A solicitor's perspective on charitable gifts in wills

In the climate of public spending cuts, charities are increasingly expected to fill the gap. Yet charities themselves face huge challenges. Not just increasing demand for their services but falling income and low investment returns. Encouraging philanthropy has never been more important, and that includes legacy giving. Following the announcement last year of the Government's major inheritance tax incentive to encourage us to give more to charity on our death, the time is right for a major report on current trends in charitable legacy giving. Late last year, Mishcon de Reya undertook the most detailed analysis ever by a firm of solicitors of its clients' wills. In a study of over 1000 wills, we did not just look at how many people leave a legacy to charity. We considered the value of the legacy, the type of legacy, the likelihood of the charity ever receiving it, whether clients prefer to give to multiple charities, and the most popular charitable sectors. This article will give a quick overview of our research followed by a more detailed look at the three types of legacy to charity: cash-'for example, I leave 10,000 pound to charity',-specific items-'for example, I leave a painting to charity'-and residuary gifts-'for example, I give half my estate to charity'. The article will then briefly touch on the charity sectors most favoured by our clients before giving a brief summary of Mishcon de Reya's key findings in conclusion. Copyright (C) 2012 John Wiley & Sons, Ltd.