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  1. 1. Legacies (in 60 minutes)
  2. 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. 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. 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. 5. The Main Types ofLegacy Specific Pecuniary Reversionary/Contingent Residuary
  6. 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 £53,900UK Giving 2011, Legacy Foresight: Legacy Matters Autumn 2012 &Legacy Bulletin Issue 1/2013
  7. 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. 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. 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. 10. Fundratios 2011 Voluntary income per £1 invested Total Voluntary… £4.24Local fundraising £1.75 Committed… £3.54Direct 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. 11. Legacies –Marketing: SmallerCharities 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. 12. Cancer Research UKhttp://www.youtube.com/watch?v=EUQo3m3tGB0
  13. 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. 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. 15. Legacies –Tribute Funds
  16. 16. Legacies – Donationsin lieu of Flowers
  17. 17. If you would like to hold a collection for Alzheimer’s Research UK in lieu of flowers at your lovedone’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 giftto 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 onlineservices 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, StationRoad, Great Shelford, Cambridge, CB22 5LR•In memory collection envelopes - Our collection envelopes are a convenient way to collectdonations at a funeral or memorial service. Family and friends can also include a message. Pleasecontact enquiries@alzheimersresearchuk.org for more information.
  18. 18. 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 professionalswww.rememberacharity.org.uk
  19. 19. New Products:iTomb
  20. 20. Café du Morthttp://www.youtube.com/watch?v=44TBJOSePE
  21. 21. 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
  22. 22. Contact DetailsInstitute of Fundraising AcademyPark Place, 12 Lawn lane, London, SW8 IUDTel: 020 7840 1020Website: http://www.institute-of-fundraising.org.uk/events-and-training/help-for-small-charities/E-mail:smallcharities@institute-of-fundraising.org.ukRegistered Charity No: (1079573) in England & Wales, (SC038971) in ScotlandVat Registration No: 547 8930 96