The impact of the cost of elderly care on legacy fundraising.

I’m continually alarmed by how fast the cost for private elderly care in the UK keeps rising, and its potential impact on legacy fundraising strategies?

Did you know that if you have savings and investment over £23,250 chances are you’ll need to self-fund your care. For example, a 75-year-old living alone, needing moderate home care, could face costs of around £45,000 a year — that’s £225,000 over five years.

Of course for many, that means tapping into the biggest asset they have - their home. Depending on its value, and how long they live, that could eat up a large slice of their estate.

The impact: shrinking residuary gift values.

Could we see more of a planned giving approach emerge in the UK?

Something like what some US charities do, encouraging donors to commit gifts early, before care costs erode their estates.

I think planned giving is not yet a natural fit for the UK context, but perhaps it could be if approached creatively.

Instead, charities will need to reframe their legacy fundraising strategies to also focus on recruiting supporters who can deliver higher residuary gifts - major donors.

This would mean stronger collaboration between major giving and legacy giving, from prospecting high net worth individuals to developing a joined up stewardship pipeline.

Exciting times ahead.