The Australian Centre for Philanthropy and Nonprofit Studies, qut



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Key issues and emerging trends


The charitable sector in Australia is highly invested in charitable giving and the potential for an increased flow of charitable bequests to help sustain its many initiatives. The establishment of the Include a Charity campaign in Australia exemplifies the importance placed on this issue and its potential. Include a Charity involved some 140 Australian charities with an interest in charitable bequests coming together in an effort to encourage more charitable bequest giving. The campaign has consolidated, recently becoming part of the wider work of the Fundraising Institute Australia (FIA). The challenge is for charitable organisations, fundraisers, donors, professional advisers and policymakers to work together to identify and implement a multiplicity of strategies including those that influence the prevailing social norms around estates, inheritance and charitable bequests.

In relation to research that may assist in rising to the challenge, there is a body of recent scholarly investigation that seeks to better understand motives for leaving charitable bequests and the ways in which that might happen. One stream involves field experimentation with the classical sociological theory of solidarity and associated social role of social influence and societal norms. Another involves increased understanding of the role played by the desire for a personal legacy.


Nudging


The UK Cabinet Office’s Behavioural Insights Team (BIT) have highlighted the importance of social influence in a series of randomised, controlled trials (Behavioural Insights Team 2013).

The BIT analysis showed that when solicitors or Will-writers simply mentioned to people that leaving a gift to charity was an option the percentage of people who did so rose from just 5% to 11%. In a trial involving 1,000 individuals preparing new Wills over a 6-month period, a group of professional Will-writers employed three different techniques. When no mention was made to leaving a gift to charity, some 5% of Will-writers included a charitable gift. When Will-writers simply mentioned to people that leaving a gift to charity was an option the percentage of people who did so rose to 11%. When Will-makers were ‘nudged’ (advised of the practices of others) and asked if there were any charities that they were passionate about, those including a charitable bequest rose to 15%. The third option involved framing the question from a perspective of social norms (see Table 6.1).



Table 6.1 UK Will-writers including a charitable bequest in response to being ‘nudged’

  1. Will-writer approach: base line. No question asked about charitable intent. 5% included a bequest

  2. Will-writer approach: plain ask. Asked Will-maker ‘Would you like to leave any money to a charity in your Will?’ 11% included a bequest.

  3. Will-writer approach: social norm—‘nudged’. Asked Will-maker ‘Many of our customers like to leave money to charity in their Will. Are there any causes you’re passionate about?’ 15% included a bequest.

Source: Baker (2014) derived from: Behavioural Insights Team 2013, Applying Behavioural Insights to Charitable Giving, Cabinet Office, London (BIT 2013)

The insights derived by the BIT (2013) included Insight 3, ‘Focus on the social’:

We are all influenced by the actions of those around us, which means we are more likely to give to charity if we see it as the social “norm”’ (Behavioural Insights Team 2013, 11)

In their analysis of the study, BIT members observed that a ‘striking feature of our findings is that this kind of simple behavioural ‘nudge’ can boost legacy giving to a similar degree as the UK estates tax, at a much lower cost’ (Sanders and Smith 2014, 15). The importance of this in the Australian context is that professionals involved in providing financial advice and estate planning services have been found to be reluctant to raise giving with their clients (Scaife and Madden 2006; Madden 2009) and the analysis of the national sample of Australian Wills processed in 2012 found that advised Wills were no more likely to include a charitable bequest than those prepared using a Will kit (Baker 2014).


Secular immortality and motivation


In another thread of insight into influences over charitable bequeathing behaviour researchers have emphasised the important link between making a decision to include a charitable bequest and self-reflection on personal life history and mortality (James III and O’Boyle 2014; Schervish 2006; Routley 2011; Routley, Sargeant and Scaife 2007).

In an unprecedented use of brain scanning, more accurately functional magnetic resonance imaging (fMRI), US researchers (James III and O’Boyle 2014) have observed that visualising desired outcomes is important to decisions to give. As bequest outcomes necessarily occur outside a Will-maker’s lived experience it is more difficult to visualise outcomes for bequests than for giving during his or her lifetime. The authors argue that while there may be an inherent reluctance for individuals to visualise the final chapter of their lives, once engaged they ‘may seek to leave an enduring legacy’ (James III and O’Boyle 2014, 355).



These findings are consistent with evidence from other studies on a range of influences that are particularly relevant to charitable bequest decision-making, including:

  • the importance of being remembered beyond the grave (Curasi, Price and Arnould 2003; Scaife et al. 2012), especially among the wealthy (Hirschman 1990; Schervish, Havens and Whitaker 2006; Routley and Sargeant 2015)

  • the enhanced role of reciprocity in bequest giving, relative to gifts made inter vivos (Sargeant and Hilton 2005)

  • the greater attraction of specific purpose, longer-term bequest options that enable the person making a bequest to make a difference that is differentiated from general purposes and operational support (Routley, Sargeant and Scaife 2007), and

  • the ways in which charitable bequests are ‘laden with symbolism, a function of the reminiscences of the individual and reflective of the need for the self to live on and achieve a degree of symbolic immortality’ (Routley and Sargeant 2015, 869).


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