practical takeaways from JBWere’s philanthropy report on bequests
We are so appreciative of the data collated and reported on by JB Were and in particular John McLeod, who we meet with every now and then to make sure we understand his important research and methodology, so that we can share it with the sector and our clients. Excitingly, JB Were’s philanthropy report was released just recently, giving the sector many new insights into how people have been giving over the last financial year.
Thank you to the team at JB Were for this data and report, we will be delving into it in detail over the coming months and thank you for this intel that we can use to better guide our clients when we help them set up their Gifts in Wills program.
For more information on how we help charities in the Gifts in Wills space see here.
But for now, we wanted to provide you with our quick take on the important information from JB Were’s philanthropy report and then some practical tips on HOW you can use this information to:
- Gain support from Board / leadership to invest in developing your Gifts in Wills program; and
- Improve your ability to attract gifts in wills to maximise impact for your organisation.
an overview of JB Were’s philanthropy report and how charities can use it to improve their gifts in wills / bequests programs
| Finding from report | Practical ramifications / uses of this information for your charity |
| The transition of wealth over the next 20 years presents a once in a generation opportunity to unlock significant pools of capital, which have accumulated in many Australian households, for social impact. This is important, because in this same period of wealth creation, we have also seen increasing disadvantage for many across society. | All charities should have a Gifts in Wills program in place so that you can attract untied funding for your organisation over the next 20 years. Gifts in Wills can help you create more positive social change. NB: the average gift in will in Australia is $60,000 |
| The aim of this report is to provide a deeper understanding of bequests in order to encourage an increase in the flow of capital to the social sector and help address some of the pressing social and environmental needs. | We, as charities, need to do a better job at explaining to our supporters that we are open for business when it comes to Gifts in Wills. We appreciate them, it’s an option if you are cash poor but asset rich, and it’s incredibly helpful – ask any CFO that’s received a surprise gift in will! |
| Australia’s population growth is slowing which will contribute to an acceleration in the number of annual deaths from around 180,000 currently to over 330,000 within 40 years. | Now is the time to invest in establishing or growing your gifts in wills program. If the transfer of wealth is going to happen over the next 20 years then you need to position your charity now to have individuals consider you when they’re preparing their will and doing their estate planning. Even if you know that the gifts in wills market segment provides a slower return on investment (than say, major donors who can give straight away) it’s crucial that you take the time to invest in this program now to be able to reap the rewards – that could provide a return on investment in the next few years! |
| Australia remains near the top globally for average household wealth and while inequality remains a pressing issue, the wealth gap between young and old is large and exacerbated by current cost of living issues. Importantly, the wealth transfer is happening from the older and wealthier cohort. | If you don’t ask, you don’t receive. Work out who within your support base is interested in learning more about your Gifts in Wills program (we do this via a supporter survey) and engage with those supporters. Provide them with the information they need to know now to be able to leave a gift in their will for you. |
| Charitable bequests, whether one off or from a past gift to a charitable trust or foundation, regularly make up 20 of the largest 50 annual philanthropic gifts in Australia. They are mostly unrestricted in their use and have a return on investment around six times the average for all fundraising, making them most valuable source of income by quite a margin. | Boards and CEOs often de-prioritise the establishment of a Gifts in Wills program due to a longer return on investment (between 2-7 years) in this work. But understanding that the return on investment (when gifts are made via wills) is 6 fold of any other fundraising activity can help motivate even the most reluctant leader into seriously considering Gifts in Wills as part of your broader fundraising strategy. We can help you design a fundraising strategy right for your organisation and within that incorporate Gifts in Wills as a key market segment to attract funding from. |
| Australia’s population growth is slowing which will contribute to an acceleration in the number of annual deaths from around 180,000 currently to over 330,000 within 40 years. | Segmentation of your support base can help in understanding how to communicate with them to attract Gifts in Wills. However, we know that asking someone to consider leaving a Gift in Will to your organisation after the age of 70 can mean it’s too late. Research shows that people make a will in key times of their life, such as when they get married, have children, buy a house, divorce, etc. What’s your plan to attract the transfer of wealth and increase in annual deaths over the next 20-40 years? |
For more, download the full report, find out more about how we can help you develop your Gifts in Wills program, or read our top tips for making your Gifts in Wills program great.