The level of income from legacy giving is increasing year-on-year. But how can smaller
charities get a piece of the pie?
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We all want to be remembered when we die, and one increasing way people are aiming to do that is through leaving a gift to a charity in their will.

According to research, around 40% of all UK deaths result in a will at probate, and 16% of those wills are now charitable, up from 13% in the late 1990s. On average, there are 3.3 charitable gifts per will and 38% of charitable wills contain just one bequest; 28% include four or more.

Legacy Foresight’s latest Legacy Market Briefing found that UK legacy income will total £19 billion over the next five years, climbing to £23 billion in the five years after that, suggesting that by 2030, UK charities will receive £5 billion per year in legacy income from around 146,000 charitable bequests.

Traditionally, most legacy incomes usually go to the largest, most wellknown charities. The National Trust, Cancer Research and the RNLI often top the list, with the RSPCA, Macmillan Cancer Support and PDSA following closely behind.

However, this may be changing. Legacy Foresight has found that medium (£1m-£10m) charities have reported an incredible five-year growth rate of 6.3%, suggesting that there may be a slice of the pie left for some of the smaller charities.

Changing things up

So how can smaller and medium-sized charities encourage more legacy income?

Currently, the type of charity has a lot to do with it. Legacy Foresight’s research found that the fastest growing subsectors over the last 10 years have been air ambulances at 14% and wildlife trusts (13%), followed by arts and education charities, NHS hospitals, and mental health charities, all ranging between 7% and 8% per year.

Rob Cope, director of Remember a Charity, which works to encourage more people to leave a gift in their wills, explains that the market has broadened, with over 10,000 charities benefiting from bequests a year; a number that is only increasing.

“Health tends to be more front of mind at the end of our lifetime and charities in this space have done particularly well,” he notes. “And let’s not forget we’re a nation of animal lovers too.”

The British Heart Foundation has found just this and been able to significantly benefit from the public’s generosity. It receives roughly 50% (nearly £80 million) of its annual income from legacy donations, some of its techniques are perhaps things smaller charities can learn from.

As we know, the causes the public put their heart, and money, towards can change quickly. In the wake of Covid-19 it’s logical that health and NHS charities are more popular, and even environmental charities can expect to see a boost as climate change stories hit the news.

“The arts and environmental organisations are among many causes that are gaining market share,” Cope adds But that doesn’t rule other charities out. As legacy income has increased, it makes sense that people, and charities, are more willing to talk about it.

“Generally, charities are becoming much more open about their legacy fundraising – they a ren’t afraid of being creative, emotive, and humorous even,” says Cope.

“They’re talking about it more with supporters, so public awareness is growing and, of course, digital solutions are making it easier to write a will. As a result, many of the barriers are gradually being knocked down, more charities are being named in wills, more causes are benefiting and that’s fantastic.”

Keep on communicating

Cope notes that another change is how charities communicate. “Traditionally legacies were promoted through TV or [direct mail] campaigns, but online and digital works really well in this space and that’s helping to level the playing field for smaller charities, which is so important.”

As more digital-centric generations grow older and we spend more of our lives online,
changing the way charities communicate about legacy income could be one of the biggest drivers in donations.

“We’re drawing closer to the largest transfer of intergenerational wealth with the baby boomer generation and expecting even more growth in legacy income,” explains Cope.

“But it’s important to recognise that it’s also an increasingly busy market. Charities will need to continue to invest and champion the legacy message or run the risk of losing out to others who do.”

Meenaxi Patel, head of legacy management at the British Heart Foundation explains that communication is a significant part of their strategy. “As well as promotion of legacy giving across our digital and social channels, the BHF have partnered with willwriting specialist Farewell and the National Free Wills Network to offer our supporters the opportunity to write or update their will for free, either online, on the telephone or in person with a local solicitor,” she says.

“Those who use the scheme are under no obligation to leave a gift in their will to the BHF,” she adds. Partnerships like this help to spread the message about legacy giving, and although perhaps not something smaller charities can undertake, they can use their own advantages.

Smaller charities can have an advantage over larger charities in that they have a much smaller group of supporter relationships to manage, and therefore are more likely to have personal relationships with key donors, volunteers, and influencers.

They can use existing communication channels and incorporate legacy messages into these.

Looking forward

So what about younger generations? Are they likely to give as much as previous generations did?

Cope says that consumer polling suggests they are more likely to leave a gift “but this can be a bit of a red herring,” he adds. “The reality is that most haven’t done it yet and many will change their minds and wills over the years.

“The good news is that they are certainly very positive about legacies. The challenge is to keep championing the legacy messaging throughout their lifetime.”

In a small charity, it may be that currently, legacy giving is an afterthought, but to be successful in it, it needs to take a bit more focus, and time.

Remember a Charity says charities who have successfully developed legacy fundraising keep an eye on the long-term whilst balancing this against current and short-term needs.

It may not be easy, but the payoff could be significant. It’s obvious that legacy donations are a key source of income for many charities, with that number growing year-by-year. Cope agrees, calling the donations ‘transformational’.

“Most gifts are unrestricted and that’s critical – enabling charities to use the money where its needed most. As we saw during the pandemic, this income can be what brings charities back from the brink.”

“The more we talk about it and normalise the concept – particularly with the predicted surge of donations from baby boomers, the more charities will be able to benefit for generations to come,” Cope concludes.

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