Legacies

Legacy income is a vital source of income for many charities, but supporters are often not aware that charities need legacy funding. A survey by the Institute of Charity Fundraisers showed that a gap exists between regular giving and legacy donations. Although 65% of the public regularly give to charities, only 13% donate in their wills.

A legacy is totally free of Inheritance Tax. The value of an estate for tax assessment is reduced by the value of the gift, so the tax liable on an estate can be reduced or even eliminated. There are 3 main types of legacy:

One way of making current or potential supporters aware of the difference a legacy can make is via a direct mailing. This could contain a personal letter explaining the charity's work and the impact it has, as well as the charity's general information leaflet. With smaller charities, it can sometimes be easier to demonstrate the difference a bequest will make through face-to-face contact with the donor.

There are lots of examples online of suggested wording for wills and legacies, for example, the Dog's Trust has the following information.

Encouraging legacy giving is a long-term fundraising strategy, as it may be many years before your charity receives the legacy.

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