Understanding charity beneficiaries by Remember A Charity

Why should we consider gifts in Wills and how we communicate with charity beneficiaries?

Because legacy income for the charity sector is significant. Here at Remember A Charity, we know that the continued support of legal professionals is a key reason why charity income from gifts in Wills is increasingwith this form of giving being up 43% in the last decade*. Through consistently making clients aware of the option to give in this way, and by showing your support for this form of charitable giving through joining initiatives such as our Campaign Supporter scheme and other Will-writing schemes, Law Society members are playing a vital role in helping public awareness and appetite for gifts in Wills to continue to grow.

Whilst both keen to ensure client wishes are upheld, we know that charities and the legal sector often come at estate administration from a very different perspective.

Understanding why this might be was the subject of our recent Campaign Supporter webinar on how to communicate effectively with charity beneficiaries about gifts in Wills. Here’s some of our top tips and insights:

Charities operate under a legal and governance framework

Charities are required to navigate a complex maze of red tape in order to satisfy the requirements of both the Charity Commission and of their auditors, which mean that they have a moral and legal duty to ensure funds are claimed and accounted for in a timely way.

This includes maximising the value of assets disposed of on their behalf, making best use of tax exemptions (both in relation to Capital Gains Tax and Inheritance Tax on the estate), and the need to demonstrate that they have done so to their auditors.

With gifts in Wills forming around significant part of their income, charity auditors place a huge emphasis on ensuring a strong audit trail, so charities may come to you with lots of questions. Often, it’s to complete a form or reassure trustees and auditors around due diligence so be open and receptive to their needs.

Alert charities to any potential issues

Most probate cases run smoothly, but a small proportion will encounter some kind of issue – from disputes over the validity of the Will, to delays and complexities associated with the selling of properties. For a large charity this can mean dealing with hundreds of difficult cases each year. Alerting them early to any potential challenges means you can work collaboratively to find a resolution, saving you time and helping to prevent a frustrating to-and-fro of correspondence. Keeping an open dialogue, we’d encourage you as solicitors and Will-writers to keep charities in the loop wherever possible, giving timely updates on the estate, and the likely next steps.

Timing is crucial, particularly when it comes to particularly sizeable gifts, which can have a transformative impact on the charity and therefore could influence key investment decisions. Understanding when funds are likely to arrive helps charities manage cashflow and improve their forecasting, enabling them to plan ahead and budget for the future - a key factor for charities looking to maximise their efficiency.

Some gifts will be more difficult for charities to accept Charities are grateful for all gifts, no matter their size and shape. However, some gifts will be more difficult than others for charities to accept. For example, they may be too hard to dispose of or selling/maintaining them will in fact cost the charity more than the gift is worth. For example, an ivory statue could cause problems for a charity with either legal issues or going against their ethical guidelines (depending on the age of the item). Similarly, particularly valuable items such as a violin may need to be accompanied by care guidelines and may require funding to enable the charity to properly maintain them. And restrictive guidelines asking charities to use funds for a specific purpose, which the charity cannot meet when the Will comes into effect decades later, can also prove challenging.

So, if a charity is unable to accept a gift in that form or requests an opportunity to discuss or explore alternative options, this is unlikely to be that they are don’t want or need the funds - but simply that they are keen to find a way forward that meets their own requirements, whilst still fulfilling the donor’s wishes.

Charity staff have varying levels of legal understanding

Many charity staff within financial or legacy administration teams you deal with will be qualified and well versed in the process of dealing with charitable estates, but this won’t always apply - particularly when dealing with charities that are new to gifts in Wills and haven’t been named as beneficiaries before.

It is therefore best to communicate by email wherever possible, and to be patient and allow sufficient time when it comes to any required decision making on the part of the charity, as the individual you are speaking with may need to double check with colleagues or seek other advice before proceeding. Try to keep the language in all correspondence easy to follow, minimise jargon, and manage expectations in case they are unfamiliar with the process.

Network locally with charities

A positive relationship can be a win-win for business development – with potential opportunities such as the chance to ask for your details to be featured in digital marketing collateral, or to raise your profile by offering support at a Q&A session for the charity’s staff and/or supporters. Charities will often seek out corporate support, and in turn this can offer you a great opportunity to build relationships and attract more clients; after all, charity staff may not have written a Will yet themselves.

With a mission to normalise giving to charity from your Will, our free Campaign Supporter scheme gives Will-writers access to resources and exclusive digital marketing assets to help you start up those all-important legacy conversations. All Campaign Supporters are also listed in our searchable directory for those looking for help in writing their Wills.

To find out more about our Campaign Supporter scheme for solicitors and Willwriters, visit: www.rememberacharity.org.uk/ advisers

You can also join our dedicated LinkedIn Group for Professional Advisers, to network with likeminded legal professionals and keep up to date with all the latest developments when it comes to gifts in Wills.

Ref:

*Remember A Charity Consumer Benchmarking Study 2022, OKO