Tough times

Times are tough for many at the moment. At time of writing, food inflation stands at almost 15%, the Bank of England has increased interest rates to a 15 year high, and we’re still reeling from last year’s energy price rises. Understandably, people have far less disposable income and have had to tighten their purse strings.

It’s not an easy environment to ask people for money. Charities are having to make cutbacks, leaders are scrutinising fundraising budgets with a fine toothcomb, and some are asking whether now is really a good time to be investing in legacies.

At the same time, there has never been so much awareness and understanding of how crucial legacies can be as part of the fundraising mix - building sustainable, sizable, and largely unrestricted income that can enable the sector to weather the storm. But there is still a job to do in ensuring charity leaders continue to invest in their legacy teams and budgets to make sure this vital income stream can be relied upon for the years ahead.

After all, forecasting by legacy analysts at Legacy Foresight indicates that legacies – which brought in almost £4 billion last year - will likely continue to bring in a similar amount over the next few years, proving their resilience against economic challenges. And, by 2050, annual legacy income is predicted to reach £10 billion annually through donations from charitable and community-minded baby boomers filtering through (1).

Whilst boomers offer huge potential for the legacy market over the next 30 years or so, this also means we have a limited time frame to maximise legacy potential within that window. It’s those that continue to champion the legacy message – and ensure supporters know how vital those gifts are – who are most likely to benefit from this surge.

The value of legacies for supporters and charities alike

Pledging a legacy gift means supporting the charity in the future - enabling supporters to make a difference without having to find the funds right now. This can be a helpful incentive for those who really want to make an impact with their giving, especially when few people are feeling particularly cash-rich. So too can such generous inheritance tax benefits, with those who choose to leave a gift of 10% or more of their estate benefiting from a reduced IHT rate at 36%, rather than 40%.

When we think about that boomer audience it’s important to explore what they want from their giving, and what messages are most likely to resonate with them. Research tells us they tend to be healthier and wealthier than former generations. They are well educated and want to make informed decisions - and look to find information from charity websites and be able to trust them.

With more solicitors and Will-writers consistently referencing the charitable option too, 1 in 4 professionally-written Wills now include a charitable gift. And, while one in five charity supporters over 40 say they’ve left a gift in their Will, twice as many say they’d be happy to do so - showing huge potential for further growth.

Top tips for making the case for legacies today
• Manage expectations –help staff and senior leaders alike to understand the short-term investment needed to bring in long-term income and stability; and that it won’t happen overnight.
• Show what legacies already mean to the organisation and what could happen if that income was magnified.
• Highlight the risk of not investing – what could happen in the face of a major incident should donor attrition spike, or if usual fundraising were not possible?
• Empower supporters – for many people, legacy giving may be their only opportunity to make a sizeable donation without immediate financial outlay.
• Build a network of legacy allies and celebrate legacy successes – equip colleagues and trustees to be legacy champions and share the good news when legacies come in.
• Highlight too the small window of opportunity linked to the huge opportunity presented by the Baby Boomer generation.
• Recognise strength in collaboration – joining in with Remember A Charity Week presents a chance to amplify your voice.

How Remember A Charity Week can help

At Remember A Charity, we work year-round to raise awareness among the public of the impact a gift in their Will can have. This includes our annual Remember A Charity Week, a high-profile campaign that sparks conversations, inspiring more people to do something remarkable.

This year, Remember A Charity Week is 11-17 September, and the theme is ‘Be remembered for’ - celebrating late loved ones’ special stories, treasured moments, and quirky past-times. It’s a message of love and humour, and acts as a springboard for people to consider how they’d like to be remembered.

The Week provides an opportunity for charities to engage with the public and shine a light on the importance of legacies. To help, we’ve created a suite of customisable digital marketing assets for our members, including social posts, banner ads and bookmarks. There are also resources available for organisations to use internally.

To join us this Remember A Charity Week visit www.rememberacharity.org.uk.

(1) Legacy Foresight, 2022

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