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Unlocking the pot of gold in legacy giving

Michele Madden and Caterina Violi

October 2011

Tel: 020 7426 8888

Email: caterina.violi@nfpsynergy.net

Web: www.nfpsynergy.net

A complex process “A lot of people don’t like to talk

about death, that’s why my

parents didn’t leave a will” Female, 65-75, Birmingham

“Making wills is all

about family”, Male, London

“I did it to include

charity because I

always keep hearing

how much goes on

admin and how much

actually sort of gets

there.” Female, London

“I haven’t got

that sort of

money” Male,

55-65, London

“You can’t really say a certain

amount because you don’t know.

You could end up giving

everything to the charity because

you’ve spent all the money and

then the family has nothing.” Female, 55-65, London

Understanding the key barriers and how to address them

Choosing the cause and the

charity

Family first

Writing a will

Personal Finances

Own mortality

Understanding the key barriers and how to address them Own mortality

Choosing the cause and the

charity

Family first

Writing a will

Personal Finances

Own mortality

5

Attitudes and barriers

• 2 Mindsets: Non-fearful, Fearful

• Waiting for the „right time‟

• Value and dangers of unspoken conversations

• Light-heartedness and humour

• Superstition

• Starting conversations about own death and dying

• Initiating conversations with another person

6

What can we do?

• Writing a will can bring up difficult emotions for people

• Lightness of tone and humour

“Death is not a bright thing but at the same time talking about it hasn’t got

to be all that sad... It’s important to let people know that they can be

cheerful about it…I don’t think it’s all got to be morbid.”

• Showing an understanding of people’s experiences and recognise

the need for reassurance

• Content that resonates with their experience can help turn abstract

concepts into reality

Understanding the key barriers and how to address them Personal finances

Choosing the cause and the

charity

Family first

Writing a will

Personal Finances

Own mortality

8

Uncertainty and planning for the future

• We are living longer

• Consumer confidence today may also be affecting long term

decisions

• A more debt prone society

0%

20%

40%

60%

80%

100%

Not being able to manage personal debts (e.g. loans and credit cards)

Having difficulty paying your mortgage or rent

Being unable to assist your children financially as they grow up

16-24 25-34 35-44 45-54 55-64 65+

Younger generations are more likely to be affected by uncertainty about personal finances

Base: 1,008 adults 16+, Britain. Source: Charity Awareness Monitor, Nov 10, nfpSynergy

Please indicate how worried you are that the following might happen in the future Agree stongly + Agree

Money and life-stage

Source: BHPS / The Future Foundation

£0

£500

£1,000

£1,500

£2,000

£2,500

£3,000

£3,500

£4,000

16-19 20-23 24-26 27-30 30-32 33-35 36-42 43-47 48-52 53-56 57-60 61-65 66-75 75+

Net household income

All expenditure

Essential expenditure

11

Talking about personal finances – money is a private matter

35%

26%

44%

52%49%

30%33%

24% 26%

32%37%

41%

32%

To

tal

Ma

le

Fe

ma

le

16

-24

25

-34

35

-44

45

-54

55

-64

65

+

AB

C1

C2

DE

I often talk to my friends and family about money and personal finances

“I often talk to my friends and family about money and personal finances” Agree+Agree Strongly

Source: NS&I/The Future Foundation/nVision

Base: 1,049 respondents aged 16+, UK, 2009

12

Talking about personal finances – money is a private matter

6%

17%

-29%

-29%

-41%

-19%

-100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100%

Ask about how much you

have left to them in your

will

Ask you to let them know

if you have or intend to

leave the charity a gift in

your will

Definitely not Probably not Not sure Somewhat acceptable Very acceptable

“How acceptable would you find it for a charity you support to do the following?”

Base: Those without a legacy or a will who would consider one, 530 adults 16+, Britain Source: Charity Awareness Monitor, Jul 11, nfpSynergy

What can we do?

• Remember that unsettled financial times affect us all

• Target people at the optimal point of their life for being asked 55+ without alienating them

o Being careful not to add to their feeling of being overwhelmed by communications about death/dying

• Respect boundaries when it comes to asking people about their intention of leaving a legacy

Understanding the key barriers and how to address them Writing a will

Choosing the cause and the

charity

Family first

Writing a will

Personal Finances

Own mortality

Views on writing a will

• Lack of understanding about wills

• Increasingly complicated lives “It‟s something that we keep saying we‟re going to get round to and we

haven‟t…We‟ve both been married before, we‟ve got children from our marriages and I think it‟s very important now that we do something about it … my children or his children could miss out completely.”

• Don‟t leave a mess behind

“You don‟t have an obligation to provide for your offspring and increasingly they don‟t want you to anyway. I think the biggest obligation one has is to not leave them a mess”

Over a third of the UK public has made a will, with the likelihood of having done so sharply increasing among over 55

41% 39%42% 41%

34%

40% 39%42%

50%

36%32%

43%

4%

15%

27%

40%

69%

82%

Sep 0

6

Jul 07

Jul 08

Jul 09

Jan-1

0

Jul-11

Male

Fem

ale AB

C1

C2

DE

16-2

4

25-3

4

35-4

4

45-5

4

55-6

4

65+

Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jul-11, nfpSynergy

“Have you made a will?” Yes

Views on leaving a legacy

• You have to be rich

• The image of legacy givers among „cold‟ audiences

• Concern that legacy may have to be re-written

• The idea of leaving a percentage, or residuals, is difficult to grasp

• Leaving an item of value to a charity

• Considerable confusion about technicalities and legalities

Although there is potential to increase legacy giving, the public remain uncertain about it

Base: Those who have not made a will or have not included charities as beneficiaries in their will, 957 adults, 16+ Britain. Source: Charity Awareness Monitor, Jul 11, nfpSynergy

Would not consider

leaving a legacy, 45%

Don't know, 28%

Would consider leaving a

legacy, 26%

“Would leaving a gift to charity in your will be something you might consider?”

Have informed

the charity 38%

Have not informed

the charity 62%

6%

31%

60%

3%

Have left a legacy in

their will

Have not left a legacy

in their will

Have not made a will

yet

Prefer not to say

Base: 1,000 adults 16+, Britain

Source: Charity Awareness Monitor, Jul-11, nfpSynergy

Legacy giving remains relatively low, although higher among recent and regular donors

“Have you included any charities as beneficiaries in your will?”

20 20

Scepticism about a charity paying for their will to be written even if under no obligation of including a legacy

Base: 1035 respondents 16+, Britain. Source: Charity Awareness Monitor, Jul-11 , nfpSynergy

“If a charity you support offered to pay for your will to be written, no obligation to include a legacy in your will, would you be likely to take up their offer?”

Yes definitely, 5%

Yes probably, 16%

Not sure, 32%Probably not, 22%

Definitely not, 26%

What can we do?

• Find non-threatening ways to help inform and engage

o Awareness of the importance of making a will, but a general lack of knowledge, and a resistance to „interference‟ in the process

• Target the right age group with the right message

• Neutral language to educate and engage people in the idea of leaving a legacy

• Getting people to understand the differences between various ways of leaving a legacy – use case studies to illustrate

Understanding the key barriers and how to address them Family first

Choosing the cause and the

charity

Family first

Writing a will

Personal Finances

Own mortality

Base: All not leaving or considering leaving legacy to charity (687) among 1,000 adults, 16+, Britain.

Source: Charity Awareness Monitor, Jul 11, nfpSynergy

A preference for leaving the estate to the family is the main reason for not considering leaving a legacy

“Please look at the list below and tick the box that most closely represents your MAIN reasons for not leaving or considering leaving a legacy to charity” Main reason+other reasons

1%

5%

3%

5%

8%

9%

52%

22%

21%

24%

28%

30%

31%

36%

21%

14%

0% 20% 40% 60% 80% 100%

A legacy is expensive / difficult to arrange

I'm not planning on making a will

My legacy would not make a difference

I don't think charities should ask for this type of

support

I have supported charities throughout my

lifetime

I haven't thought about including a charity in my

will

I'm not sure how much money will be left when I

die

I'd rather leave my estate to my family

Main reason

Other reasons

Family first

• Salience of this barrier increases with age

• While uncertainty about how much money will have when they die is a stronger barrier for younger age groups

• Those who do not have children are more likely to have included charities as beneficiaries in their will

• The majority of the public agrees that charities need to acknowledge this when asking potential legators for a gift

Projection of number of households in England, by household type 2010 forecast based on 2008 data

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1991 2002 2004 2006 2008 2013 2023 2033

Other withdependent children

Other withoutchildren

Lone parentshouseholds

Couple withchildren

Couple withoutdependent children

Single female

Single male

Source: Department for Communities and Local Government/nVision

Base: England

Households without children are on the increase as a proportion of the population

What can we do?

• Acknowledge the importance of family

• Re-iterate that even a small gift can help and that it won‟t take away from the family

• Give people a practical example of how this may work in practice

o RAC calculator

o Case studies

• Target households with no dependent children which are on the increase

• Particularly couples without children as they tend to be more affluent

Understanding the key barriers and how to address them Choosing the cause and the charity

Choosing the cause and the

charity

Family first

Writing a will

Personal Finances

Own mortality

37%

27%

38%

64%

21%

15%

Cause Fundraising Administration

What the public estimates charities spend What the public considers acceptable

Concerns about how much money goes to the cause are likely to matter even more for legacies than other forms of fundraising

28 Base: 1003 adults 16+, Britain Source: Charity Awareness Monitor, Jul 10, nfpSynergy

“Thinking about the three different types of expenditure- „administration‟, fundraising and the „cause‟, what would you consider an acceptable percentage of the average charity's income to be spent on…” Mean scores

Choosing the cause and the charity

• No clear consensus as to whether the public would prefer charities to spend their legacy in precise ways

o a substantial minority feels they would like to have some control over how their legacy is spent

• Both these potential barriers are likely to be exacerbated by the nature of legacy giving – which implies that donors will not be around to be able to „check up‟

A core minority would prefer to have some control over how legacies should be spent

“To what extent do you agree with the following statements?

30

26%

26%

36%

30%

20%

22%

26%

33%

-100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100%

I would like to specify exactly how

it will be used

If they could not use the gift as I

specified I would want the charity

to check with my loved ones about

how to use it

I would trust them to spend the

money where the need was

greatest

I would like to specify the broad

area of work it would support

Definitely not Probably not Not sure Slightly agree Strongly agree

Base: Those without a legacy or a will who would consider one, 530 adults 16+, Britain Source: Charity Awareness Monitor, Jul 11, nfpSynergy

Leaving a gift to multiple causes

• Most people don‟t think of leaving gifts in will to multiple charities

• Tied to perceptions that a legacy gift is a one off, often very large donation

I give to so many charities, I don‟t know how to make [a legacy] worthwhile for any one charity, because I can‟t leave a great deal...that‟s my dilemma.

• This may mean they don‟t give at all

• If they are going to leave a legacy to only one charity, it will probably be one which is closest to their own situation or experiences

45%

58%55%

53%

45%43%

46%48%

45%42%

50%

40% 39% 38%

32%

37%

42% 41%

57%

47%

57%

42%

Disability Health &

medical

(excluding

cancer)

Hospices Cancer Older people Animals Children and

young people

Environment

and

conservation

Homelessness

and social

welfare

Overseas aid

and

development

Rescue

services

Events in my life led me to decide certain causes were important to me

I feel strongly about a number of issues so I looked for charities that address these

Personal life events are a trigger for supporting Disability and Health charities in particular

“Q4a/b. When you think about your favourite charities, which category do they fall into?/ When you think about your favourite charities and causes, please indicate which statements represent how you came to support them?”

32 Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jan/Jul 10, nfpSynergy

Disability and health charities are among causes receiving the highest amounts of legacy giving

0 200 400 600 800 1000 1200

Accomodation/housing

Animals

Arts/culture

Disability

Enviro/Conservation/Heritage

Economic/community dev

Education/training

General Charitable Purposes

Medical/sickness

Overseas famine/relief

Relief of poverty

Religious Activities

Sport/recreation

Other Charitable purposes

Source: Charity Financials, downloaded Aug 2011

£ 000s

What can we do?

• Making sure there‟s no reason not to give to your organisation

• Being around at the right time with appropriate tools and messages

• Making your organisation the first choice (or one of the first choices) by building a lifetime relationship with potential donors

• Demonstrating what legacies can achieve (and have achieved) so as to reassure people that the money is appreciated and will be well-spent

o Focus on building trust so that gifts are more likely to be unrestricted

Your legacies shopping list

...but you still need to ask

• For a core group of people, one of the most common reasons for not having left a legacy (together with family and uncertainty future finances) is that it simply hasn‟t occurred to them and they have either not noticed being asked or haven‟t been asked

(Remember a Charity Ad)

http://www.youtube.com/watch?v=IyYjU8rF1HU

36

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