Legacy income remains resilient lifeline for charities, despite slow growth

The latest Legacy Market Review from Legacy Futures was published this week, revealing that, despite the challenging economic environment, the legacy market has remained resilient, raising £4.1bn for good causes across the UK in 2023/24.

While legacy growth has slowed in recent years - reflecting the subdued housing market, probate delays, and fewer deaths - average legacy values have now reached £28.9K.

Key findings include:

• The average legacy value stands at £28.9k — slightly above its 2021/2022 peak of £28.5k
• Lower than expected death rates result in reduced bequest numbers
• Adjusted for inflation, the spending capacity from legacy funds is projected to decrease by over 6% between 2023/24 and 2026/27
• As house prices are projected to rise modestly in 2024/25 before accelerating, and the number of deaths will rise, a favourable outlook for legacies emerges 

Legacy income continues to show resilience and serves as a crucial source of funding for UK charities, even amid slower growth in recent years. In 2023/24, legacy income reached £4.1 billion—a modest 1.3% increase from the previous year. This performance, though below the long-term growth trends, remains a major contribution to the charitable sector, particularly in light of ongoing economic and political challenges.  

Ashley Rowthorn, CEO of Legacy Futures, suggests charities should be focusing now on their planning to be future-ready: 

"The long-term outlook for legacy income is brighter than it has ever been, yet short-term challenges persist. While legacy income remains stable, inflation is impacting charities' purchasing power, tightening budgets and cash flow. Charities must stay informed of the external drivers of legacy income to understand market influences on their performance and to plan effectively.  

“The time is now; investing in legacy fundraising today will allow charities the time to build and secure a lasting income stream into the future as the market develops and grows — a strategy that will help them navigate economic uncertainties and sustain impact for decades." 

Lucinda Frostick, Director of Remember A Charity says: 

"Legacies are an increasingly vital income stream for a growing number of charities, strengthening resilience and sustaining charitable work through challenging economic times. This is a reflection of the dedicated focus given to legacies over the years, both within charities individually and in working collectively. As we look to the future and consider the anticipated growth of the legacy market, it shows how crucial legacy fundraising will be to ensure a thriving charity sector and charitable services for years to come.” 

See the full Legacy Market Review or access more data at Data Dashboards - Legacy Futures.