The changing face of legacy giving: trends and insights

Video transcript

Speakers

• Olivia Marlow – Investment Director, Rathbones
• Lucinda Frostick – Director, Remember A Charity
• Kelly Brooks – High Value Legacy Manager, Cancer Research UK

Transcript

Introduction and welcome

Olivia: Welcome to today's Rathbones Charity Expert Series webinar, where we'll be exploring trends and insights in legacy giving. I'm Olivia Marlow, Investment Director in the specialist charities team at Rathbones.

Rathbones is a leading provider of investment management and related services to charities, trustees, individuals and professional partners. I'm delighted to be joined by Lucinda Frostick, Director at Remember A Charity, and Kelly Brooks, High Value Legacy Manager at Cancer Research UK.

Today we'll explore the evolving landscape of gifts in wills, current and future trends in legacy giving, donor demographics and motivations. Kelly will share insights from Cancer Research UK's highly successful legacy programme, and we'll finish with practical tips for building and strengthening your own programme.

Why legacy giving matters

Lucinda: Remember A Charity has spent more than 25 years working to grow legacy giving across the UK. What began as a small group of fundraising directors has grown into a membership body of around 200 charities working together to inspire supporters to leave gifts in their wills.

Legacies are now the largest single source of voluntary income for an increasing number of charities in the UK, generating approximately £4.1 billion annually. One of the biggest advantages of legacy income is that it is often unrestricted, allowing charities to use funds where they are needed most.

Legacies provide long-term financial resilience and enable charities to invest confidently in future services. They fund around six in ten RNLI lifeboat launches and around one-third of Cancer Research UK's work.

Dispelling common legacy giving myths

Lucinda: There are still several misconceptions about gifts in wills.

One myth is that only wealthy people leave legacies. In reality, around 100 people in the UK write a charity into their will every day.

Another myth is that gifts in wills are only for large charities. In fact, almost 11,000 charities are named in wills annually.

Some fundraisers worry that discussing legacies will discourage lifetime giving. Research consistently shows the opposite. People who choose to leave a legacy are often more likely to support charities during their lifetime as well.

Current trends in the legacy market

Lucinda: Legacy income has grown steadily over recent years. Around one in five charity supporters aged over 40 have already included a charitable gift in their will, while two in five say they would consider doing so.

Tax incentives help support this growth. Charitable gifts left through a will are exempt from inheritance tax, and estates that leave 10% or more to charity can benefit from a reduced inheritance tax rate.

The strongest predictors of legacy giving include a close connection to a cause, volunteering, personal experience with a charity, professional advice, and, in some cases, higher levels of wealth.

Interestingly, Generation X supporters are now slightly more likely than Baby Boomers to have included a charity in their will.

Future opportunities for charities

Lucinda: There is significant potential for future growth across the sector. Legacy income is predicted to reach £10 billion a year by 2050.

No matter the size of your organisation or your cause, there is an opportunity to include legacy fundraising as part of your long-term strategy. The best time to start a legacy fundraising programme may have been 10 years ago, but the next best time is now.

Cancer Research UK's legacy journey

Kelly: Cancer Research UK is the world's largest charitable funder of cancer research. Over the last 50 years, cancer survival rates have doubled, and legacy gifts have played a major role in that progress.

Last year alone, Cancer Research UK received more than £230 million through gifts in wills. These ranged from gifts of a few hundred pounds to multimillion-pound estates and collectively fund around one-third of the charity's work.

Our relationship with legacy giving stretches back more than a century. In 1992 we launched our Free Will Service to encourage supporters to make or update their wills. That initiative now contributes around 10% of our annual legacy income.

The transformative impact of legacy gifts

Kelly: Legacy gifts come in all shapes and sizes. We've received everything from vintage sports cars and fishing rights to artwork and royalty income.

In 2022, we received our largest ever legacy gift: a £44 million estate from a supporter we had never previously engaged with.

Importantly, while many people think about major gifts, residuary gifts account for a particularly significant proportion of our income. Although only around a third of our legacy gifts come from residuary estates, they generate the vast majority of total legacy income.

Building trust through impact

Kelly: People don't leave gifts because of tax incentives alone. They leave gifts because they trust an organisation and believe in the impact it can achieve.

Supporters want confidence that their money will be used effectively. At Cancer Research UK, we continually demonstrate how donations support life-saving research and future breakthroughs.

We bring this to life through examples of research impact, laboratory visits, events and opportunities for supporters to meet the people benefiting from the charity's work.

Supporter stories and lifelong relationships

Kelly: Legacy giving should be viewed as the beginning of a relationship rather than the end.

Supporters such as Sue and Patrick have volunteered, shared their experiences publicly and pledged gifts in their wills because they can see the impact of our work.

Another supporter, Alison, chose Cancer Research UK as the principal beneficiary of her estimated £11 million estate after carefully researching multiple cancer charities. Over the last decade she has become deeply involved with the organisation, mentoring researchers, serving on volunteer boards and making significant lifetime donations.

These examples demonstrate that legacy conversations can deepen engagement and create long-lasting partnerships.

Practical tips for developing a legacy programme

Kelly: The most important starting point is understanding your audience and what motivates them to support your cause.

Internal buy-in is also essential. When colleagues understand why legacy income matters, they become more comfortable discussing it and identifying opportunities to introduce legacy conversations.

Impact should always sit at the centre of your communications. Show supporters exactly how gifts in wills can make a difference and bring future outcomes to life through compelling stories.

Remember that legacy fundraising is a long-term activity. The average gap between writing a final will and death is about seven years, and many people update their wills multiple times during that period.

Overcoming barriers to legacy fundraising

Olivia: Many attendees highlighted a lack of resource as the biggest barrier to legacy fundraising.

Kelly: Legacy giving doesn't always require large budgets or specialist teams. It can be introduced naturally into supporter conversations and communications. Simple actions such as including legacy information on your website, discussing the future impact of gifts and normalising the conversation can make a significant difference.

Lucinda: For smaller charities, size can actually be an advantage. Teams often have closer relationships with supporters and a deeper understanding of their cause.

Having clear information on your website, regularly mentioning gifts in wills and encouraging supporters to learn more can all help build momentum over time.

Questions from attendees

Kelly: Timing and relationships are crucial when discussing legacy intentions. The conversation should never feel forced. Instead, it should arise naturally through deeper engagement with supporters and an understanding of their personal motivations.

Lucinda: It's important to make clear that leaving a gift in a will is welcomed and valued. Many supporters simply don't realise that a charity accepts legacy gifts or understands their importance.

Closing remarks

Olivia: Thank you to Lucinda and Kelly for sharing such valuable insights and practical advice. Thank you also to everyone who attended and contributed questions.

Please complete the feedback form available in the engagement panel and make use of the additional legacy giving resources provided. We hope you'll join us for the next webinar in the Rathbones Charity Expert Series.