Small charities shouldn’t bother with legacy fundraising - right?

We’ve heard this so often. While we agree legacies are unlikely to be a reliable and consistent form of income for small charities, there are simple steps all charities can take to encourage legacy and in-memory giving to their cause.

First, some definitions:

• In memory giving is where people ask friends and relatives to donate money to a charity in memory of a loved one who has recently died.

• Self-remembrance is where people specify before they die how they would like to be remembered, including through donations to their favourite causes.

• Legacy giving is where people leave money to a charity in their Will, as a result of which their family could get some inheritance tax benefits.

As our analysis of fundraising trends earlier in 2023 reported, all these forms of giving have been growing in recent years.

In memory giving is rose sharply as a result of Covid-19 related deaths. While some slow down might be anticipated during the current cost of living crisis, people are increasingly specifying before they die how they want to be remembered (self-remembrance), including through giving to their favourite causes.

Total UK legacy income has grown from £0.8bn in 1991 to £3.5bn in 2021; an annual real terms growth rate of 2.6%. This rate of growth is accelerating as the baby boomer generation are coming towards the end of their lives, and that trend will continue for many years.

Some very large charities, particularly those concerned with medical or animal causes, derive a large proportion of their annual income from legacies and in-memory giving in relatively predictable amounts. This is usually because they have very large number of supporters.

This is not something most small charities can realistically aspire to, but it is possible for small charities to secure irregular (sometimes substantial) funding through legacies and/or self-remembrance. Some reports suggest the fastest growth in legacy giving is to small charities.

Recognising the limited resources small charities often have for fundraising, we suggest the following simple steps small charities could take to promote gifts or self remembrance wishes in Wills, without much cost at all:

1. Keep mentioning legacy giving as an option in your communications and literature: the biggest reason why people don’t give to charity, and particularly why they don’t leave a legacy to charities, is that no-one asked them. Including a line in all communications, such as newsletters, email footers, leaflets for service users and, of course, fundraising communications, really can help. Even as little as “We are a charity and rely on donations and legacies” can serve as a helpful reminder.

2. Help people understand how to give through their Will: put together a simple information pack or leaflet to explain how to give to your charity in a Will, including making sure they have the correct details for your charity. Remember a Charity have some helpful advice for people who want to donate in their Will.

3. Tell stories in your publications about giving through Wills: if you have people who have left you money or promised to do so, that can be an effective, gentle way to introduce the idea. If you are starting from scratch why not encourage your closest supporters to include your charity in their will and tell their story in your publications. Or you can use examples from other charities (in the right way) to introduce the idea to your supporters.

4. Make sure your staff and volunteers talk about legacy giving: not to pressure people to give through their Will but gently to introduce then idea when making presentation or when people ask about supporting your charity. They need to be confident about this so some training might be needed.

Why not give it a go for your charity? It may take a few years for you to see the fruits of your efforts but there is very little to lose and you could hit the big time!

If you would like to know more about the services we offer or to discuss your fundraising needs further please contact us at julian@almondtreeconsulting.co.uk.