Lack of legacies hitting charities

Charities are facing a £57m drop in the amount of money they are left in wills each year, according to research which was published this week.
By The Newsroom
Published 4th Jun 2010, 20:41 BST
Updated 4th Jun 2010, 20:41 BST

The sector is facing a "double whammy" of losing legacy income at time when it could also see statutory funding cut, according to the ESRC Centre for Charitable Giving and Philanthropy (CGAP) at Cass Business School and charity consortium Remember A Charity.

The research found that charities had suffered a three per cent drop, the equivalent of 57m, in the value of money left to them in 2008/2009.

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Cuts to charities' statutory funding have yet to be revealed, but a reduction of only one per cent in the money they receive would leave the sector 128m a year worse off.

The report warned that the financial pressure was coming at a time when charities were being asked to increase their involvement in the delivery of public services through the new Government's "Big Society" agenda.

Professor Cathy Pharoah, co-director of CGAP and author of the report, said: "Gifts left to charity in wills are such a crucial source of funding to many charitable activities that it is vital to keep a watching brief on their value in this uncertain economic environment.

"Some charities depend heavily on the income they raise from legacy gifts, while others are increasingly hoping that legacies and private giving will help them weather any forthcoming public spending cuts."

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