How to Raise Money from legacies

on behalf of the

Directory of Social Change

by Richard Radcliffe FInstF Cert

• 35 years in fundraising.• 25 years in legacies• I have met over 26,000 donors volunteers and

users of charity services in legacy focus groups• I have helped write over 700 legacy strategies• And trained 1000s in how to make the ask for

legacies• I work throughout the world including USA,

Canada, all of Europe, Scandinavia, Australasia, India, Israel, Singapore, Malaysia

Who am I?

Follow a structure

Research

messaging

Strategy and tactics

Resources

Cultivation and stewardship

Evaluation

Legacy strategies• Research competition, statistics and the marketplace, past

legacies, attitudes (internal and external), motivations, communication needs (through focus groups, one to one meetings online surveys).

• Strategy development aim, objective setting, target audiences, methods of communication

• Cultivation and stewardship suspect prospect legacy enquirer intender pledger

• Resources and budget

• Evaluation – setting activity driven KPIs

Legacies are not to do with death

• A legacy is a joyful act , and only one

method of giving

which is life driven and only death

activated

Legacies are not to do with death

Giving a legacy is joyful.

It is life driven and only death

activated.

FAMILIES

• They are changing• They are challenging more legacies• They are making more Wills

Legacy language• Specific = an item• Pecuniary = cash• Residuary = share or percentage or

fraction of an estate• Reversionary = legacy goes to charity only

after second death• And don’t forget:• Life insurance and death in service

schemes

How a typical Will with a legacy works

• Specific and pecuniary legacies tend to be distributed FIRST

• After these, 100% of residue is distributed and any share or percentage or fraction can be left to anyone or any charity (ie 1% to your charity)

Start in general media then develop more direct methods

Newsletters

Adverts

websiteDirect marketing

meeting

The legacy marketplace UK2001 2014

• Population 59.1m 64.1m• Deaths 601,000 558,478• Charity Legators 29,000 36,000• Charity Legacies 84,750 112,302

Overall….

• Total value to charities: £2.21 billion• 36% of legators leave only one charitable

legacy• Number of charities benefitting increased

from 1774 to 2257 in last 6 years • Source: Smee and Ford (last two slides

and next slide)

Will making

• 38

• 68

• 80

But

• Statistics are much used like a drunk uses a lamppost:

• For support not illumination• And:

• I can prove anything by statistics except the truth.George Canning

Letter of wishes

Demographics

• Number of older people (65+) will double in 20 years

• Number of 85+ year olds will triple• Number of 100+ from 12,641 to 180,000 in

30 years• Longevity threatens future wealth: care

costs £11 billion to £128 billion in 20 years• Capital release schemes: £11 million to

£1.6 billion in just 10 years

How do people want to be asked?

• Direct mail• Telephone• Website• Newsletter• Advertisement• Brochure• DVD• Event (legacy or general?)• One to one?

The answers• Direct mail – 48% say yes but why?• Telephone – 5% only for a follow up• Website – 25% extra information• Newsletter – 100% but does it work• Advertisement - 5% possibly• Brochure 5% possibly• DVD unknown but good!• Event - 95% but what type?• One to one? – 1%…… usually

Research results in general• Nobody wants to be asked for a legacy –

they want to be made aware of the need• They want stories told by someone

credible. They don’t want a “sell”• They want success stories – they hate

failure• They don’t want to use the word legacy

Research results in general

• They want a vision – it proves the need but might not convert them

• They want to know about cost efficiency –they can’t complain when dead

• They like to come to events – they don’t like individual pressure

• They know they need an up to date Will –they are happy to be reminded

Legacy case for support

• Your legacy vision must have:• Past successes• Current successes • Future need – quantify if possible• Cost effectiveness – FR and admin costs be

open if you can• Use of past legacies – favourite stories must be

big and small

Legacy vision

• Must be:• Fundable• Unique• Credible• Inspirational• Tangible

Language

Which do you prefer?• A bequest in your Will• A legacy in your Will• A gift in your Will• Remember us in your Will

More phrases

• Cancer Research UK got £163 million last year from legacies. We only got £X (or £0) – imagine the difference your legacy would make with us!

• 1 in 5 beneficiaries are helped through gifts in Wills

• 20% of our income is from legacies

Phrase development• Imagine the difference a gift in your will would

make to secure our future for generations to come

• If or when the time is right for you to include a gift in your Will please remember us.

• Perhaps you would be kind enough to remember a second family in your Will? Our charity and the families we help

• We rely heavily on donations and gifts in Wills

More phrases!• After you have provided for your own family and friends

perhaps you would consider including our charity in your will

• We fully recognise your loved ones come first but perhaps you could find room in your will for our charity too.

• Or is best to talk about “those closest to you”?• £50 or £5 million – any legacy will help however large or

small even if we prefer big ones!• Every gift in every Will makes a difference however large

or small – even 1%• Live eight years longer leave us a legacy!• Pay as you go

ALL these work if the right objectives are set

Possible objectives for communicating legacies

• Give them the information to act immediately• Make them aware of the outcomes of legacies• To give them a vision so they know the effect of their

legacy• Ask them to promote legacies• To meet the best prospects• To inform them that a legacy costs nothing now• To inform them of tax benefits of a legacy

ALL these work if the right objectives are set

Possible objectives for communicating legacies

• Give them the information to act immediately (committed donors)• Make them aware of the outcomes of legacies (older people)• To give them a vision so they know the effect of their legacy

(younger people)• Ask them to promote legacies (volunteers)• To meet the best prospects (committed donors)• To inform them that a legacy costs nothing now (lapsed donors)• To inform them of tax benefits of a legacy (Wealthy)

Other stakeholders

• Service users and their families: are they legators or promotors?

• Lawyers/writers of Wills: are they interested? Perhaps they can give testamentary information in your newsletter or on your website?

• Staff – what is their role?• Trustees/board members – ????????

Key issues• Direct Mail:

• to whom and why?• Is it an appeal?• Length – is it an issue?• Who signs?• Integrate or separate?• Enclosures: what are they?• Response mechanism?• You must decide what is right for each target audience –

you cannot send everyone the same letter. And if they do not know you need legacies you can’t send them a legacy letter!

Response form

• Easy response: I have already included charity x, I might in the future , please contact me , a gift in my Will is not a way I want to give !

Telephone

• Is it sales or relationship management?• Should legacies be incorporated into an

upgrade call• Who can be called?• What happens next?• Or do you just not do it!

Legacy brochure• Answer

• Legacy vision • Past legacy stories • Wording for Will • Tax savings? (but not that important)• Glossary of terms? • Response mechanism • How to write a Will • Wealth calculator • Technical data?

Legacy section of website• Answer

• Legacy vision (opening link on home page)• Past legacy stories• Wording for Will • Explanation of different types of legacies • Explanation of tax savings? • Glossary of terms? • Response mechanism • How to write a Will • Wealth calculator • Technical data?

Newsletter

• Strategic development:• Stories:

past legacies (told by you); Will writing (by lawyer), vision (by CEO or other worker), funny legacy stories, own stories.

• Response mechanism

DVD

• Short – max 5 minutes if part of a community presentation.

• 20 minutes if sent in the post to view at home.

• Story telling …………..

Event• Is it legacies only• Is it an AGM• Is it an open day?• Is it just a thank you• Best possibly a thank you to all

supporters?• What is the call to action?• What is the follow up?

Event for older people• 11am ish • TOILETS• Soft Food• Comfortable chairs by scattered tables• Easy parking• Bring companion• Prepare questions for asking before and

after event

Snapshot ☺

• Thank you• Past year’s success• Current use of funds - prudence• Future ambitions and ways to make dream

come true (ie a legacy!)• Response mechanism

Advertising• Legal – Charity Choice/Law Society Gazette• Local – brilliant if possible.• National - expensive• Niche – possible for some causes• Local newsletters – the best!• Coupon is best If using any form of response

mechanism

Publicity/PR and others!

• Press releases• Free ads• Local community development: buses,

shops, libraries, community halls • Posters, email signatures, backs of

envelopes, local churches and anywhere else!

Tasks• Next of kin research?• Focus groups?• Information internally to get support?• Objective setting for each target audience

and each method of communication• Getting the right stories told• Setting activity levels as a measure• Hope it works!!!

If you need me

• Richard Radcliffe• richard@radcliffeconsulting.org

• Mobile: 07771896680• Office 01832 710 893• The Manse, Main

Street, Bythorn Cambs UK PE28 0QR