Friday 25 September 2009

Innovation with Discretionary Legacies

Recent discussion on the Yahoo Legacy Marketing Group has raised some interesting thoughts about how best to approach discretionary legacy opportunities (this is where notice is received, usually via the Smee and Ford "pink forms" service, that money has been left in a will for the executors to distribute to charity, sometimes in named areas of work, such as medial research, homelessness etc).

While it is true that most approaches are ignored, occasionally a well crafted response can lead to a good result (I've certainly seen this with some clients of ours). However, there are several challenges to be considered here.

Firstly, executors receive a lot of charity appeals, so there is the issue of competition. There is little you can do about this, apart perhaps from only responding to opportunities which fit closely to what your charity does. If everyone did this, volumes would be reduced and serious approaches would have a better chance. So maybe it's time to ignore the long shots, for the benefit of all?

Secondly, executors are often grieving relatives, who do not always appreciate being targeted in this way. While some are solicitors or other advisors (where a professional to professional approach can be taken), for family executors a highly sensitive approach is required, which recognises their situation and makes a very gentle, even apologetic approach. This can be achieved, as far as possible, in a covering letter.

Thirdly, there is the issue of what to send - which information and how much of it? Traditionally, most charities have sent an annual report and short covering letter, with a very general ask. However, the risk here is that your appeal ends up looking very much like everyone else's. So what to do?

The approach I am testing now is to effectively treat discretionary appeals the same way as trusts. In other words, to send not only tailored letters (i.e. for family or professional executors), but also to provide a costed project for consideration. This way, the donor can see exactly how the legacy would be used, rather than being asked for a general gift. OK, this may reduce your chances of general funds - but let's face it, discretionaries are someting of a long shot anyway, so if it increases your chances of success, why not give it a go?