Unlocking the pot of gold in legacy giving
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Unlocking the pot of gold in legacy giving

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Unlocking the pot of gold in legacy giving Unlocking the pot of gold in legacy giving Presentation Transcript

  • Content slideUnlocking the pot of gold in legacy givingMichele Madden and Caterina VioliOctober 2011Tel: 020 7426 8888Email: caterina.violi@nfpsynergy.netWeb: 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” “You can’t really say a certain Female, 65-75, Birmingham amount because you don’t know. You could end up giving everything to the charity because you’ve spent all the money and “Making wills is all then the family has nothing.” about family”, Male, Female, 55-65, London London “I did it to include charity because I always keep hearing “I haven’t got how much goes on that sort of admin and how much money” Male, actually sort of gets 55-65, London there.” Female, London
  • Understanding the key barriers and how to addressthem Choosing the cause and the charity Family first Writing a will Personal Finances Own mortality
  • Understanding the key barriers and how to addressthemOwn mortality Choosing the cause and the charity Family first Writing a will Personal Finances Own mortality
  • 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 person5
  • 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 6
  • Understanding the key barriers and how to addressthemPersonal finances Choosing the cause and the charity Family first Writing a will Personal Finances Own mortality
  • Uncertainty and planning for the future• We are living longer• Consumer confidence today may also be affecting long term decisions• A more debt prone society8
  • Younger generations are more likely to be affected byuncertainty about personal finances100% 16-24 25-34 35-44 45-54 55-64 65+ 80% 60% 40% 20% 0% Not being able to manage personal Having difficulty paying your mortgage Being unable to assist your children debts (e.g. loans and credit cards) or rent financially as they grow upPlease indicate how worried you are that the following might happen in the future Agree stongly + Agree Base: 1,008 adults 16+, Britain. Source: Charity Awareness Monitor, Nov 10, nfpSynergy
  • Money and life-stage Net household income£4,000 All expenditure£3,500 Essential expenditure£3,000£2,500£2,000£1,500£1,000 £500 £0 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+ Source: BHPS / The Future Foundation
  • Talking about personal finances – money is aprivate matter I often talk to my friends and family about money and personal finances 52% 49% 44% 41%35% 37% 33% 32% 32% 30% 26% 24% 26% Male Total Female 65+ AB DE C1 C2 16-24 25-34 35-44 45-54 55-64 “I often talk to my friends and family about money and personal finances” Agree+Agree Strongly Source: NS&I/The Future Foundation/nVision11 Base: 1,049 respondents aged 16+, UK, 2009
  • Talking about personal finances – money is a private matter Definitely not Probably not Not sure Somewhat acceptable Very acceptable Ask you to let them know if you have or intend to -19% -29% 17% leave the charity a gift in your will Ask about how much you have left to them in your -41% -29% 6% will -100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100%“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 12 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 addressthemWriting 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 thelikelihood of having done so sharply increasing amongover 55 82% 69% 50% 43% 41% 39% 42% 41% 40% 39% 42% 40% 36% 34% 32% 27% 15% 4% Male DE C1 C2 Sep 06 65+ Jan-10 Jul 07 Jul 08 Jul 09 Jul-11 16-24 25-34 35-44 45-54 55-64 AB Female “Have you made a will?” Yes Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jul-11, nfpSynergy
  • 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 Would consider leaving a legacy, 26% Dont know, 28% Would not consider leaving a legacy, 45%“Would leaving a gift to charity in your will be something you might consider?” 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
  • Legacy giving remains relatively low, althoughhigher among recent and regular donors Have not Have informed informed the the charity charity 62% 38% 60% 31% 6% 3% Have left a legacy in Have not left a legacy Have not made a will Prefer not to say their will in their will yet“Have you included any charities as beneficiaries in your will?”Base: 1,000 adults 16+, BritainSource: Charity Awareness Monitor, Jul-11, nfpSynergy
  • Scepticism about a charity paying for their will to be written even if under no obligation of including a legacy Yes definitely, 5% Definitely not, 26% Yes probably, 16% Probably not, 22% Not sure, 32%“If a charity you support offered to pay for your will to be written, no obligation to include a legacy in your will, would yoube likely to take up their offer?” Base: 1035 respondents 16+, Britain. 20 Source: Charity Awareness Monitor, Jul-11 , nfpSynergy
  • 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 addressthemFamily first Choosing the cause and the charity Family first Writing a will Personal Finances Own mortality
  • A preference for leaving the estate to the family is themain reason for not considering leaving a legacy Id rather leave my estate to my family 52% 21%Im not sure how much money will be left when I 14% 36% dieI havent thought about including a charity in my 9% 31% will I have supported charities throughout my 8% 30% lifetime Main reason I dont think charities should ask for this type of Other reasons 5% 28% support My legacy would not make a difference 3% 24% Im not planning on making a will 5% 21% A legacy is expensive / difficult to arrange 1% 22% 0% 20% 40% 60% 80% 100% “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 Base: All not leaving or considering leaving legacy to charity (687) among 1,000 adults, 16+, Britain. Source: Charity Awareness Monitor, Jul 11, nfpSynergy
  • Family first • The majority of the public agrees that charities need to acknowledge this when asking potential legators for a gift• 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
  • Households without children are on the increase as a proportion of the population 100% Other with 90% dependent children 80% Other without children 70% Lone parents 60% households 50% Couple with children 40% Couple without 30% dependent children 20% Single female 10% Single male 0% 1991 2002 2004 2006 2008 2013 2023 2033Projection of number of households in England, by household type 2010 forecast based on 2008 data Source: Department for Communities and Local Government/nVision Base: England
  • 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 addressthemChoosing the cause and the charity Choosing the cause and the charity Family first Writing a will Personal Finances Own mortality
  • Concerns about how much money goes to the cause arelikely to matter even more for legacies than other formsof fundraising 64% What the public estimates charities spend What the public considers acceptable 37% 38% 27% 21% 15% Cause Fundraising Administration“Thinking about the three different types of expenditure- „administration‟, fundraising and the „cause‟, what would youconsider an acceptable percentage of the average charitys income to be spent on…” Mean scores 28 Base: 1003 adults 16+, Britain Source: Charity Awareness Monitor, Jul 10, nfpSynergy
  • 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 overhow legacies should be spent Definitely not Probably not Not sure Slightly agree Strongly agree I would like to specify the broad 30% 33% area of work it would support I would trust them to spend the money where the need was 36% 26% greatest If they could not use the gift as I specified I would want the charity 26% 22% to check with my loved ones about how to use it I would like to specify exactly how 26% 20% it will be used -100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100%“To what extent do you agree with the following statements? Base: Those without a legacy or a will who would consider one, 530 adults 16+, Britain 30 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
  • Personal life events are a trigger for supportingDisability and Health charities in particular 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 58% 57% 57% 55% 53% 50% 48% 47%45% 45% 46% 45% 43% 42% 42% 42% 40% 41% 39% 38% 37% 32%Disability Health & Hospices Cancer Older people Animals Children and EnvironmentHomelessness Overseas aid Rescue medical young people and and social and services (excluding conservation welfare development cancer) “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?” Base: 1,000 adults 16+, Britain. 32 Source: Charity Awareness Monitor, Jan/Jul 10, nfpSynergy
  • Disability and health charities are among causes receiving the highest amounts of legacy giving Other Charitable purposes Sport/recreation Religious Activities Relief of poverty Overseas famine/relief Medical/sickness General Charitable Purposes Education/training Economic/community devEnviro/Conservation/Heritage Disability Arts/culture Animals Accomodation/housing 0 200 400 600 800 1000 1200 £ 000sSource: Charity Financials, downloaded Aug 2011
  • 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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