Reading the CASE Insights report 2022-23 (alongside the headline story of the generosity of nearly 170,000 donors who together gave £1.37bn to higher education in the UK and Ireland), there is a hidden story of a missed opportunity in legacy fundraising within the sector.
Legacy income appears to be pretty static in terms of its philanthropic impact for higher education institutions in the UK and Ireland. The most established fundraising teams secured just 8.4% (on average £2.7m) of their philanthropic income from legacies in 2022-23.
Overall, 10% of funds received came from legacies. This is static from 2021-22, up just 1% from 2020-21 and down 3% on 2019-20.
Compare this picture to that of the charity sector, where 15% of total charitable income in the UK comes from legacies, with some large charities securing over a third of their income from legacies. Some individual charities secure more in income from legacies than the total legacy income raised by UK and Irish universities!
In addition, the charity sector has seen legacy income grow by 6.5% in 2022/23. 6% of people now leave a gift to charity in their will, and it’s estimated that 40% want to do so but haven’t done so yet. Of those who give to charity, 20% leave a gift in their will, but only 50% inform the charity that they have done so. By 2030, it’s estimated that charities will receive £5bn per year in legacy income from 146,000 charitable bequests.
In a climate of growing legacy income to charities, universities in the UK and Ireland have a static proportion of their income from legacies.
This suggests that higher education fundraising teams are underperforming in terms of their potential fundraising income from legacies. Given the high percentage of contactable alumni reported in the CASE Insights report, the audience is there for systematic legacy programmes. There are some notable examples of great practice in the sector where institutions have invested in legacy fundraising.
The question is whether the will (excuse the pun) is there to invest in this area, versus the more immediate return on investment from major gifts fundraising.
Halpin’s fundraising and alumni relations services can support you in all areas of your philanthropic activity, including legacies. Get in touch to find out more.