With the United Arab Emirates (UAE) announcing it will quit the Opec and Opec+ groups of major oil-producing nations next month after nearly 60 years of membership, it’s clear to see alliances are shifting and business rules are changing on the global stage. Whilst we at Underwood Consulting (UC) don’t claim to be economists, it seems clear that, amidst recent turmoil in the gulf region, the UAE has spotted an opportunity and is pressing ahead. Perhaps then, Third Sector Magazine’s recent publication of its Legacy Map Report could provide a unique opportunity for charities to do the same.
The report shares the findings from its five-year review of legacy giving amongst 100 leading charities, revealing a major food distribution charity increased its legacy income by over 5000 percent in five years. Alongside this, a fifth of the charities studied reported an increase of over 100% in the same period.
Comparisons With Other Fundraising Income Streams
This is synonymous with the Chartered Institute of Fundraising and AAW Group’s 2024 Charity Benchmarking Report, which showed a return on investment (ROI) for legacy giving of 125.45 across charities. (Reduced to 49.1 for charities with an annual income under £10m).
The same report showed that all other income streams paled into insignificance in comparison, with the nearest ROIs being achieved in the closely related In Memoriam Giving income stream (37.49) followed by grants (23.12).
Considerations For Smaller Charities
Whilst in previous decades legacy giving was the prerogative of large national charities with budgets for high-profile TV/radio advertising campaigns, recent years have seen a plethora of smaller charities exploring this income stream. Indeed, whilst the report above shows that the ROI is reduced for charities with an annual income below £10m, 49.1 is still significantly above the ROI for all other income streams.
The increased availability of low-cost marketing and communication channels in recent years goes some way towards explaining this, as experts agree consistent marketing is key for legacy giving.
Of course, where there is opportunity there is also risk, and sector experts caution that there are several factors to be considered before making an investment, including;
· The likelihood of legacy income plateauing in the coming years
· The unpredictable nature of legacy giving
· Difficulties associated with income forecasting
Taking a longer-term view
It is therefore suggested that legacy giving be viewed as a long-term investment for charities big and small.
So, if you’re looking to secure the long-term future of your charity, perhaps now is the time to seize the opportunity and press ahead by calling us to discuss developing a legacy strategy.