Experts reveal their aspirations for the future of legacies
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IN JANUARY this year Legacy Futures – the leading legacy consultancy – published its predictions for the legacy market for 2022. This year of all years is likely to be a significant one for legacies and the Legacy Futures’ 2022 Vision: What can we expect from legacies this year? is more relevant than ever. The document carries the views of four leading figures in the organisation on what charities need to do to maximise legacy income in a growing market, and what are seen as major stand-outs for the year ahead. Its CEO Ashley Rowthorn cited investment in people as being the biggest issue for the coming year. Charities have to ensure they have the human resources to deal with what could be a major ‘surge in generosity’. “We know from research, including our legacy marketing benchmarks project, that charities that invest more in stewardship convert more supporters into legacy donors, and at a higher value,” he wrote. “But while there is undoubtedly more investment going into acquisition marketing campaigns, there is little evidence that charities are investing the necessary time and resource to steward all these new prospects over time.” He referenced the challenges facing probate, among others, as areas where stewardship is crucial. “Do this badly,” he said, “and we can cause significant reputational and financial risk to our charities. But do this wonderfully and we can create life-long relationships that may even turn into more legacy giving in the future.” The continued uncertainty surrounding probate is the key issue picked out by Jon Franklin, an economist at Legacy Foresight – one of the constituent parts of Legacy Futures. He referred to a complicated ‘ecosystem’ surrounding estate administration, adding that “the need for many different organisations and systems to work together has become more prominent as we’ve waited for the much-anticipated legacy surge.” He pointed to the fact that, just as one part of the system seems to be recovering, another part sprouts problems. The devolved legal systems of the UK nations add to the headache for charities, he observed. “Whilst we hope that the system continues to recover as we move into 2022 and that bequests continue to flow to charities,” he wrote, “it seems inevitable that the sector will need to be prepared for uncertainty – uncertainty over when donations will arrive, the volume of work from one month to the next, and what pressure this will put on legacy administration teams.” A rise in the importance of universities as players in the legacy
market is the key theme for 2022, according to Caroline Waters, programme and client services manager at Legacy Foresight. She pointed out that, in a market that has seen specialist causes gain ground in the past year, universities are among the fastest growers of all, with an average bequest of £76,500 compared to £29,000 in the broader sector. That rising importance will be mirrored in increases in investment in legacy marketing and, crucially, specialist staff. “Universities shape lives and people are deeply connected to them and subsequently they will already be receiving significant inmemory gifts, even if those gifts are unrecognised,” she stated. “The future potential is huge.” She also pointed to the importance of good stewardship to avoid alienation. “With the in-memory market potentially being worth as much as £2.2bn, universities could be missing out if they don’t have the right skills, training and experience.” Lucy Lowthian, a consultant at Legacy Voice – another part of Legacy Futures – tapped into a trend seen by a number of sources in the sector: the weakening of the taboo surrounding talking about death. The pandemic and its pervasiveness have led to a greater openness in tackling the issue, accompanied by a further increase in people making wills. Prompted by having had the conversation herself with her family, she wrote: “Now, at the start of 2022, we have a real opportunity to encourage more people to consider leaving a charitable gift in their will. The tragedy of the pandemic is that mortality is all too front of mind. But at the same time, people are becoming more comfortable in talking about it, and making end-of-life plans. We need to build on this momentum to normalise talking about death and helping people to think about their final wishes – and that includes encouraging people to think about the charitable causes that are important to them.” She made a plea for legacy giving to be recognised for the contribution it makes, echoing the other contributors in stressing the need for good stewardship. Alongside the publication of the predictions of the four experts, Legacy Futures held its first webinar of the year on 27 January. Everything Legacy: What’s ahead for 2022 featured representatives from across the Legacy Futures group sharing their hopes and predictions for legacy and in-memory in the months ahead. The recording can be viewed on the organisation’s website at legacyfutures.com/blog/. q
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