Legacy fundraising

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Facts about legacies: did you know..? 

• Legacies are a major source of income for many non profits.
• Effective legacy marketing and promotion can pull in legacies quicker than most people think (as soon as two years) but it is a medium term strategy.
• In a dynamic organisation they are immensely useful for building and maintaining financial reserves, for providing investment in service development.
• But in a static, conservative organisation they can encourage complacency, overblown reserves and hinder other fundraising efforts.

Many non profits benefit from legacies not just charities, but the charity sector is a major beneficiary getting a round 6-7 per cent of their income from this source. While nonprofits of all sizes benefit from legacies, the larger household names benefit most. But this need not be so. Smaller organisations which have good affinity with supporters can achieve legacy income if they seek it appropriately, but relatively few do seek out legacies

Two kinds of legacies

Pecuniary legacies are where someone, in a will, specifies that, say, £2,000 should be left to a person or organisation. Residuary legacies are where, after all the pecuniary legacies have been paid out, the remainder (ie residuary) of the dead persons estate goes to a person of organisation. In legacy marketing residuaries tend to be more valuable but pecuniaries are easier to achieve.

The codicil is a short, simple legal document which can be appended to a will which can easily amend an existing will to add a fixed sum (effectively a donation) to be given to a nonprofit

Getting started with legacies

Start with your supporters and service users

If you are at the beginning of seeking legacies actively, the best place ot start is among your existing supporters and/or existing service users. Traditionally nonprofits felt that asking supporters and beneficiaries was dangerous because it would offend supporters and make beneficiaries feel that there services would be compromised if they did not comply. Deep down was the cultural norm that it was improper/unseemly to talk to a person about their death.

Views on this have changed, partly because death is no longer a taboo subject and partly because charities like RNIB, Cancer Research UK and others have successfully promoted legacies among supporters and beneficiaries without adverse effects. We all know we are going to die one day and doing a little planning is sensible

Your case for support is the trigger

Legators want to know how their legacy will be used, at least in general terms – so describe your need well and graphically using examples

Build a relationship

Tell them clearly how they can mention you in their will and encourage them to tell you, so as you can build a relationship.

Doing it through contacting their solicitor or filling in a codicil and letting you know that they have done so, so you can thank them and keep in touch with them. More dynamic nonprofits invite people who have pledged to include the organisation in their will, to come along to small receptions where they can hear about the work personally and more intimately – thus building a relationship with the legator.

Promoting legacies 

If you want comprehensive guide and a template to construct your own legacy leaflet and a legacy marketing pack to help you get started then

• buy/borrow “Legacy Fundraising” edited by Sebastian Wilberforce (on Amazon)
• consider joining the Remember a Charity consortium.

Expanding your legacy income base 

Many non profits receive some legacy income, seemingly by chance, and want to pro-actively promote more legacy income. 

Research who has left you money and why

This is easier said then done when the donor is no longer with you! But often friends may know of why; your organisation may know of links to the legator; sometimes the solicitor or executor will be able to help. 

Target similar people for legacies

Target more people similar to those who have already left you money. Chances are that there are more people like your previous legators out there and if you can find them and ask them appropriately, they also will be sympathetic. How you ask them is for you to judge but common methods are by letter (initially); by advert; at events; through leaflets in your annual report etc – making it as easy as [possible to do and to let you know

Further information 

• Charity legacy code of conduct at Institute of Fundraising
• Legacy Foresight: analysis and forecasts about legacies.
• Join the Legacy Marketing Yahoo group
• Creating a lasting legacy, article from Charity Times

Have your say 

Talk to others on our fundraising forum.

Why not write a case study about your experience to help others learn from what you have done?