The final outcome of charitable bequest gift intentions: Findings and implications for legacy fundraising

Charitable bequest gifts are important to charities but evaluating legacy fundraising activities is problematic. These activities may not generate bequest income until many years later. Thus, many charities focus on generating reports of current plans or intentions for bequest gifts. Such approaches depend on the link between these reports and ultimate bequest transfers. However, this link is not well documented. This study presents the first multi-organisational results linking ultimate estate distributions with lifetime legacy giving plans or intentions reported to charities. Ten Australian charities provided data from those dying in 2014–2017. Among 700 decedents who had confirmed the presence of a planned bequest gift to the charity, 35% generated no estate gift. This lost gift rate varied from 17 to 60% across different organisations. The average loss rate was 24% when the charity had at least one communication with the decedent within 2 years of death, and 48% otherwise. Among 264 people reporting to the charity that they were “intending” or “considering” an estate gift but not confirming it, 89% left no gift at death. Among 507 people only requesting information about making a bequest gift, 95% left no gift at death. These results suggest the importance of moving donors to the point of planned gift confirmation and then maintaining relationships until the end of life. However, marketing remains challenging given that 58% of the 2,682 total bequest gifts received by these organisations came from decedents who were not donors during life.     

The timing of final charitable bequest decisions

• Understanding the timing of final charitable bequest decisions permits nonprofits to co‐ordinate their marketing efforts to correspond with donor decision‐making. Using probate data from Australia and longitudinal survey data from the USA, this paper seeks to identify the timing of decisions that resulted in realized charitable bequests. We find evidence that charitable transfers result mostly from decisions that occur during the last 5 years of life and at the oldest ages. Charitable plans made earlier in life are often discarded.

Copyright © 2015 John Wiley & Sons, Ltd.     

The economics of consumers' gifts and legacies to charitable organisations

Charity organisations in The Netherlands receive over 50 per cent of their total income from private fundraising; only a small part of this, 20 per cent, originates from legacies. The paper introduces some economic models of consumer behaviour in the neo‐classical tradition that harmonise with altruistic behaviour. Some models for analysing donations and bequests to charitable organisations are introduced and the hypotheses that follow from these theories are compared with Dutch data from 500 respondents. Most respondents had donated something to a charity during the last six months, but only a few had even thought about naming a charity in their will. Restrictions are felt by individuals due to their limited resources. More important, however, seem to be the restrictions on behaviour due to having children, or other close relatives; individuals feel obliged to leave everything to their children or other close relatives. Although the respondents have a reasonably positive opinion about the work and trustworthiness of the charity organisations, charities are not yet considered as ‘a close friend’. Around 40 per cent of respondents are not particularly happy with the information they receive from charity organisations. Communication about legacy donating is considered acceptable by most respondents, as long as the approach is not too personal. Copyright © 2000 Henry Stewart Publications.     

Perceived value of charitable involvement: The millennial donor perspective

The importance of nonprofit relationship marketing continues to increase as organizations compete to attract and retain a younger loyal donor base. The purpose of this study is to examine the impact of six determinants of charitable giving on millennial donor's perceived value received from their involvement with the charitable organization. A conceptual model and accompanying research hypotheses are tested on a sample of millennials from the U.S_(n = 227). Structural equation modeling is used to test the relationships in the model. Results suggest that five factors have a positive effect on donor's perceived value. Social recognition is found to be the most important factor, followed by attitude towards and trust in the charitable organization and attitude towards helping others. To a lesser degree, tax benefits and mitigation of guilt are also found to have an impact on donor's perceived value from charitable involvement. Although this study is limited to the examination of millennials, practical and social implications are noted for all donors. Organizations must recognize that donors are influenced by a combination of extrinsic and intrinsic factors when evaluating their value from charitable involvement. Most of all, donors seek a degree of social recognition from giving, so organizations are encouraged to provide ways for millennial donors to display or share their charitable involvement.     

Marketing charitable bequests to lawyers

There is scant literature about the role of the lawyer in influencing the likelihood of a charitable bequest being made in a will. Charities regularly advertise in legal journals and supply bequest materials to lawyers, but the effectiveness of these strategies for influencing lawyers appears not to have been measured in the literature or in practice. Our exploratory research indicates that specialist estate lawyers report that they pay little or no attention to traditional marketing of charitable bequests to them and that lawyers' specific information needs from charities about bequests are not being satisfied appropriately. Our study reveals that lawyers do seek information from charities in order to write a will's bequest clause, once a bequest has been considered by the client. Lawyers indicated frustration with obtaining this information from charities, and we recommend some actions for charities to rectify this situation. Recommendations for enhanced bequest solicitation are made together with suggestions for pathways for future bequest research involving lawyers. Copyright © 2011 John Wiley & Sons, Ltd.     

The antecedents and consequences of charitable donation heterogeneity on social media

This study claims that donating is a rational behavior that balances altruism and self‐interest; therefore, the frequency and magnitude of donating are picked as crucial criteria to classify different crowdfunders because both of them reflect the rationality of donating. This study identifies 6 clusters of crowdfunders and explores the antecedent variables of the typology based on self‐system theory, as well as reveals the social influence of different types of crowdfunders. Data of the crowdfunders (n = 13,868) were collected from “Micro Philanthropy,” a popular SNS crowdfunding platform for charity in China. Social Network Service (SNS) profile information such as network features, social interaction features, and the identity of users was found to be significantly related to the typology. Active donors and bounteous donors are more influential than other donors in absorbing the attention of SNS users and attracting new donors.     

Gender differences in charitable giving

This paper examines the mechanisms for giving by investigating the psychological and values differences between men and women's motivations for giving. We explored two of the eight mechanisms for giving developed by Bekkers and Wiepking as a framework for why people give—principle of care and empathic concern. Are there differences in these motives for giving by gender, and can these differences in values and the psychological benefits that people receive when making donations explain gender differences in charitable giving? Are women more likely to give and give more than men because of their higher levels of empathic concern and principle of care? We used two US national data sets to test our hypotheses. Our results for both data sets indicate significant differences in motives by gender, as well as differences in the probability of giving and amount given by gender, even after controlling for empathic concern and principle of care measures. Our findings are discussed in terms of the importance of viewing charitable giving through a gender lens as well as practical implications for practitioners. Copyright © 2011 John Wiley & Sons, Ltd.     

用礼品定位，用活动营销

经营企业和企业家知名度的大小没有关系,企业做得有没有特色、有没有创新、有没有值得别人学习的东西这才是最最关键的。     

The final gift: targeting the potential charity legator

• Although legacy income is of enormous importance to many of the UK's fundraising charities, little reliable information exists to assist practitioners in targeting potential legators with appropriate messages. In particular, the motives for making a legacy gift and the differences between those doing so and the general supporter base are unknown. This makes segmentation and the subsequent development of strategy problematic.
• This exploratory study seeks to address these issues and compare the motives of individuals who support charities during their lifetime with the motives of individuals who, in addition, pledge a legacy. The authors conclude that fundraisers looking to increase legacy income should target their older supporters, particularly those in their mid to late 60s', as well as users of their services. The findings also suggest that communications to these groups should stress organizational performance and service quality commitments.

Copyright © 2005 John Wiley & Sons, Ltd.     

The giving standard: conditional cooperation in the case of charitable giving

• In this study, we make a first attempt to investigate the mechanisms of conditional cooperation in giving outside experiments, using retrospective survey data on charitable giving (the Giving the Netherlands Panel Study 2005 (GINPS05, 2005 ; N = 1474)). Our results show that in the case of door‐to‐door donations, social information affects perceived social norms for giving and, through this perception, influences the level of actual donations. The effect of social information on actual door‐to‐door donations is fully mediated by perceived social norms for giving. Furthermore, we found empirical support for the giving standard hypothesis. People in different income categories donate roughly the same amounts in separate instances (they use the same social information), and as a result people in lower income households donate a higher percentage of their income to charitable organizations.

Copyright © 2010 John Wiley & Sons, Ltd.     

The development of purpose and strategy within British charitable organisations: historical impressions

This paper is based on research work undertaken as part of a PhD thesis. It considers the development of purpose and strategy within British charitable organisations. First, the historical path of charity in Britain is traced. Secondly, an assessment of the more fundamental forces that constitute the nature of charitable initiative are explored, much of which is applicable beyond ‘our island home’.[Churchill, W. (1957) ‘A History of the English Speaking Peoples’, Cassell and Company, London.] The historical relationship of charity to business is then examined, particularly in terms of the influence that business ‘culture’ is gaining in shaping charitable endeavour today. Finally, an initiative to link business and charity is presented and conclusions are noted. Copyright © 1999 Henry Stewart Publications     

Accuracy of self-reports on donations to charitable organizations

In this paper we assess overall accuracy in survey self-reports on giving to charitable organizations, direction of bias in self-reports, and the influence of this bias on relationships. We compare donations to one specific health charity reported in the Giving in the Netherlands Panel Study 2003 with donations recorded in the database (n =  191). We find that (a) reported donations are significantly higher than recorded donations; (b) reported amounts contributed are correlated very strongly with recorded contributions; (c) differences between amounts reported and amounts recorded are positively related to education, religious affiliation, and the tendency to social desirability, and negatively to household income. This suggests that effects of education are overestimated and effects of income and religious affiliation are underestimated using self-reports on donations rather than archival records.     

Direct marketing managers in UK charitable organisations

Although the charity sector is one of the United Kingdom's biggest users of direct marketing, little is known about the characteristics of the people who manage direct marketing within charities. This paper presents the results of a survey of 115 direct marketing managers in the UK's largest fundraising charitable organisations; focusing on their experience, motivation, training and educational backgrounds. The degrees to which respondents' employing organisations placed a high value on the marketing function and the extents to which various categories of direct marketing manager possessed wide-ranging general managerial competencies were also examined. There was little evidence of the ‘hybridisation’ of direct marketing specialists. Rather, individuals exhibiting hybrid manager attributes were sometimes put in charge of direct marketing.     

Segmenting the Belgian charitable sector: The impact of environmental factors on households' generosity

Research on charitable giving has known a renewed interest over the last years. Despite a recent evolution, the literature remains predominantly Anglo‐Saxon, and studies are consequently conducted in societies marked by a strong charitable giving culture. In that respect, donors are generally considered as isolated individuals, and the impact of social and environmental factors such as public policies, institutional specificities, and punctual events is often underestimated. Moreover, research on generosity often suffers from the absence of reliable data, free of desirability bias. Based on fiscal data of tax returns and gift tax returns provided by the official Belgian statistics bureau, this research investigates individual donating behaviors while considering the influence of environmental determinants on generosity. More specifically, we empirically assess the generosity of Belgian households over a period of 8 years marked by natural disasters, massive calls for public generosity, and changes in tax policies. Among other things, we qualify the results of previous research on the role of age and open the debate on the role of household composition as a variable for segmenting donors. Finally, we propose leads for future research in order to stimulate further academic effort on the topic.     

The Associate Life Legacy Program: the ultimate gift from employees

St. Vincent Hospital Foundation introduced a program whereby employees can leave a legacy without cost to them. To date the program has generated nearly $26 million in pledges.     

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 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 © 2012 John Wiley & Sons, Ltd.     

Growth effects of annuities and government transfers in perpetual youth models

We show that in overlapping generations endogenous growth models with uncertain lifetime, the introduction of government transfers always increases economic growth by crowding out the private annuity market and increasing accidental bequests. In particular, if the government imposes a flat-rate consumption tax (which is neutral to the consumption–saving margin), uses part of the tax revenue for unproductive purposes, and rebates the rest equally across agents as a lump-sum transfer, the economy grows faster and improves the welfare of future generations.     

Charitable life insurance--the ideal deferred gift

As financial pressures on non-profits rise, fund raisers are constantly searching for alternative income sources. Life insurance may be one of them.