Legacies – or gifts left in wills – are of immense value to UK charities, worth more than £2.5bn in 2015 alone. This figure has increased steadily over the past few years and without it many charities will struggle to continue their work. But damaging recent fundraising scandals mean this vital source of income may be under threat.
The problem is one of trust. Will people still be willing to donate if they don’t feel they can trust charities to fundraise responsibly? The whole sector has a role to play in improving public confidence, but charity professionals working with legacies are responsible for the sensitive and professional administration of donors’ final gifts – a delicate role that is absolutely dependent on integrity.
That is why we at the Institute of Legacy Management, the membership body for legacy professionals, are launching new good practice guidance this week, setting out five core principles to help share best practice and rebuild public trust in our decision-making.
1. Be sensitive
Legacy professionals come into contact with a donor’s family and friends at a very difficult time, so we must always treat them with compassion. This means being thoughtful about when to get in touch with executors, often family or friends who will not welcome being contacted on the anniversary of the donor’s death or another emotionally meaningful date, for example. Being considered and respectful in all communication sounds obvious, but it is so important, and requires careful thought and planning.
2. Be open
Legacy professionals need to be open about the work they do, making sure all parties, including executors, solicitors, families and friends clearly understand how the process of claiming a legacy works.
This means keeping everyone updated, and avoiding jargon and difficult technical language. Even after a charity has received the gift, it may be appropriate to maintain contact with the executor to tell them about the impact of the gift, or be clear if it has not been possible to use the gift as intended.
3. Be ethical
Ethical decision-making is at the heart of legacy management and integrity is vital, even in routine administrative tasks. Each decision can impact on an organisation’s wider reputation.
Challenging situations can arise, for example, if an executor refuses to engage with the charity. Once a notification has been received, the charity has a legal entitlement to that gift and the executor has a legal duty to ensure that the gift is made in accordance with the wishes of the donor. But after a set period of time some charities may decide it is not in their best interests to pursue the legacy, particularly if the cost in money, time and reputation outweighs the benefit.
4. Collaborate
Legacy teams have a very clear focus, but must establish and maintain regular dialogue with other teams in fundraising, marketing and finance. This works both ways of course. As well as keeping colleagues informed, legacy professionals must work to understand other teams’ priorities and how they can contribute to legacy management. By developing good processes for managing and reporting income, these tasks are made easier and more efficient for everyone.
5. Stay up-to-date
As legacy professionals work within legal and regulatory frameworks which are regularly updated, it’s important to stay informed, whether through formal training or networking with other organisations. Our guidance touches on the different types of tax that may be liable and their implications, and highlights key resources for further information.
Chris Millward is chief executive officer at the Institute of Legacy Management.
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