communicate with potential donors.

Charities can also communicate the importance and the value of legacy giving through meetings with supporters. They can have one-on-one meetings, explaining the long-term benefits of legacy giving. Charities can also organise virtual or in-person conferences on legacy giving, again demonstrating the value to a wider pool of potential donors.

Charities can also highlight certain benefits to donors that go beyond simply supporting a good cause. Legacy giving offers significant tax benefits, for example. The charitable donation does not count toward the taxable value of an individual’s estate. The donor can therefore cut the inheritance tax rate of the rest of their estate by leaving a percentage of their estate to charity.

Another perk of legacy giving that charities can accentuate is recognition. Charities can offer individuals symbolic gestures to recognise their donations. Consider plaques or inscriptions in relevant places, highlighting the generosity of the donor. Perhaps charities can offer a simple dedication or public thanks. Small acts will increase the appeal of legacy giving.

Using digital services to attract legacy giving donors

Charities can also highlight the ease of legacy giving through digital means. As mentioned earlier, nearly 60% of adults do not have wills. A number of digital will-writing services are currently available. Many of these digital will-writing tools are simple to use, with some claiming that they can create a digital will in fifteen minutes. Charities can bring digital wills to the attention of current supporters, some of whom may be willing to leave a legacy gift.

An example of the use of digital wills was a test campaign that Dignity in Dying released on Facebook, which offered followers a free digital will service through Farewill. The charity spent £5000 and generated legacy pledges worth an astonishing £220000. The move is perhaps the clearest demonstration of the revenue potentials of legacy giving.

The legacy giving market can offer arguably the best return of any fundraising channel, though it is often overlooked due to present bias. By focussing on legacy giving, charities can prioritise higher long-term gains by redirecting revenue from short-term gains, which may prove beneficial in the long run.