Legacy income could decrease by up to 9% this year because of the coronavirus crisis, according to Legacy Foresight.
The legacy consortium has revised its five-year forecast to account for the pandemic and accompanying restrictions, and says it expects legacy income to fall between 3% and 9% in 2020. Worsening of the overall economic outlook is expected to impact share and house prices and drive down the value of legacy gifts.
The lockdown also comes with a series of administrative challenges, both for the services charities rely on to process legacy gifts and for the property market. In the long term, Legacy Foresight still expects the legacy market to grow from today’s £3.2bn to between £3.7bn and £3.8bn in 2024. This is between 1.6% and 4.5% less than previously projected. See more here.
Legacy income is set to increase by 3.6 per cent per annum over the next five years.
According to revised forecasts by Legacy Foresight, legacy income will rise from £3.2 billion in 2019 to £3.9 billion in 2024.
During the summer of 2019, Legacy Foresight had predicted that legacy income would rise by around 3.3 per cent per year. However, following higher Office for National Statistics (ONS) predictions on the number of UK deaths.
The ONS believe deaths will rise from 600,000 per year in the present to 645,000 in 2024. This should lead to an inevitable rise in legacy gifts from 120,000 per year to 130,000 by 2024.
The additional increases are dependent on the continued economic recovery. Based on the current trajectory created by a clear Brexit outcome, UK GDP is set to rise by 1.7% from next year with house prices increasing by 3.6% per year – a considerable improvement on the subdued 0.4% growth in 2019.
“For now, legacy market growth will not return to the levels seen in the run-up to Brexit when incomes were growing at 4.1% per year. However, at a time when many charities are reporting flat or falling donations, these forecasts are welcome news for fundraising teams across the UK.”
Legacy giving will be worth £500m more than previously forecasted over the five years between 2019 and 2024, Legacy Foresight has said.
The legacy consortium has adjusted its predictions to account for the higher number of deaths forecasted by the Office of National Statistics (ONS) and for post-Brexit economic conditions. Last year, Legacy Foresight projected legacy income to grow by 3.3 per cent year on year between 2019 and 2024. It now forecasts a 3.6 per cent yearly growth that will increase the value of legacy giving from £3.2bn a year in 2019 to £3.9bn in 2024. Legacy Foresight says this means that “cumulatively, based on these new forecasts, UK charities will receive £500m more over the five years than previously thought”.
See more here.
Legacy Foresight has updated its five-year market forecast to predict that legacy income for charities will rise from £3.2bn in 2019 to £3.9bn in 2024.
Charities are set to receive £500m more in legacy income over the next five years than was previously estimated.
Legacy Foresight, which provides insights into the UK legacy market, updated its five-year market forecast yesterday to include the latest economic data and revised death predictions, which are the two main drivers of legacy income.
The company now predicts that total UK legacy income will increase from £3.2bn in 2019 to £3.9bn in 2024, representing annual growth of about 3.6 per cent. This will generate £18.1bn in total over the five-year period.
Article in full here.
The important link between in-memory and legacy giving has been highlighted in new research with in-memory connections three times more likely to pledge a legacy to the charity than regular donors giving via a direct debit.
Furthermore, legacy donations made in-memory of a loved one were twice as likely to result in legacy prospects.
A survey of over 4,000 adults, by Legacy Foresight, has revealed around 40% of respondents leave at least one in-memory gift in their Will.
The majority of in-memory legacies were left on behalf of and to show their respects for partners, parents and in-laws.
There is a strong connection between in-memory donations and legacy giving, a report from legacy consortium Legacy Foresight has found.
Legacy Foresight put together data from 22 charities which take part in its In Memory Insight research initiative. In-memory giving is where people donate to a charity in the name of someone who has died, whereas legacy giving is when people leave an amount to charity in their wills.
The consortium found that people who have previously given in-memory are three times more likely to include to the same charity in their wills, compared to regular donors who give via direct debit or standing order. In-memory donors also tend to pledge higher amounts – on average, their residual legacy donations are two-third higher than those left by other donors. Legacy Insight surveyed 4,000 adults on in-memory and legacy giving.
Three in five respondents who have included an in-memory donation in their will had previously given in-memory to the same charity, usually at or after a funeral. The survey also looked at the role that in-memory legacies play in the overall landscape of legacy giving. It found that two in five legacy donors had at least one in-memory gift in their will. See more.
A Legacy Foresight study says donations given in memory of loved ones are a good indicator that someone will leave a legacy gift.
People who have previously given donations in memory of loved ones are three times more likely than regular donors to leave legacies to the same charities in their own wills, new research shows.
The legacy consortium Legacy Foresight studied benchmarking data from 22 of its member charities and found that in-memory gifts were a good predictor of whether someone would leave a legacy gift.
A supporter with known in-memory connections was found to be three times more likely to pledge a legacy to the charity than a standard regular donor giving via direct debit.
The research found that the average value of a residual legacy for a known in-memory supporter was two-thirds higher than for a supporter with no known in-memory connection, and pecuniary legacies were twice the average left by those who had no in-memory connection.
A survey of 4,000 adults that was also carried out as part of the research found that two out of five legacy donors had included at least one gift in their own wills in memory of someone else and, of those who did, three out of five had previously given in-memory gifts to charities.
Article in full, here.