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Lifetime legacies an ‘ideal solution’ says lobby group 2

Fundraising | Celina Ribeiro | 14 Mar 2011

Calls for lifetime legacies to be introduced in the UK have been amplified today, as a consortium of organisations ranging from Oxford University to professional advisers issued a plea for the government to introduce the mechanism as soon as possible.

The Charities Aid Foundation has joined a range of groups including the Charity Tax Group, European Association for Philanthropic Giving, Cancer Research UK, private banks, lawyers and wealth advisers in pushing for the government to commit to amending the Finance Act to allow donors to use lifetime legacies.

The group, which has been in communication with the Treasury and HMRC for a month on the matter, was formed following an event some months ago at which there appeared a massive appetite in the sector for governmental reform.

Hannah Terrey (pictured), head of policy at CAF, told Civil Society that while today’s call has no specific timeframe, “the sooner the better”.

Political leadership needed

She said that, following the end of a Treasury working group which delivered no recommendations late last year, the lobbyists are wary of embarking on another such process. “We wouldn’t want to see a working group of the type we had again,” she said. Instead the group will continue to communicate with Treasury and HMRC to point out the benefits of lifetime legacies to charities and donors.

“We need political leadership to take it forward,” she said, adding that the movement lacked such political support in the past.

Citing the popularity of lifetime legacies (or charitable remainder trust) in the US where there are 115,000 such trusts worth $107bn, the group said the mechanism would be an “ideal solution” to attract donations from asset-rich baby boomers, and could help incentivise donations to the arts and universities. It added that it might also help charities capitalise so that they can participate in government payment-by-results schemes.

Richard Cassell, a partner at Withers LLP and member of the group, said: “We believe this new mechanism for charitable giving would provide a much needed boost to fundraising in the UK.  It has the potential to engage new donors and generate increased levels of giving from existing donors.  
 
“This is one way in which the government can demonstrate its commitment to building a stronger culture of charitable giving. We hope they seize the opportunity.”  

Lifetime legacies enable donors to irrevocably pledge an item of value, such as property or shares, to a charity while still using them within their lifetime. On death, the charity takes possession of the pledged item. Lifetime legacies could be used by charities as financial security, against which they would be able to plan and obtain finance. 

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Directory: Cancer Research UK (CRUK) | Charities Aid Foundation | Charity Tax Group | HM Revenue & Customs (HMRC) | Withers
Who's Who: Hannah Terrey