A Long-term Legacy: Charitable Giving On The Rise
Published date | 16 October 2020 |
Subject Matter | Corporate/Commercial Law, Family and Matrimonial, Charities & Non-Profits , Wills/ Intestacy/ Estate Planning |
Law Firm | Charles Russell Speechlys LLP |
Author | Mr Richard Honey |
There is nothing like a global pandemic to make us think about our own mortality. The number of clients writing a will for the very first time - or reviewing the contents of wills from years gone by - has increased as a result. People are reassessing plans for the future and making sure their affairs are in order. This might be one reason for recent research suggesting that legacy giving to charities has increased by 56% in the last 12 months, and by 81% between mid-March and June this year.
Future trends?
Research from Legacy Foresight shows total legacy income is expected to reach up to '3.8bn by 2024, although in the shorter term, the number of reported bequests is estimated to have dropped due to delays at the Probate Registry. The impact of house and share prices is also having an effect on the value of charitable bequests.
Legacy income is crucial for charities at a time when other income streams are under pressure; gifts in wills make up about a third of a charity's voluntary income according to Smee&Ford, and drafting a will is the only way to ensure a charity will receive such a bequest on your death. It is a great way to leave a lasting legacy, and there are additional inheritance tax benefits if such a gift equates to at least 10% of your taxable estate.
What should you consider?
Some common considerations we might have when leaving funds to charity might include:
-
Flexibility? Sometimes there can be a
temptation to restrict how funds can be used in the future, but our
experience in administering estates shows this can have unintended
consequences and gifts might fail completely if the charity is
unable to comply with the instructions you provide. Perhaps consider providing
some guidance to the charity on how to channel your legacy rather
than being too prescriptive.
-
Futureproofing your gift? Factor in the
possibility that some charities unfortunately might not survive a
further recession, or might merge with another charity in the
future. Ensure there
are ways in which your legacy can pass to another charity with
similar aims.
- Which charities? This is such a personal decision for individuals to make, and often clients leave money to charities they feel passionately about, or they (or their loved ones) have personally experienced in action. Interestingly, local causes...
To continue reading
Request your trial