The impending legacy squeeze - and why supporter loyalty matters more than ever
- Richard Spencer
- 1 day ago
- 4 min read
I’ve been thinking a lot about income performance recently. Several charities have told me this week that they are behind target, and although each situation is different, the pattern feels familiar... Supporters are still engaged, in a variety of ways - but they are acting more cautiously. It made me wonder how this same behaviour might be showing up in legacy giving – and during Remember A Charity Week, there’s no better time to find out.
Legacy income is often described as stable and resilient, and over the long term that remains true. In the latest Legacy Giving Report, legacy income is forecast to reach £5 billion by 2029 and could grow to £10 billion annually by 2046[1] – an almost unimaginable amount. However, the short-term picture – and the reality for individual charities - is more pressured than that. Probate values have flattened in real terms. Inflation has reduced the purchasing power of legacy gifts – the same amount just doesn’t go as far any more. And here we are, years into a cost-of-living crisis, still dealing with pressures that have led many supporters to delay their financial decisions: and this includes updates to their will. All of these factors create a more challenging short-term outlook for legacy income, even while the long-term trend remains deceptively positive.
"All of these factors create a more challenging short-term outlook for legacy income, even while the long-term trend remains deceptively positive."
I’m calling this the ‘legacy squeeze’ – and it’s coming for the charity sector.
What charities are experiencing in regular giving, right now, is connected to what I predict will happen for legacy giving down the road. When supporters feel financially stretched, they become more cautious: they take longer to give, update their wills less frequently, and may ultimately reduce the proportion they leave to charity. None of this means they care less. It means they feel less able to act.
But this is where supporter relationships become essential. Our research at About Loyalty shows that supporter loyalty is driven by commitment, satisfaction, and trust. These emotional factors influence long-term giving and legacy intention, because – quite simply - they are practical buffers against economic pressure.
One example that illustrates this clearly is Air Ambulance Charity Kent Surrey Sussex (KSS). They have been investing in supporter experience for some time, and we’ve helped them to measure the impact of this investment since 2023. Over the years, they have focused on listening, thanking, and understanding why supporters care (you can read more in our report, The future of fundraising). And this has strengthened those all-important supporter relationships.
As supporter experience has improved at KSS, legacy engagement has also increased. More supporters are asking questions. More supporters are expressing interest. More supporters have confirmed pledges. This is exactly what our research shows: when supporters feel valued and understood, their intention to leave a legacy gift grows stronger.
So, which supporters need the most care right now?
Legacy giving is an expression of identity. People leave gifts in wills because it reflects who they are and what they believe – the better future they want to see for the world. In a period of financial pressure, the supporters who need the most care are defined by their motivations, rather than the size of their donations.
This can show up in a number of different ways. For example, supporters going through significant life transitions often have high commitment, but need reassurance and human contact. Values-driven supporters, meanwhile respond to communications from charities that reflect those values. Supporters with personal experience need transparency and warmth, whilst quiet loyalists need recognition and gratitude (here's an example of what that gratitude looks like at Diabetes UK). And the list goes on.
In a cost-of-living squeeze, people don’t stop caring - they stop feeling able to act. The charities that will maintain, or grow, their legacy income are those that can see their supporters as real people, invest in the emotional connection, build trust through transparency, and nurture values and belonging.
The cost-of-living crisis may create pressure on legacy income - for many, it already is. However, I’m confident that charities who invest in their supporter relationships will emerge stronger and more resilient. The next few years will reward organisations that place supporters, their feelings, their experiences, and their emotional connection at the centre of their fundraising strategy.
Those that do not will feel the ‘squeeze’ more sharply.
If you're reviewing your legacy programme, now is the time to consider how this sits alongside your supporter experience. How do you listen to your supporters, and strengthen their personal connection with your cause? If you're looking for somewhere to get started, then let's chat about how we can help.
