Legacy insights from Legacy Roundtable 4
How COVID-19 is shaping the future of legacy giving, from demographic and economic impacts to in-memory fundraising and adapting engagement strategies.
This article is a companion to Episode 4 of The Legacy Roundtable, summarising key insights from our expert guests. The full episode can be listened to below.
Guests:
Jon Franklin (Economist, Legacy Foresight)
Meg Abdy (Programme Management & Business Development, Legacy Foresight)
Kate Jenkinson (Head of In-Memory Consultancy, Legacy Foresight)
Jenny Kronbergs (Head of Gifts in Wills, UNICEF)
Eight Key Takeaways
1. COVID-19 Will Have a Long-Term Impact on the Legacy Market
“Legacy income will be affected in the short term, but we expect growth over five years.” – Jon Franklin
The pandemic’s impact on legacy income stems from three areas: demographic shifts, economic downturn, and administrative delays. Legacy Foresight predicts 8,000–10,000 additional bequests in the next five years due to higher mortality rates, with a peak in 2020. However, this increase may be offset by economic downturns and delays in estate processing.
2. The Economic Downturn Will Reduce Residual Bequest Values
“House prices could drop by around 10%, causing a 3–7% decline in residual bequests.” – Jon Franklin
Stock market fluctuations and falling house prices will affect the value of estates, impacting legacy income. Legacy Foresight projects a 4–23% decline in legacy income in 2020 due to economic factors, though a recovery is expected by 2024.
3. Administrative Delays Are Affecting Estate Settlements
“The slowdown in property sales could delay legacy income by months, if not years.”
While most organisations have adapted, property market stagnation and the potential collapse of small legal firms could result in longer estate administration times. Delays in the flow of cash to charities could last well into 2021.
4. Legacy Fundraisers Should Manage Internal Expectations
“Plan for a conservative income forecast, but remain flexible in how you adapt.” – Meg Abdy
Given the current uncertainty, charities should adopt a cautious financial strategy, focusing on safe income estimates while planning for potential growth. Regularly revisiting forecasts and communicating changes internally is essential.
5. In-Memory Fundraising Has Evolved Rapidly
“Online tribute donations have surged, while funeral donations have dropped.” – Kate Jenkinson
Due to restricted funerals and social distancing, traditional funeral collections have declined, but online giving has increased. Charities have reported a 500% rise in tribute donations and greater use of digital fundraising platforms.
6. Stewardship Strategies Are Shifting Towards Digital Engagement
“More charities are engaging supporters via phone and email instead of post.”
The pandemic has forced a shift in stewardship methods, with charities increasing their use of digital communications and storytelling. Tribute pages and virtual memorials have gained popularity, offering new engagement opportunities.
7. Virtual Legacy Events Can Broaden Engagement
“Our virtual approach has allowed us to reach supporters who couldn’t attend physical events.” – Jenny Kronbergs
With in-person legacy events cancelled, charities are experimenting with virtual gatherings. Unicef is considering online tea parties, live Q&As, and digital storytelling to maintain supporter engagement.
8. Charities Must Demonstrate Their Unique Value Amidst Growing Community Support
“Charities need to prove why they should receive legacy gifts over local community groups.” – Meg Abdy
The rise of informal community-led initiatives has changed how people give. Charities must clearly communicate their long-term impact, demonstrating their expertise, sustainability, and ability to deliver meaningful change.