This document provides information about legacies and charitable bequests. It defines a legacy as money or property left to someone in a will. Legacies are free of inheritance tax, and charitable bequests help reduce the tax rate from 40% to 36% for estates leaving 10% or more to charity. The main types of legacies are specific, pecuniary, reversionary/contingent, and residuary. In 2011, legacy income was worth £1.85 billion pounds. Legacies provide a high return for charities, with £25.50 generated for every £1 invested. The document discusses legacy marketing strategies and lists useful websites for more information.

1. Legacies (in 60 minutes)

2. Declaration
 All information is given by the Institute of
Fundraising as current best practice, or is
existing research which is credited. However,
this is not a substitute for professional legal or
financial advice.

3. What is a legacy?
Noun (plural legacies)
 an amount of money or property left to
someone in a will.
 something left or handed down by a
predecessor: the legacy of centuries of
neglect

4. Legacies
 Charitable legacies (bequests) are free of
Inheritance Tax
 Inheritance Tax is charged on the value of an estate
over and above the Inheritance Tax (IHT) threshold
(nil-rate band) of £325,000 for individuals and
£650,000 for married couples/civil partnerships
 Inheritance tax is currently charged at 40%
 From 6th April 2012, the rate of inheritance tax was
reduced to 36% for estates leaving 10% or more to
charity

5. The Main Types of
Legacy
 Specific
 Pecuniary
 Reversionary/Contingent
 Residuary

6. Legacies –
Key Statistics
 In 2011, legacy income was worth £1.85bn
 Pecuniary bequests represent 54% of all notifications
 Residual legacies account for over 80% of income
 Pecuniary legacies have an average value of £2,600
 Residuary legacies have an average value of £53,900
UK Giving 2011, Legacy Foresight: Legacy Matters Autumn 2012 &
Legacy Bulletin Issue 1/2013

7. Legacies -
 Whilst 58% of the population give to charity during
their lifetime, only 7% remember a charity in their
will
 Income is rarely predictable
 Talking about death and money in the same
sentence!?

8. Legacy
 65% of all charitable wills are left by females
 On average legators leave 3 charitable
bequests
 You die on average 4.1 years after the last
change to your will
 Average female legator dies at 82
 Average male legator dies at 77

9. Legacies – Motivations
 Existing donor of the charity
 Connection with the cause
 Friend/relative that has a connection with the
cause
 Always supported the charity – even if never
donated
 To stop tax man getting the money
 No-one else to give it to
 No-one else needs it….

10. Fundratios 2011
Voluntary income per £1 invested
Total Voluntary… £4.24
Local fundraising £1.75
Committed… £3.54
Direct Marketing £1.67
Special Events £1.94
Competitions/… £1.73
Major Donor… £3.17
Legacies £25.50
Trusts £7.00
Corporate £4.43
Copyright: Centre for Interfirm Comparisons/Institute of Fundraising

11. Legacies –
Marketing: Smaller
Charities
 Legacy stories in newsletters
 Including legacy request in talks
 Articles in local paper
 Inform solicitors, local businesses and trustees
 Make sure everyone knows that your charity needs
the money!

12. Cancer Research UK
http://www.youtube.com/watch?v=EUQo3m3tGB0

13. Legacies –
Larger Charities
 Communication programmes
 Seminars
 Advertising (The Law Society Gazette)
 Direct Appeals to existing donors
 Dedicated staff to visit
 Pledge cards
 Enhanced ‘donor care’ programmes

14. Legacies –
Lifetime Legacies
 Lifetime Legacies are a form of split interest
trust, much used in the US. They allow a donor to
make an irrevocable gift to a charity during their
lifetime, of shares, property or cash, while retaining
the benefit of the income or use of the gift for the
term of their life. The donor can make deductions
against CGT at the time of the gift and its value is not
counted as part of their estate for the purposes of IHT.

15. Legacies –
Tribute Funds

18. Legacies – Donations
in lieu of Flowers

19. If you would like to hold a collection for Alzheimer’s Research UK in lieu of flowers at your loved
one’s funeral there are several ways to donate or create an in memoriam fund:
•By Phone - If you would like to talk to us about how your loved one can be remembered with a gift
to Alzheimer’s Research UK, please call us on 0300 111 5555
•
Online - If you would like to donate over the internet please go to our donation page
•
Create an online fund at Much Loved or Memory Giving. You can also donate via other online
services such as Just Giving, Virgin Money Giving or BT MyDonate.
•By Post - Please send cheque(s) made payable to Alzheimer’s Research UK, The Stables, Station
Road, Great Shelford, Cambridge, CB22 5LR
•
In memory collection envelopes - Our collection envelopes are a convenient way to collect
donations at a funeral or memorial service. Family and friends can also include a message. Please
contact enquiries@alzheimersresearchuk.org for more information.

20. Legacies –
Remember a Charity
 Remember a Charity exists to increase the number of
charitable legacies and to make it a social norm in the UK
 A consortium of over 150 charities, the largest consortium
of charities in the UK, hosted by the Institute of
Fundraising
 Represents a diversity of causes and sizes and
membership
 Is open to all UK registered charities
 Uses TV, Radio, Press and online advertising and PR to
reach the general public & will-making professionals
www.rememberacharity.org.uk

21. New Products:
iTomb

22. Café du Mort
http://www.youtube.com/watch?v=44TBJOSePE

23. Useful Websites
 www.tax-effective-giving.org.uk
 www.institute-of-fundraising.org.uk
 www.direct.gov.uk/giftaid
 www.hmrc.gov.uk/charities Tel: 0845 302 0203
 www.payrollgivingcentre.org.uk
 www.rememberacharity.org.uk
 www.charity-commission.gov.uk

24. Contact Details
Institute of Fundraising Academy
Park Place, 12 Lawn lane, London, SW8 IUD
Tel: 020 7840 1020
Website: http://www.institute-of-
fundraising.org.uk/events-and-training/help-for-
small-charities/
E-mail:
smallcharities@institute-of-fundraising.org.uk
Registered Charity No: (1079573) in England & Wales, (SC038971) in Scotland
Vat Registration No: 547 8930 96