The UK has a long history of charitable gifts in wills – from William Shakespeare, who left the princely sum of GBP10 to the ‘poor of Stratford’ to the lesser-known Henry Greene, who died in 1679, leaving money to clothe four women in green waistcoats (to be worn at Christmas).

Legacy giving became more widespread in the 1900s. Over the past 20 years, there has been considerable growth, with more and more people choosing to remember a charity in their will.

A record-breaking year for charitable will-writing

2023 was a record-breaking year for legacies, with market data from Smee & Ford showing that 38,000 estates in England and Wales alone included a charitable gift, benefitting 11,000 charities and community-based organisations. On an annual basis, legacy giving now raises around GBP4 billion for good causes across the UK – up from GBP3.1 billion in 2016/17.¹

This income has become essential to many charities’ survival in challenging economic times and to their ability to deliver services for beneficiaries in need. Currently, gifts in wills fund over half of the British Heart Foundation’s lifesaving research. They fund one in six patients supported by the bereavement and palliative care charity Sue Ryder and are transforming the future for a growing number of small and local charities.

It will come as no surprise that those with considerable wealth are most likely to leave a gift, along with people who are child-free, but legacy giving is gaining ground at a mass market level. So much so, that one in five charity supporters aged 40+ have now included a charity in their will.² Interestingly, our annual consumer study indicates that while legacy giving is prominent among Baby Boomers, take-up is higher still among those in their 40s and 50s, where almost four in ten (37%) of those with wills have included a charity.

There are many elements that have contributed to this growth, including greater public awareness and the fiscal incentives. We believe that one of the most critical drivers is the increase in professional advisors making clients aware of the option of including their favourite charities in their wills.

The role of estate practitioners

Recognising that today’s clients are increasingly values led and want to know their options, we’re seeing more solicitors, will writers and other estate practitioners regularly mentioning the possibility of including a charitable gift with clients, whether during will writing or tax planning.

In fact, our professional advisor tracking study shows that almost three in four solicitors and will-writers always or sometimes bring the topic up with clients proactively.³ And more still (four in five) highlight the generous inheritance tax (IHT) incentives, with charitable gifts being tax-free and donations of 10% or more of the estate’s net value being eligible for a reduced IHT rate of 36%.

The reason this is so important is that charitable giving isn’t always front of mind when people approach estate planning. After all, when people are likely to be writing their wills – often prompted by a house move, a change in marital circumstances, the birth or death of a loved one – there’s a great deal going on in their lives. It’s little surprise that, when asked why they didn’t include a charitable gift in their will, one in four charity supporters tell us that it just didn’t occur to them at the time.⁴

However, when a professional advisor mentions the option of including a charity, research from the Behavioural Insights Team demonstrates how impactful those conversations can be.

The study finds that even the simplest reference to the option of leaving a charitable gift during will writing doubles the chances that a client will do so. The ability to reassure clients that they can take care of all those things they care about in their wills is crucial, along with addressing any myths or misunderstandings the public might have.

Looking beyond the will-writing sphere, recent research with wealth advisors has identified the opportunities and advantages of approaching empowering and inspiring legacy conversations with high-net-worth clients.

As we teeter on the cusp of the largest intergenerational wealth transfer, the potential is substantial for professional advisors, not only to support their clients in achieving their charitable goals beyond their lifetime, but to embed this form of philanthropy as a social norm.

Find out more about Remember A Charity, the impact of charitable gifts in wills and the consortium’s resources for professional advisors at www.rememberacharity.org.uk.

Lucinda Frostick, Director of Remember A Charity