CharityVillage® Research: Future bright for bequest programs

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Future bright for bequest programs
July 28, 1995; Canadian FundRaiser
Canada Seminar Group Ltd. recently launched its Spring 1995 Non-Profit Series with a presentation by Dr. Edward H. Pearce, Associate Director of Planned Giving, Department of Development, Queen's University speaking about "How To Generate Bequests". To reinforce the huge untapped potential source of charitable income that planned giving can provide, and to illustrate the major role that bequest programs will play in the future of Canadian charities, Dr. Pearce began his presentation with a comprehensive overview of societal trends and shared some new research findings. The highlights follow.
Most of us now know that a growing proportion of the Canadian population is getting older and living longer, that the smaller nuclear family has resulted in fewer potential beneficiaries, that people 50 or older are in control of 75% of all assets, that they hold an estimated $250 billion in real estate, and that an increasing number of people have become cash poor but asset rich as the result of inflation.
However, many may not be privy to the findings of the October 1994 Royal Trust Wealth Management Poll, a survey of the top 25% of Canadians by Income. According to that research, 45% of respondents indicated that they expected to receive an inheritance. Fully 81% described themselves as middle class, and of those whose assets were over $500,000, 35% still described themselves as middle class.
Impact on Planned Giving
This perception will certainly impact the ways that planned gifts are approached and marketed in the future. The priorities of those surveyed were as follows: 90% would pass on their estate to their heirs; 88% wished to minimize taxes on their estate; and 95% wanted to preserve the value of their assets after retirement.
Regarding their Wills and Estate Planning: 71% had made a will; 50% of the above had reviewed their will in the last 2 years; 72% had named an executor; 9% thought their heirs would disagree over their estate, and for respondents holding at least $250,000 of assets, the number rose to 16%; 93% indicated that they seek out as much information as possible before making a financial decision; however, 30% said that often they don't know where to get good information.
Almost half (49%) stated that none of their estate would go to a charity; 32% stated that up to 10% of their estate would be directed to a charity; 8% anticipated that more than 10% of their estate would flow charitably, and 11% did not answer the question. One final finding of note: of the 45% who expected to receive an inheritance, a high percentage indicated that they would consider making a charitable gift. Specifically, 77% of respondents in Alberta; 60% in Quebec; 81% in Ontario; 84% in the Prairie Provinces; and 75% in British Columbia.