Top legacy takeaways from 2022

Lucinda Frostick, Director of Remember A Charity, shares her take on 2022. 

It’s been another year bursting to the seams with change. The early weeks of 2022 brought a much-needed sense of relief as the nation emerged from the height of the pandemic.

But any relief was short-lived as the tragic news unfurled of Russia’s invasion of Ukraine. Energy bills and living costs rocketed, with inflation reaching 40-year highs. Political chaos ensued alongside a series of budget announcements, punctuated by the deeply sad news of the Queen’s death. 

After such a rollercoaster of a year and my first in post here at Remember A Charity, what are my top takeaways for legacy fundraising in 2022? 

Legacies may be a slow burn, but fundraisers are agile 

In the current environment, legacy fundraising is far from slow. As a sector, we’ve had to be robust, resilient and agile, shifting our plans in response to what’s going on in the wider world; be that the Ukraine invasion or the Queen’s passing in the middle of Remember A Charity Week.  

Across the legacy landscape, fundraisers recognise that what messaging works for people right now might not be the same as it was last year or even last week. Planning legacy campaigns is always important, but we need to be responsive to change too.  

Legacy fundraisers are having to continue to watch and listen. Wider use of digital channels enables them to test, learn and adapt more readily than they might do otherwise. And it’s this agility – a factor not always associated with the legacy world – that has been crucial in the delivery of relevant and timely legacy campaigns this year. 

Legacy messaging needs to chime with the cost-of-living crisis 

There’s no shying away from the fact that living costs are rising rapidly and almost everyone will be feeling greater financial pressure to some extent. This impacts people in a range of ways, whether it means newfound fears around putting food on the table and supporting their families, keeping their jobs or businesses going, or longer-term worries about their children’s and grandchildren’s futures. 

In other words, the crisis is too big and too widespread to be ignored. It’s a sensitive external market and this has to be considered in the way we frame the legacy ‘ask’.  

Within this environment, legacy fundraising can have even greater resonance. After all, there’s little upfront cost in writing a gift in your Will. Plus, at a time where poverty is increasingly evident and the vital role of charities comes into even sharper relief, the opportunity to leave a meaningful gift to a cause that aligns with your values and promises to deliver, not only now but long into the future, can be deeply compelling.   

Tips from our members for legacy fundraising in a cost-of-living crisis emphasise the importance of nurturing supporter relationships, of delivering great stewardship and of demonstrating the tangible impact of legacies on the charity’s work now, while also painting a picture of what they can achieve in the future. 

The tax incentive has become even more compelling 

No-one likes the idea that so much of their hard-earned income is going to the taxman at the best of times. But, against the current economic backdrop, it will come as little surprise that the fiscal incentives and efficiency of legacy giving can be an even more powerful component of the legacy message.  

From a range of ‘how to’ videos we launched on YouTube this Autumn, understanding the Inheritance Tax break on gifts in Wills was the topic that exceeded all others in popularity with around 90,000 views. (You can watch that video here.)   

What’s more, the rise in property prices in recent years is pushing a record number of estates over the line of the inheritance tax threshold, with IHT receipts rising from £5.1 billion in 2019/20 to £6 billion in 2021/22 and set to reach £8 billion in 2026/27.  

The impact of all this is that the IHT is not only a relevant factor for more estates, but that more people are looking for ways to reduce their tax bills. Tax relief can be a powerful conversation opener for gifts in Wills for legal and financial advisers too, so it seems that now’s the time to dial up that message. 

Legacies are more important now than ever! 

Despite the events of the past 12 months, there’s also been an overwhelming sense of resilience and unity around legacies.  

There’s widespread recognition of the need and right to celebrate having made it through another tough year; of the fact that legacies once more had a major part to play in sustaining charities and funding services. And that – in promoting legacies – fundraisers have been able to give supporters the opportunity to do something meaningful and leave a gift that will help beneficiaries long into the future. 

With this year’s legacy market expected to bring in a record £4 billion, legacies will surely contribute an even larger share of the income pie than in years gone by. That funding will be critical.  

As we move into 2023, the challenge remains for fundraisers to continue to argue the case for legacy budget and investment internally while there is also the need for more immediate funding. It’s not always easy, but with legacy income underpinning the sector and offering likely returns of over £40 billion in the next ten years, it’s simply too large a pot to be excluded.  

Here at Remember A Charity, we know how crucial it will be to keep legacies front of mind throughout the year. We’ll be stepping up our consumer campaigns with our first burst of digital activity and PR landing in January.

Our aim is not only to build understanding around legacy giving but spur people into action, whether that means going to our website to find a charity in the consortium that’s close to their heart, connecting with a solicitor in their local area or turning to our chatbot to find out more.

We’ll also be working to expand our partnerships with legal firms and wealth advisers to grow our network of legacy giving advocates beyond the sector, and more. 

If you’d like to find out more or to join the campaign, please get in touch with me here.