Implementing a Legacy Policy
Notes For Parochial Church Councils (PCCs)
Why have a legacy policy?
- A sound policy is part of the Christian Stewardship philosophy of giving back a token part of available wealth and possessions in thanks to God.
- Many of the major charities have successful legacy policies and the church can benefit from legacies too.
- Next to donations, legacies have become a popular way of raising charitable funds.
- A legacy is exempt from inheritance tax.
As with all money matters connected with the church, this is a very sensitive area. Any action in this field needs to be planned and carried out with great care and consideration for your potential donor.
Legacy policy should ideally be part of the parish's total stewardship and pastoral programme, not something that is given special prominence on its own. It is likely that someone considering making their will in the Church's favour already has strong connections with their local church, and may be a regular giver under a stewardship programme anyway.
There are four main types of gift which can be made in a will:
- Pecuniary legacy - a gift of a specific amount of money
- Residuary legacy - a gift of part of the estate after all costs and other gifts have been paid
- Reversionary legacy - a gift left to someone with instructions that it is to pass to another person on the death of the first person
- Specific legacy/bequest -a gift of a particular item, such as a painting, jewellery, portfolio of shares or the whole of your estate
Planning:
- Discuss policy in depth within the PCC, get all the issues properly identified, and determine how legacy policy should fit into existing stewardship or pastoral programmes. If you have a stewardship steering group this may be the best place to formulate policy recommendations. The Stewardship Officer or Parish Giving Officer may be the person to co-ordinate activities.
- When the policy is firmed up and agreed by the PCC, announce this publicly. Like many other aspects of stewardship, the more people get talking about it, the better. When money is left to the church the (late) donor should be thanked publicly. This may be done, for instance, in the parish magazine. People talk about money issues much more openly nowadays.
- Consider how best to contact those you consider to be potential donors. This may mean making visits, rather than writing letters or leaving leaflets at the back of the church. It is best if this is done as part of a routine pastoral visit, and while the parish priest may be the natural 'first point of contact', the responsibility should not be left solely to them.
- Those who are to approach parishioners on this subject should be able to do so with supreme sensitivity, without pressure, and without generating guilt. Training will be required. Bear in mind that it may take a long time for someone to decide to make a legacy.
- If your PCC has already decided to carry out an annual Stewardship renewal programme, this may well be the best way of drawing attention to your legacy policy.
- Bear in mind particularly:
- that this is a part of stewardship and the donor is giving something back to God in thanks.
- that the beneficiaries could be, for instance, future generations of children, or those who most appreciate the tradition of the church.
- that the church has enjoyed the benefits of recent legacies.
- that there are moments when it would be quite wrong to contact a donor, for instance, very soon after a bereavement.
- that it is not only the elderly who make wills. For example, the birth of a child to young parents may lead to this decision.
- that you should not make assumptions as to who will give and who won't.
- that the donor should on no account be pressurised into publicising the fact that he or she is leaving money to the church.
- Plan objectives in detail, such as:
- who should be contacted?
- who will do the visiting?
- what literature needs to be printed?
- the national leaflet is a very good introductory brochure.
- an introductory letter, if this is required, but this is not a substitute for a visit.
- Supporting literature is precisely that:
- bear in mind this should be accessible to all people.
- literature should be brief without being patronising, but neither apologetic nor pushy; and convey the right message to the people for whom it is intended.
- Compile a list of local solicitors, but do not offer to write a will for anyone, or even to recommend a solicitor. In any event the donor may already be in touch with one. Ask one or two solicitors to check your policy and your paperwork, at the planning stage.
Putting it into practice:
- Make a public statement to the congregation, and get people talking about it.
- If a person is undecided, the best option is a residuary legacy, and being as unrestrictive as possible.
- Be aware of the possibility that a will may be contested. This is one reason for avoiding pressure.
- If you get a request for a plaque in the church to remember a particular donor, make certain that the Diocesan Advisory Committee is contacted before making any commitment to ensure this is allowed.
- Don't forget to thank someone who has given you time during a visit.
Christian Giving Links