Legacy giving remains one of the most significant yet underutilised sources of income for charities. Despite its growing importance, many organisations still find it challenging to prioritise legacy fundraising or communicate its long-term value to supporters.
According to the Legacy Giving Report 2025 by Legacy Futures, legacy donations were worth £4.5 billion in 2025 – a nine per cent increase on the previous year. For the UK’s top 1,000 charities, legacy gifts now account for around 30 per cent of total fundraising income.
These figures underline a clear opportunity. Charities that actively engage with legacy donors are not only diversifying their income streams but also creating a sustainable foundation for future impact.
A legacy gift allows an individual to leave money, property or investments to a chosen charity through their Will.
For supporters, this provides an opportunity to make a lasting difference to a cause they care about, often alongside supporting family members.
For charities, legacy giving represents a powerful and predictable source of funding. One that can enable strategic growth, long-term projects and investment in infrastructure that may otherwise be difficult to fund through annual appeals or short-term grants.
However, legacy income can only be realised if charities invest time in nurturing relationships, building trust and communicating how such gifts will be used to further their mission.
Legacy giving also offers an attractive incentive for donors. All gifts left to registered charities are exempt from Inheritance Tax (IHT), meaning that every pound given through a Will goes directly to the cause.
Furthermore, if an individual leaves at least 10 per cent of their estate to charity, the rate of IHT applied to the remainder of their estate falls from 40 per cent to 36 per cent.
This can make legacy giving not only an act of generosity but also a practical part of estate planning, helping donors reduce their taxable estate while ensuring their values continue to make a difference long after they are gone.
Charities that can confidently explain these tax benefits and provide guidance or referrals to professional advisers, are often more successful in encouraging supporters to take that next step.
Legacy fundraising should be viewed as a long-term investment, not a short-term campaign. Successful programmes typically share the following features:
Legacy giving is not just a fundraising tool. It is a bridge between a donor’s values and a charity’s future.
We have seen how charities that build a structured, informed approach to legacy giving often experience stronger long-term financial resilience and stability.
Our experienced charity and not for profit team are happy to help organisations and trustees with a wide range of issues.
Please get in touch with Partners Hazra Patel (hazrapatel@lubbockfine.co.uk) or Lee Facey (leefacey@lubbockfine.co.uk) if you want to discuss any of these matters covered above.
