Article for Kent Law Society
Author Carol Lynch, CEO Kent Community Foundation
Date: 1 March 2016
Contact: Alison Baldwin, Coast
T: 01233 503200
E: Alison@coastcommunications.co.uk
Managing legacies on behalf of clients
As a trusted advisor to your clients, you are likely to be approached regarding charitable legacies they are considering making, or perhaps you are the executors of a Will and have been asked to distribute an estate or bequest to local charitable causes in accordance with your client's wishes. Here Carol Lynch, Chief Executive of Kent Community Foundation, explains the role they can provide to law firms in this position.
When law firm Boys & Maughan were tasked with administering a six-figure charitable legacy on behalf of a client who wanted the money to provide on-going support to smaller organisations, rather than a one-off bequest to a single cause, they called on Kent Community Foundation to help create a lasting legacy. The Albert Burns Children's Trust Fund was established at Kent Community Foundation, who take care of the day-to-day running of the fund, with the firm remaining fully involved in advising how the money will be spent. The Foundation researches worthy charitable causes and projects and prepares a shortlist to be considered at an annual meeting with Boys & Maughan.
Law firms are expert in the regulatory and compliance issues involved in setting up and running a charitable trust, but many tell us they don't have the time to run the grant-making side, nor the detailed knowledge of where funding, even small amounts, can really make a difference locally. This is where Kent Community Foundation comes in, with over 14 years' experience of managing all aspects of local grant-making from handling enquiries and researching projects; to managing applications, due diligence and follow-up monitoring and evaluation. Kent Community Foundation specialise in grants programmes that support local community causes.
Kent Community Foundation runs a number of services for individuals, families and businesses who would like help with their charitable giving and these services extend to the professional advisors who are working with clients interested in philanthropy. More and more people are recognising that a Donor Advised Fund at the Community Foundation is a convenient and cost effective alternative to setting up a stand-alone charitable trust. All of the administration and day-to-day running is managed by Kent Community Foundation, which offers a convenient and cost-effective solution for busy individuals.
While donor advised funds are typically set up during the donor's lifetime, the Legacy Service is for people who want to leave a gift to the local community in their Will. A legacy fund at Kent Community Foundation is ideal for those who would like their bequest to support a range of smaller causes, where a little goes a long way, rather than make a gift to a single cause. It is a very straight-forward and effective service whereby the individual simply names Kent Community Foundation as a beneficiary in their Will and, in parallel, draws up a letter of wishes to outline how they would like us to manage their legacy. The donor can name individual organisations they would like their legacy fund to support, or just general themes, such as local children's charities. A legacy fund can be set up in an individual's or family name and the donor can tell us if they would like surviving friends and family to be involved with the grant-making decisions in the future. Unlike other charitable gifts, a legacy can be invested to create a lasting gift for the people of Kent, as an enduring memorial to the individual.
Professional firms may also want to consider Trust Transfers, to help revitalise trusts that have become moribund or where trustees are simply finding the role burdensome, especially where it is difficult to recruit new trustees or to make effective grants. Kent Community Foundation can provide a safe haven for such trusts and ensure that grant-making is resumed in the spirit of the original objectives. Trustees can stay fully involved as advisors recommending future grants, whilst the legal responsibility is transferred to Kent Community Foundation.
Kent Community Foundation provides very straightforward solutions and our expertise is key to matching deserving causes with the criteria of your client.
Kent Community Foundation is a charity and is part of a national network of 48 Community Foundations with the aim of transforming the lives of people living locally. We also work in partnership with other grant-making bodies to maximise the benefit for the people of Kent. Since its establishment in 2001, Kent Community Foundation has given away more than £26million in grants, and our total endowment now stands at more than £11million.
Of the £2 billion left annually in the UK to charities, three quarters of this goes to charities turning over in excess of £10 million, which doesn't leave much for the many smaller local organisations.
If you are looking to help your clients give back to their local community, we would be delighted to discuss how we can help.
For more information call 01303 814500 or www.kentcf.org.uk
Author Carol Lynch, CEO Kent Community Foundation
Date: 1 March 2016
Contact: Alison Baldwin, Coast
T: 01233 503200
E: Alison@coastcommunications.co.uk
