Ten ways to grow the legacy market and your income

Rob CopeDirector, Remember A Charity

• Legacies account for 13% of all voluntary income and 5% of all income received by charities

• In 2011, the legacy ‘market’ was worth £1.85bn…

• That represents just 3% of all the money left in estates

• In all, just 7% of people die with a gift to charity in their will…

• Compared to the 74% of British adults who support charities while they are alive

Legacy Foresight, Inland Revenue, NCVO

The legacy market at a glance

The legacy market has flat-lined since 2008UK legacy market 1988 – 2011, £bn

Legacy Foresight, CaritasData, NCVO, Smee & Ford

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

0.0

0.4

0.8

1.2

1.6

2.0

Expansion

Recession

Recession

Despite falling deaths, bequests keep risingTotal number of charitable bequests 1988 – 2011,000s

Legacy Foresight, CaritasData, NCVO, Smee & Ford

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

50

60

70

80

90

100

110

120

55% cash gifts

52% cash gifts

Legacy Foresight analysis of Caritas data

Legacy income growth by size of charity, 2007/8 - 2010/11, % pa

‘XL’ charities hit hard in recession aftermath

Small Medium Large Extra large-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

1.0

2.8

2.2

-1.4

Health; 42

Animal; 14Conservation; 8

Disability; 8

Development; 6

Children; 4

Other ; 18

Legacy Monitor 2012

Legacy market shares, %, general charities, 2011

The legacy market by sector

Nimble, contemporary causes gain groundWinners and losers by cause area

Legacy Foresight analysis of Caritas data 2012

Disability Children Conservation Hospices

Advancementof religion

Animalwelfare Health Arts/culture

Domesticpoverty relief

Olderpeople

Armed services Education

    Overseas development

Wildlifetrusts

Slow growth Fast growth

Longer term, rising deaths will fuel growthProjected UK deaths, 2000 – 2030, 000s

OPCS, Government Actuary’s Department

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

500

520

540

560

580

600

620

640

615,000 deaths

7,500 additional charitable Wills

Family First

Lack of Salience

Not the social norm

Legacy has to be large

No flexibility with legacies

Legacies are not something that regular, everyday people doThere is a (media-driven) perception that legacy givers are:

Wealthy eccentrics; famous celebrities People who have a grudge against their kids

Rarely discussed; rarely thought about…“It just hasn’t occurred to me…..I’ve never really thought about it”

Legacies are just not on the radar !

Strong perception that ‘a legacy’ has to be a large amount“You only hear about big legacies, don’t you…..not small ones”

…because legacy giving linked with celebrities, wealthy eccentrics

Didn’t know that can leave fixed amount or %Didn’t know that can change a legacy amount

…… uncertainty about future circumstances is a major barrier for some

“For me ….and I would expect lots of people…. it’s family first, charities second”

Repaying a debt

Personal relationship

Knowing someone

Helping an organisation you have a long term affinity with

Knowing that another family member has left a legacy

‘Repaying’ a charity for helping someone you care forTHE primary motivator for many legacy givers

Major motivations for giving a legacy…

Heartfelt gratitude

Inner satisfaction

Family values

Deep sense of self worth“It’s a pride within yourself…it makes you proud of the way you’re living your life”

Passing on the ‘family culture’“It’s continuing the family ethics…I feel I’ve been brought up right, and I want to pass that on to my kids”

‘Repaying’ the debt“I have put Macmillan in my will...I just had to for what they did for my friend…they were so wonderful”

The marketing / communications materials need to tap into these emotions

Legacy giving = powerful emotions……

Top 10 tips for growing your legacy income

1.Set out your vision of where you wantto be and why

2. Connect with your cause with passion, inspiration and emotion – collect, inspire,

tell stories

3. Define the impact your donors make that inspires and satisfies

4. Focus on conversations – directly or indirectly, not pledges

5. Build and deliver a systematic method of engagement, follow up and stewardship

– a personal experience

6. Make your whole organisation capable of legacy fundraising through – knowledge, tools, confidence

7. Integrate everything

8. Gain insight every day and act on it

9. Find and keep great people – staff, volunteers, trustees, leadership

10. Treat each legacy as a gift. Say thank you.

1. The strategy is engagement

2. The outcomes are whatever they tell us

3. The goal is to help them make a gift

Back to the future…

Thank you for listening