Is the arts and culture sector missing a trick? Christopher Goodhart urges wider action to promote legacy giving.
Legacy fundraising has received a fair amount of press lately, and for good reason. The impending changes to Inheritance Tax law, which come into force on 6 April, will mean a cut in tax from 40% to 36% for those leaving a tenth of their estate to charity; good news for not-for-profit arts organisations.
But will the changes have the desired result of encouraging more people to leave legacy donations? It would be nice to think so, and the Legacy10 campaign is doing a fine job promoting the opportunity, with the result of some high profile pledges from the likes of David Cameron and Nick Clegg, and top businessmen Richard Branson and Jacob Rothschild.
The giving gap
However, unless non-profit organisations also climb on board and do more to promote legacy giving, it is unlikely the figures will increase significantly. There is at present a huge disparity between the number of people who give to charity during their lifetime and those who leave money in their will. According to Legacy10, despite three quarters of people in the UK giving to charity annually, only 7% leave a legacy donation – far behind rates in the US.
Charities are simply not doing enough to encourage legacy giving. The issue with this type of fundraising is that there are no quick returns; for an organisation with an immediate need for cash, ploughing money and resources into legacy campaigns can appear unappealing.
However charities need both short-term and long-term income strategies, so what can arts and culture organisations do to encourage legacy donations? Running a legacy awareness campaign targeted at existing supporters is certainly one very sensible option. But to attract wider attention, there are a number of additional options available.
Spread the word
Whilst solicitors cannot recommend one charity over another to those making a will, they can ask a client if they have considered leaving a legacy and mention, for example, that the local theatre or museum is also a charity. This can be enough to prompt action, so ensure that your local solicitor is aware of your organisation and its charitable status. Then, should the opportunity to suggest a cause arise, your organisation will be front of mind.
It is also worth looking at your existing legacy donors and seeking similar prospects within your database – this might be based on age, postcode, number of visits, size of donation, or length of relationship. Once you have found a suitable segment, you can mail or email them directly and ask them to remember your organisation.
In addition, it’s a good idea to promote legacy giving as part of your traditional fundraising activity, through advertising, events and leaflets, as well as more directly through your website, newsletter and other multi-channel communications.
The fact is, with many charities in the UK already receiving more than half of their income from legacies, there is no question that legacy fundraising is worth doing, and there is certainly no time like the present to act.
Christopher Goodhart is Strategic Accounts Director at Blackbaud Europe Ltd; Treasurer and Vice Chair at The Albany; and Chairman of The Campaign for Drawing