Legacies (in 60 minutes)
Declaration
 All information is given by the Institute of
Fundraising as current best practice, or is
existing research which is credited. However,
this is not a substitute for professional legal or
financial advice.
What is a legacy?
Noun (plural legacies)
 an amount of money or property left to
someone in a will.
 something left or handed down by a
predecessor: the legacy of centuries of
neglect
Legacies
 Charitable legacies (bequests) are free of
Inheritance Tax
 Inheritance Tax is charged on the value of an estate
over and above the Inheritance Tax (IHT) threshold
(nil-rate band) of £325,000 for individuals and
£650,000 for married couples/civil partnerships
 Inheritance tax is currently charged at 40%
 From 6th April 2012, the rate of inheritance tax was
reduced to 36% for estates leaving 10% or more to
charity
The Main Types of
Legacy
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Specific
Pecuniary
Reversionary/Contingent
Residuary
Legacies –
Key Statistics
 In 2011, legacy income was worth £1.85bn
 Pecuniary bequests represent 54% of all notifications
 Residual legacies account for over 80% of income
 Pecuniary legacies have an average value of £2,600
 Residuary legacies have an average value of £53,900
UK Giving 2011, Legacy Foresight: Legacy Matters Autumn 2012 &
Legacy Bulletin Issue 1/2013
Legacies  Whilst 58% of the population give to charity during
their lifetime, only 7% remember a charity in their
will
 Income is rarely predictable
 Talking about death and money in the same
sentence!?
Legacy
 65% of all charitable wills are left by females
 On average legators leave 3 charitable
bequests
 You die on average 4.1 years after the last
change to your will
 Average female legator dies at 82
 Average male legator dies at 77
Legacies – Motivations
 Existing donor of the charity
 Connection with the cause
 Friend/relative that has a connection with the
cause
 Always supported the charity – even if never
donated
 To stop tax man getting the money
 No-one else to give it to
 No-one else needs it….
Fundratios 2011
Voluntary income per £1 invested
Total Voluntary…
Local fundraising
Committed…
£4.24
£1.75
£3.54
Direct Marketing
£1.67
Special Events
£1.94
Competitions/…
Major Donor…
£1.73
£3.17
Legacies
£25.50
Trusts
Corporate
£7.00
£4.43
Copyright: Centre for Interfirm Comparisons/Institute of Fundraising
Legacies –
Marketing: Smaller
Charities
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Legacy stories in newsletters
Including legacy request in talks
Articles in local paper
Inform solicitors, local businesses and trustees
Make sure everyone knows that your charity needs
the money!
Cancer Research UK
http://www.youtube.com/watch?v=EUQo3m3tGB0
Legacies –
Larger Charities
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Communication programmes
Seminars
Advertising (The Law Society Gazette)
Direct Appeals to existing donors
Dedicated staff to visit
Pledge cards
Enhanced ‘donor care’ programmes
Legacies –
Lifetime Legacies
 Lifetime Legacies are a form of split interest
trust, much used in the US. They allow a donor to
make an irrevocable gift to a charity during their
lifetime, of shares, property or cash, while retaining
the benefit of the income or use of the gift for the
term of their life. The donor can make deductions
against CGT at the time of the gift and its value is not
counted as part of their estate for the purposes of IHT.
Legacies –
Tribute Funds
Legacies – Donations
in lieu of Flowers
If you would like to hold a collection for Alzheimer’s Research UK in lieu of flowers at your loved
one’s funeral there are several ways to donate or create an in memoriam fund:
•By Phone - If you would like to talk to us about how your loved one can be remembered with a gift
to Alzheimer’s Research UK, please call us on 0300 111 5555
•
Online - If you would like to donate over the internet please go to our donation page
•
Create an online fund at Much Loved or Memory Giving. You can also donate via other online
services such as Just Giving, Virgin Money Giving or BT MyDonate.
•By Post - Please send cheque(s) made payable to Alzheimer’s Research UK, The Stables, Station
Road, Great Shelford, Cambridge, CB22 5LR
•
In memory collection envelopes - Our collection envelopes are a convenient way to collect
donations at a funeral or memorial service. Family and friends can also include a message. Please
contact [email protected] for more information.
Legacies –
Remember a Charity
 Remember a Charity exists to increase the number of
charitable legacies and to make it a social norm in the UK
 A consortium of over 150 charities, the largest consortium
of charities in the UK, hosted by the Institute of
Fundraising
 Represents a diversity of causes and sizes and
membership
 Is open to all UK registered charities
 Uses TV, Radio, Press and online advertising and PR to
reach the general public & will-making professionals
www.rememberacharity.org.uk
New Products:
iTomb
Café du Mort
http://www.youtube.com/watch?v=44TBJOSePE
Useful Websites
 www.tax-effective-giving.org.uk
 www.institute-of-fundraising.org.uk
 www.direct.gov.uk/giftaid
 www.hmrc.gov.uk/charities Tel: 0845 302 0203
 www.payrollgivingcentre.org.uk
 www.rememberacharity.org.uk
 www.charity-commission.gov.uk
Contact Details
Institute of Fundraising Academy
Park Place, 12 Lawn lane, London, SW8 IUD
Tel:
020 7840 1020
Website: http://www.institute-offundraising.org.uk/events-and-training/help-forsmall-charities/
E-mail:
[email protected]
Registered Charity No: (1079573) in England & Wales, (SC038971) in Scotland
Vat Registration No: 547 8930 96