Legacy income among UK charities is expected to increase from £3.2 billion in 2019 to £3.9 billion in 2024, a major study has revealed.
The research, published by charity revenue analyst Legacy Foresight, suggests that the legacy market is set to see average growth of around 3.6 per cent per year for the next five years, up from 3.3 per cent last year.
Legacy income is defined as assets and capital left by individuals in their Wills, which is a primary source of charity funds in the UK.
Commenting on the statistics, the report says the projected uplift in legacy income can be attributed to an upward revision in the Office for National Statistics’ (ONS) death forecast, which expects life expectancy to shrink over the next decade.
Additionally, Brexit uncertainty is unlikely to have any major impact on legacy income. While the report suggests that value per legacy is likely to decrease, an overall increase in the number of legacies will make up for the shortfall.
“While charities have no influence over either of the key drivers of legacy income at the market level, they should act now to put themselves in the best position to take advantage of the expected long-run market growth,” said Legacy Foresight.
“In a highly competitive market, with significant in-built lags between investment and realising income, charities should be looking at their legacy fundraising budgets. Investment now could ensure they get their share of future growth.”
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