With the current trend for some similar charities to merge together, comes a warning from the Charity Commission and lawyers that there may be problems with future legacies, if the gift is made in the former name of one of the charities.
A Will is just what it says on the box, it is the will of the person who wrote it, for their Executors to fulfil after they have died. As such, a Will has to be very specific about what it wants to happen, who it wants to benefit and for how much, etc.
When a person drafts their Will, their solicitor will ask which charities they want to include in it. The solicitor then has to note down the correct name and registration number of those charities. If a charity changes its name, which a lot do these days in re-branding, it’s not normally a problem, as they continue to keep their charity registration number and it is very easy to show they are the same charity, just with a new name.
The problem with mergers is that they become a new charity, with a new name and a new registration number. The Law is required to abide to the wishes of the deceased’s Will and if it names the old charity, then legally the gift should become null and void, as if the charity had ceased to exist (which it has in one sense). This is particularly the case where a Will might name another charity to benefit if the first one ceases to exist.
Despite a mergers register created by the 2006 Charities Act, some lawyers believe the law is not strong enough to override such clauses in Wills and needs to be changed to make an allowance for this.
In the meantime, merging charities are being advised to retain a shell of their former charity, in order to comply with the existing law concerning legacies in Wills, so that they can still benefit from the generous gifts of those who leave them.
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If you want to know why I am so fascinated by legacies and legacy fundraising, I guess it’s because of the unknown and surprise elements they hold.
For example, just last week there was an amazing story that hit the national BBC News headlines. It concerned a lady, Margaret Allan, who lived in a small Welsh village called Solva. She moved there with her husband Harry 30 years ago. They threw themselves into village life and were quickly accepted and welcomed.
When Harry sadly died in 1990, Margaret found she was upheld and cared for by the rest of the village, which she greatly appreciated. They helped her through. She went on living in Solva and was very much part of the community, even after she became housebound.
Margaret died recently, aged 90. She left a considerable Estate valued at around £400,000. In her Will she left several thousand pounds to local charities, such as a local Badger conservation group; Pembrokeshire Conservation Association; local churches and the Solva Luncheon Club (who receives £5,000 to pay for drinks at their Christmas party (that’ll be a gig and a half! ;0).
However, Margaret did something even more remarkable in her Will, she left something for everyone over the age of 60 who has lived in Solva for 20+ years. This is roughly 120 people who will each receive something in the region of £500! It was her way of saying thank you for all the love and care she received over the years she lived in that community.
Gifts in Wills are not just legal activities, they are the wishes of the deceased person, often reflecting the things they held dearly to in life, that can go on being effective after the person passes on. What a great way to be remembered.
Good on you Margaret!
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You can bid to get a cheap day ticket for the IoF’s Annual Convention on Ebay if you go to: IoF at Ebay You’d better hurry though, as the bidding ends at 23:50 this evening (Thurs 28 May)!
Also, learn The Six Secrets of Being a Successful Fundraiser - theses are sessions from last year’s 2008 convention - which are being published weekly on the IoF’s website at: Six Secrets
There are also weekly competitions to win Convention-related prizes at: IoF Competition
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This short video is both exciting and scary. It shows how rapidly technological change is taking place and is a timely reminder to charities that if they want to remain successful in their fundraising, marketing and communications, they need to make technology a priority!
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