(PDF) - Legacy Foresight

Legacy Matters
The Newsletter of Legacy Foresight
•
Total legacy income 2010 – 2050
£bn, 2012 constant prices
4.00
•
•
•
•
The recession was longer, and recovery more gradual
than anticipated
While consumer confidence is recovering,
recognition that we live in a global ‘risk society’ has
not dissipated – this means that donors are delaying
making legacy decisions as long as possible
Consumers continue to be canny with their money,
thinking twice before buying, and shopping around
for bargains whenever possible. The internet has
made this process easier, triggering a more
consumerist attitude to ‘suppliers’ of all kinds –
including charities
For those with offspring, family needs – now and into
the future – are often seen as paramount, leaving
little space for charity in peoples’ wills
Boomers (especially the childless) are more willing
to downsize their home to save costs and release
capital.
Legacy Matters – Spring 2014 - Page 1
2.95
2
1.31
1.74
2.13
2.30
2050
0
Since our last project in 2010, new factors have emerged:
•
5.16
4
2040
•
•
2030
•
Baby Boomers are a very large cohort, representing
22% of the UK population. Compared to previous
generations (and probably the ones that follow) they
are significantly more affluent
Core Boomer deaths will start to climb in 2020,
peaking in around 2040. The % of people dying
childless will also climb steadily from 2030
As a generation, the Boomers are charitably-minded.
But they are also demanding, want control and proof
of ‘value’
•
2020
•
•
The number of charitable bequests will double from
112,000 to 227,000
The % of wills containing a charitable bequest will
rise from 14.5% to 19%, thanks to a more wealthy,
charitably-minded legator cohort, more people dying
without ‘natural heirs’ and the cumulative impact of
legacy marketing
But remember, pecuniary gifts will continue to rise
faster than residuals, as charities reach out to new
groups of mid-wealth and family households.
By 2050, pecuniary gifts will account for 58% of all
legacies compared to 55% today
In real terms (after taking into account inflation)
legacy income will increase from £2.1bn now to
£5.2bn by 2050.
2010
The project built on the findings of two previous projects,
carried out in 2007 and 2010. The results have been used
to update Legacy Foresight’s long-term legacy market
model, with forecasts out to 2050. All three projects have
confirmed that:
•
2000
Legacy Giving 2050 was a recent project to assess the
outlook for legacy giving in the aftermath of the global
recession. The project explored whether the ‘crunch’ has
resulted in changes in donor behaviour and attitudes
that could have a lasting impact on legacy giving. We
focussed on two key cohorts: the ‘War-Baby’ generation,
born 1930 – 1945 (now 68-83); and the ‘Core Boomer’
generation, born 1946 – 1957 (now 56-67). We are
grateful to our clients for sharing some key findings.
Our latest central forecast suggests that by 2050:
1990
Legacy Giving 2050
spring 2014
Legacy market growth will vary by decade:
•
•
•
•
2010 to 2020 will see slow income growth (averaging
0.8% p.a.), due to a confluence of adverse economic
and social factors; in particular falling deaths, a low
% of childless deaths, the long-lived recession and a
lingering sense of uncertainty
From 2020 to 2030, factors start to work in favour of
the legacy market (with growth of +2.5% p.a.), as
deaths rise. At the same time, the economic
backdrop will be more upbeat, making people feel
richer and more benevolent
2030 – 2040 will be legacy boom years thanks to a
happy combination of stronger economic growth,
accelerating death rates and more childless deaths.
Over this period, real growth rates are expected to
reach 3.1% p.a. – outpacing the nineties boom
In 2040 - 2050 growth will slow somewhat (2.6%
p.a.) although still far exceeding recent years.
Legacy Monitor 2014
exploring in-memory fundraising through events, as well
as updating key benchmark data.
As we enter the seventh year of the Legacy Monitor
benchmarking programme, we are pleased to welcome
seven new charities - Alzheimer’s Research UK, the
Brooke, Greenpeace, Livability, the National Deaf
Children’s Society, Shelter and National Trust for
Scotland - bringing the total Consortium to 67 members.
With combined legacy income of £1.1bn, and over 47,000
notifications recorded, this year’s Consortium represents
53% of the legacy market in value terms, and around
45% by volume.
Working in association with Help the Hospices, we are
offering a special module where hospices can take part in
the programme at a significantly reduced cost. Help the
Hospice members have until June 16th to sign up to the
module, which kicks off on 1st July. For more information,
please contact Natasha Robinson, National Hospice
Support Manager at
[email protected]
Each year we aim to improve and extend the programme.
This year, we’re launching an enhanced set of excel data
sheets, including a series of charts which members can
use to track their own performance against the rest of the
group. We’re also planning a training session on how to
make the most of your Legacy Monitor data.
New members will be invited to join the Consortium in
September 2014 – to reserve a copy of the prospectus,
contact Meg Abdy at [email protected]
Assessing your long-term
potential
For charities starting out in legacies, predicting future
performance can be tricky. Our legacy income is
rocketing now, but can that growth continue? Our brand
is strong, but our supporters are young – what’s their
future value as legators? If we invest in legacy marketing
now, how quickly will it pay back?
We’ve been working with a number of fast-growing legacy
charities to answer questions like these. By combining
future market trends with your own positioning,
performance and strategy, we can help to understand
your future potential.
For more information on our forecasting and scenariobuilding services, visit our website, or email Chris
Farmelo at [email protected]
In-Memory Insight enters its
fourth year
In-Memory Insight is a rolling programme to research
and analyse In-Memory giving and fundraising in the UK.
The project is funded by a “Learning Circle” of charities,
who share costs, information and insight.
Last year’s research focused on performance
benchmarking and market sizing; this time we're
Legacy Matters – Spring 2014 – Page 2
The Learning Circle have kindly agreed to share headline
findings from the first three years of research with the
sector. To reserve a copy of the summary report, email
Meg Abdy at [email protected]
Clear Foresight awards the
rising stars of legacy
management
Clear Foresight is a joint venture between Clear
(developers of FirstClass) and Legacy Foresight,
combining our skills in data analysis and software
development to create the next level of legacy
intelligence. We are proud to sponsor this year’s award
for the highest achieving CiCLA student. The award will
be presented at this year’s Institute of Legacy
Management conference on May 16th.
Legacy Foresight goes Dutch!
Over the years we have received enquiries from many
overseas legacy markets, including Australia, Canada,
Sweden and – most recently – the Czech Republic.
We’re now in conversation with some Dutch fundraisers
about bringing the Legacy Monitor model to Holland.
Local consultants Arjen van Ketel and Jerry Smit have
convened a meeting of 25 large Dutch charities, who
between them command a sizeable share of Dutch legacy
income. We’ll be presenting a comparative analysis of the
British and Dutch legacy markets, and discussing how a
Legacy Monitor-style service could work in Holland.
We hope that Arjen and Jerry will share their thoughts on
the Dutch legacy market in a forthcoming edition of
Legacy Matters.
In preparation for the seminar, we’re learning a whole
set of new words including nalatenschap (legacy),
fondsenwerving (fundraising), pandgever (pledger) and
meervallertje (windfall). Who knows, one day Legacy
Foresight may become Nalatenschap Vooruitziendheid!
Integrating Free Wills into
your legacy strategy
Over the years, Pauline Mayer has been involved in a
number of Free Wills Schemes, including at NSPCC,
British Heart Foundation, The Children’s Society and
now at Cancer Research UK, where she heads up the inhouse programme. Her experience has taught her the
benefits of such an approach when it’s integrated into
a well-rounded legacy strategy. We asked her to share
her views.
Encouraging supporters to write or update their Wills is
an objective for many legacy fundraisers; but what tools
are available, does it really deliver a return on
investment and how can you afford to do it?
There are already several Free Will services available
within the sector. Capacity Marketing, for example, offer
a cold acquisition Free Will Scheme to national charities
whereby the charities pay a set fee to be part of a
consortium and the recipients pay no charge for a
‘simple’ Will. Capacity Marketing report on activity as
soon as Wills are completed, providing data on the
number of gifts included by type and by value, as well as
the personal details so you can contact to thank, which
enables charities to see their long term expected return
on investment. The Scheme is limited to just ten
charities per consortium and currently runs five schemes.
An alternative option is the Free Wills Network, also run
by Capacity Marketing. This is an open service for
charities to join and allows fundraisers to send a targeted
offer to their own supporters at any time of the year, so is
perhaps more accessible for some to use.
Will Aid is a well-known annual Will writing programme,
which takes place each November. With this Scheme,
recipients opt to make a donation in place of paying for
the Will. Again, there are limitations on the number of
spaces and the types of charity which can be involved but
it is now an integral part of an annual calendar of
opportunities to write a Will. The costs of this scheme are
outweighed by the donations received and any future
pledged income is on top of this.
Many charities are also looking at developing their own
Will writing schemes. Barnardo’s became partners with
Quality Solicitors to offer a Free Will to their supporters
and many others are developing or offering various
options, if not working with one of the above
organisations.
Another scheme is Cancer Research UK’s Free Will Service
which is operated by the charity itself, and has been
running over 20 years. Jack Visser and I shared some of
the return on investment figures at last years’ Institute of
Legacy Matters – Spring 2014 – Page 3
Fundraising Legacy Conference. Currently around 70% of
participants choose to include CR-UK in their Free Will
and the average legacy gift received is around £7,000. As
you can see from the chart below, the scheme has
delivered an extremely strong return for the charity.
Has the investment paid off?
Cumulative cost v income, £m
£80
£70
£60
£50
£40
£30
£20
£10
£0
Costs
Income
CRUK
So how can you look to incorporate a Free Will offer into
your own strategy?
Although the examples here are nationwide schemes, the
idea can be utilised and worked within a region or a
smaller locality, for example, centred around a Hospice.
A good first step for any charity starting out on this
journey is to invest staff time in making contact with
legal firms and exploring the possibility of them offering
a free or reduced rate on Will-writing for a dedicated
week or month. You can then incorporate this into a
charity-wide focus on legacy giving during that period.
There are other options; online wills are becoming
popular and we may need to move more in this direction
if this best meets the needs of our supporters.
Development of a Free Will offering of course requires
investment in a longer term strategy, but these schemes
will help to grow the number of gifts you receive in the
future, not only as a direct result of the activity but also
by creating more opportunities to promote charitable
gifts in wills and therefore raising awareness about
legacy giving – to the benefit of the whole sector.
Pauline Mayer, Head of Legacy Development, Cancer
Research UK
This article originally appeared in Legacy Barometer, Issue 4 2013
Newsflash!
Legacy Foresight and specialist arts consultancy Arts
Quarter are planning to update their research on legacy
fundraising in the arts sector. The latest online survey
will be launched during Remember A Charity week in
September, and the results will be available by December
2014. To reserve a copy of the report, contact Meg Abdy.
Bates Wells & Braithwaite’s legacies and contentious
probate team regularly run free legacy updates for
charities. The next seminar is scheduled for 26th June
(details will soon be on the BWB website at
www.bwbllp.com, including booking details). Legacy
Foresight are delighted to be guest speakers at the event
and will be giving a briefing on the latest trends in the
legacy market. The BWB team will be focussing on
trouble-shooting legacy issues regularly experienced by
their charity clients. BWB’s events tend to be very
popular, so if you would like to attend, please fill in the
BWB online form but also let Meg Abdy know direct.
After 12 months of intense development and testing,
along with a complete review of the installation and
upgrade process, Clear is now ready to roll out
FirstClass 4. The ﬁrst two installations of FirstClass 4
are currently under way and should be live by the end of
May.
As with the previous version (FirstClass 2) the software
can be installed ‘In-House’. What was ‘Express’ is now
renamed Shared Hosted - this option allows a number of
charities to access FirstClass on a secure shared server.
The third option is ’Dedicated Hosted’, where a client has
the sole use of a server that is provided and managed by
Clear. This provides much of what In House can provide
without the IT overhead that approach brings.
The Institute of Legacy Management (ILM) is proposing
a merger with the Institute of Fundraising (IoF). The
Boards of both organisations believe that coming
together has many benefits, including greater exposure
and awareness of legacy management; a more joined-up
approach to legacy fundraising; enhanced benefits for
ILM members and improved operational efficiency at ILM.
The proposal is for the ILM to become an IoF Special
Interest Group – it is hoped that this new structure will
allow ILM to deliver more efficient services without losing
the ILMs strong sense of community. ILM members are
being consulted on the plans, which will be discussed at
the ILM annual conference on May 16th.
Legacy Matters – Spring 2014 – Page 4
On the 17th July, in London, fundraising consultants
John Grain Associates are running a full day’s workshop
on In-Memory Giving. Having worked on programmes in
the UK and USA they will be sharing their key learning
and expertise from the past ten years, and showing
how to transform this area from the reactive into a
dynamic, effective and appropriate activity that can
deliver significantly increased loyalty, engagement
and income. They will share best practice, explode some
myths, demystify Tribute Giving and leave you with the
outline of a comprehensive strategy that is right for
your organisation. Full details at
johngrainassociates.com
Memory Giving, the online funeral collection service has
reported that there has been significant acceptance by
the UK funeral industry, particularly smaller
independents, for online donation collection in the last
year. Funeral directors using Memory Giving have cited
positive client feedback, administrative cost savings,
24hr accessibility, compatibility with social media, the
reduction in cheque usage and Gift Aid recovery as key
advantages over the traditional collection methods.
Funeral directors using Memory Giving now extend
throughout every corner of the UK. Currently their online
collection pages have an average donation value of
£37.87 with the majority qualifying for Gift Aid. For more
details contact Jo Read on [email protected]
Legacy Foresight Associate Kate Jenkinson and her
business partner Mark Cook have joined forces with Bryan
Miller, at his strategic fundraising consultancy strategy
Refresh. They pride themselves on not only providing top
quality strategic advice but also training and supporting
clients to drive forward what they develop together. For
more information, visit http://strategyrefresh.com
Legacy Foresight Ltd
Ashingate
Novington Lane
East Chiltington
East Sussex
BN7 3AU
www.legacyforesight.co.uk

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