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Unlocking the pot of gold in legacy giving
Michele Madden and Caterina Violi
October 2011
Tel: 020 7426 8888
Email: [email protected]
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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