Legacy Giving: A Strategic Marketing Opportunity for Financial Advisers

Published: 20 August 2025

A new study by Rathbones reveals a significant gap in the philanthropic planning market that presents substantial opportunities for forward-thinking financial advisers. The research, highlighted in Third Force News, shows that whilst wealthy families increasingly want to leave money to charity, nearly half are deterred by legal and financial complexity.

The Market Opportunity: Growing Demand Meets Service Gap

The data reveals compelling trends that suggest a substantial market opportunity. Among high-net-worth individuals with average estates exceeding £3 million, 42% cite legal and financial complexity as the primary barrier to including charitable gifts in their wills. Additional barriers include lack of knowledge (39%) and uncertainty about where to begin (26%).

This complexity barrier exists despite strong philanthropic intentions. The research shows that 53% of wealthy individuals have increased charitable donations in the past two years, with 66% expecting to give more in the next two years. Currently, 62% already include a charitable gift in their will, averaging £233,000.

For advisers, the most telling statistic may be that 70% of wealthy families intend to speak with their financial adviser about charitable giving in the next five years, compared to just 51% who have already done so. This represents a significant pipeline of potential conversations and planning opportunities.

Understanding the Tax Planning Advantage

One of the most compelling aspects of legacy giving advice centres on inheritance tax (IHT) planning. The research reveals that 20% of wealthy families were unaware that donating at least 10% of a net estate reduces IHT from 40% to 36%. Crucially, once informed of this benefit, 84% said they would consider leaving 10% of their estate to charity.

This knowledge gap presents an immediate opportunity for advisers to provide value through education and strategic IHT planning. The ability to demonstrate both philanthropic impact and tax efficiency creates a compelling value proposition for clients.

Strategic Positioning for Advisory Firms

Establishing Thought Leadership

The complexity barrier that deters many wealthy families also creates an opportunity for advisers to position themselves as specialists who can navigate these challenges. Effective brand positioning around philanthropic planning can differentiate firms from competitors who view charitable giving as an afterthought rather than a core service.

Consider developing expertise in areas where client knowledge is particularly limited. The research shows that only 10% have planned non-cash charitable gifts (property, investments, valuables), despite 82% being likely to do so when informed. These gifts are typically IHT-exempt and excluded from estate valuation, presenting significant tax planning opportunities.

Building Professional Networks

The data reveals interesting trends in professional consultation patterns. Whilst 70% of wealthy families plan to speak with financial advisers about philanthropy, the figures for other professionals are lower: 48% plan to speak with lawyers (versus 22% who already have) and 21% with accountants (versus 14% who already have).

This suggests an opportunity to become the central coordinator for philanthropic planning, working collaboratively with legal and accounting professionals. Developing strong professional networking strategies and referral generation approaches can position your firm as the hub for comprehensive estate and philanthropic planning.

Content Marketing and Client Education

The knowledge gaps identified in the research point to specific content marketing opportunities. Many clients need education about:

• How charitable giving integrates with estate planning
• The IHT reduction benefits of structured giving
• Non-cash gift planning and its advantages
• Donor Advised Funds and their flexibility

Developing comprehensive content creation strategies around these topics can attract prospects whilst educating existing clients. The key is to address complexity head-on, breaking down sophisticated concepts into accessible guidance.

Educational Programme Development

Given that 26% of wealthy individuals admit uncertainty about where to begin with philanthropic planning, there’s clear demand for structured education. Client education programmes focused on legacy giving can serve multiple purposes:

• Demonstrating expertise and building trust
• Identifying clients with philanthropic interests
• Creating opportunities for deeper planning conversations
• Generating referrals from satisfied participants

Implementation Considerations

Developing Internal Expertise

Successfully capitalising on this opportunity requires developing genuine expertise in philanthropic planning. This extends beyond basic knowledge of charitable tax reliefs to understanding:

• The charity sector landscape and different types of organisations
• Governance requirements for larger gifts and foundations
• International giving considerations for global families
• The interplay between philanthropic and intergenerational wealth planning

Technology and Tools

Modern philanthropic planning often involves sophisticated structures and ongoing management. Consider whether your current technology stack supports:

• Charitable remainder trust modelling
• Donor advised fund administration
• Impact measurement and reporting
• Integration with estate planning software

Marketing and Communication Strategy

The research suggests that many wealthy individuals want to engage in philanthropic planning but need guidance and reassurance. Your thought leadership and PR strategy should emphasise your ability to simplify complexity whilst delivering sophisticated outcomes.

Consider hosting educational events and webinars that bring together clients, prospects, and professional partners. Joint events with solicitors and accountants can demonstrate collaborative expertise whilst expanding your professional network.

Measuring Success and ROI

As with any strategic initiative, it’s important to establish metrics for success. Consider tracking:

• Number of philanthropic planning conversations initiated
• Value of assets under management related to charitable structures
• Number of referrals from professional partners
• Client satisfaction scores for philanthropic planning services

The research suggests that families who engage in philanthropic planning often have significant assets and strong relationships with their advisers. These clients may represent higher lifetime value relationships with enhanced loyalty and referral potential.

Looking Forward: Market Trends and Opportunities

The convergence of several trends makes this an opportune time to develop philanthropic planning expertise:

• Growing wealth concentration among high-net-worth families
• Increasing social consciousness and desire for impact
• Complex tax environment creating demand for sophisticated planning
• Regulatory focus on outcomes and client value

Financial advisers who can successfully bridge the gap between philanthropic intent and effective implementation may find themselves with a significant competitive advantage in serving wealthy families.

The Rathbones research suggests that the infrastructure for philanthropic giving is evolving, with new solutions like Donor Advised Funds making charitable giving more accessible. Advisers who understand these tools and can integrate them into comprehensive wealth planning strategies will be well-positioned to serve this growing market.

For firms considering whether to invest in developing philanthropic planning capabilities, the research provides compelling evidence of both client demand and service gaps in the current market. The question may not be whether to develop these capabilities, but how quickly to begin building the expertise needed to serve this growing client need effectively.

For financial advisory firms looking to develop their philanthropic planning capabilities and marketing strategy, consider how lead generation campaigns and web design optimisation can support your positioning in this growing market.