New Research Reveals Prevalence of Charitable Legacies Among the UK's Wealthiest

New research reveals the prevalence of charitable legacies amongst high net worth individuals (HNWIs), highlighting the opportunity for further growth.

The study, commissioned by Remember A Charity and conducted by independent research firm Savanta*, surveyed 500 people with over £1 million in investable assets. It reveals that half (50%) of millionaires have already included a charitable gift in their Will, rising to 75% for those with estates of £5 million+.

Noting that legacy giving amongst high net worth individuals may extend beyond a simple donation in a Will, the research finds that nearly one third of the group (32%) have established a charitable Will Trust, and three in ten (28%) used a Donor Advised Fund (DAF).

Amongst those millionaires who have not included a charitable legacy in their estate plans, the large majority (58%) say they are open to doing so and just over 1 in 4 (26%) said that they simply hadn’t thought about it before. This highlights the opportunity to engage this audience at the Will-planning stage.

Percentage gifts

Although only around one quarter of millionaires (26%) say they have prepared to leave a percentage of their estate to charity, rather than  a fixed sum, many more (40%) say they would be willing to donate a share of their estate. With market studies showing that around 90% of legacy income comes from residuary gifts and that high value estates are driving up legacy values, this demonstrates the importance and potential impact of increasing percentage gifts in this market.

Family dynamics and intestacy

In contrast to mass market trends, where child-free individuals are twice as likely as those with children to leave a charitable gift*, this study finds that – for high net worth individuals – gifts in Wills are more prevalent for those who do have children (50%) than for those who don’t (42%). This indicates that, at this level of wealth, individuals may well recognise they are able to both secure their family's future and provide support for charitable causes. This may also reflect the fact that intestacy tends to be higher amongst those without dependents, with 1 in 5 saying they don’t have a Will and have no plans to write one.

The research showed a surprising lack of up-to-date Wills amongst a demographic that is likely to leave considerable wealth to the next generation. Only 3 in 10 (31%) of millionaires have an up-to-date Will, and over one third (35%) of those aged 55-65 don’t have a Will at all. One quarter of the millionaires in this study say they are in the process of writing or updating their Will, reinforcing the opportunity to integrate charitable giving into estate planning.

There are generous tax incentives in the UK for those who leave a charitable gift from their estate. Donations are tax-free and if 10% or more of the net value of the estate is donated this can reduce the Inheritance Tax rate from 40% to 36%.

"Charitable legacies are hugely valued across the sector, no matter the size of the gift or estate. But these insights into the high value legacy market reveal that legacy giving is even more prevalent in this space than many of us will have anticipated," says Lucinda Frostick, Director of Remember A Charity.

“While this is certainly encouraging for charities, many of which are becoming increasingly reliant on donations from those with wealth, this also helps to reinforce to professional advisers just how relevant philanthropy is to their client base – and how crucial it is that they can support their clients in achieving their charitable legacy.” 

"However, the study also demonstrates that there are considerable differences in this market, where family is less likely to be seen as a barrier to leaving a charitable gift. By understanding these nuances, sharing inspirational stories from legacy pledgers and equipping professional advisers with the information they need to support their client base, we can work together to support and empower more people with wealth to fulfil their philanthropic goals." 

* Remember A Charity / OKO Stages of Change Benchmark Study, 2024