Younger Will-Makers Leading the Way in Charitable Legacies?
Recent insights from Remember A Charity's annual consumer tracking study reveal a significant trend: younger individuals are increasingly including charitable gifts in their wills. This shift presents both opportunities and challenges for charities aiming to secure long-term support through legacy giving.
Key Findings from the Study
Prevalence of Charitable Gifts: Nearly one-third (31%) of supporters aged 40 and above with a will have included a charitable gift.
Generational Insights: Among individuals in their 40s and 50s with wills, 34% have pledged a charitable gift, compared to 30% of those aged 60 and above.
Early Commitments: Over half of legacy pledgers reported adding a charitable gift to their will in their 40s (23%) and 50s (32%).
These findings show a growing inclination among Generation X to engage in legacy giving earlier than previous generations which is fantastic news given we’ve (the collective sector ‘we’) been investing in this market consistently for 2 decades now to drive that awareness and consideration. It’s great to see some normalising.
Understanding the Drivers Behind the Trend
Several factors could be contributing to this shift towards earlier charitable legacy commitments:
Evolving Philanthropic Attitudes?
Are younger generations demonstrating a proactive approach to philanthropy? Studies indicate that Generation X and Millennials are increasingly generous, with many incorporating charitable giving into their financial planning at earlier stages. This contrasts with Baby Boomers, who may have prioritised legacy giving later in life. I wonder if this speaks to a genuine more philanthropic approach to financial planning or the prevalence of online will-writing platforms and providers democratising estate planning, making it more accessible and affordable for a broader audience.
Influence of Volunteering
The Remember A Charity reminds us that volunteers are among the most likely to include charitable gifts in their wills. Engagement in volunteer activities often deepens individuals' connections to charitable causes, helping them feel part of something bigger, building trust in the brand and organisation - a key factor in deciding who to include in your will.
Navigating the ‘Volume vs Value’ Conundrum
Individuals without children are more inclined to leave charitable gifts, with 49% of child-free supporters including a charity in their will, compared to 24% of those with children. Whilst this isn’t new news, it is a reminder that charities shouldn’t be too ‘mass’ in their legacy fundraising engagement. Very quickly in the supporter journey, we need to be able to tailor our approach to meet their - often quite specific - needs. I wonder if legacy giving is a more attractive fundraising product to donors in their 40s and 50s who may not have the capacity to support charities given everyday financial pressures on household budgets. What does that mean to the overall lifetime value of a supporter? Average pledge values through online providers are significantly lower than those through solicitor channels, so whilst volume of charitable wills are increasing, is value? Thinking ahead in 20 years time with the rising cost of social care and who knows what additional pressures families will be facing, how many £500-£1000 pledges will be realised?
Strategies for Audience led Legacy Giving
To capitalise on this trend and foster long-term relationships with younger potential legators, charities should consider the following approaches:
Early Engagement: Initiate conversations and communications about legacy giving with supporters in their 40s and 50s. Providing information and resources tailored to this age group can encourage early commitments for when they hit those will-writing trigger points.
Volunteer Integration: Recognise and nurture volunteers as potential legacy donors. Highlighting the impact of legacy gifts and offering opportunities for deeper involvement can strengthen their commitment.
Personalised Communication: Acknowledge the diverse motivations and circumstances of supporters. Tailoring messaging to address factors such as family dynamics can make legacy giving more relatable and appealing.
By understanding and responding to these evolving trends, charities can build enduring relationships with supporters, ensuring sustained impact through legacy contributions. If you’d like to have a chat about how this latest research may influence your Legacy Fundraising Strategy, let’s have a coffee chat up.
