74% of adults in the UK support charities, but only 7% leave a charitable gift in their will. If you've supported a cause during your life, a legacy donation is the most impactful gift you can give — and it's 100% Inheritance Tax free.
This guide explains exactly how to leave money to charity in your will, the massive tax benefits, and how to structure your donation properly.
Contents
- Why leave money to charity in your will?
- The Inheritance Tax benefit, explained
- How to include a charitable gift in your will
- Types of charitable gift: pecuniary, residuary, specific
- How to choose the right charity
- Sample wording for a charitable bequest
- What happens if the charity no longer exists?
- Can family challenge a charitable gift?
- The largest recipients of legacy gifts
1. Why leave money to charity in your will?
Legacy donations (also called "charitable bequests") are gifts left to charities in your will. In 2024/25, UK charities received £3.6 billion from wills — accounting for 14% of total charitable income.
The impact of legacy gifts
- Cancer Research UK: 1 in 3 pounds comes from legacies (£177m/year)
- RNLI: 65% of funding comes from legacies (£120m/year)
- Guide Dogs: 75% of income from legacies (£35m/year)
- British Heart Foundation: £80m/year from wills
The average legacy gift
The average charitable bequest in the UK is £5,200. But even £500 can fund a year of clean water for a family (WaterAid) or train a volunteer counsellor (Samaritans).
Unlike regular donations, legacy gifts:
- Are 100% tax-free (no Inheritance Tax on charitable gifts)
- Can reduce IHT on your entire estate by 4% if you donate 10%+
- Don't affect your day-to-day finances
- Can be changed anytime while you're alive
- Create a lasting legacy beyond your lifetime
2. The Inheritance Tax benefit, explained
Leaving money to charity isn't just good for the world — it can save your family tens of thousands of pounds in Inheritance Tax.
How it works
Inheritance Tax (IHT) is charged at 40% on estates over £325,000 (or £500,000 if you own a home passing to children). Charitable donations are:
- Exempt from IHT: Every £1 to charity = £0 tax (vs. 40p tax on £1 to family)
- Reduce IHT rate to 36%: If you give 10%+ of your net estate to charity, IHT drops from 40% to 36% on the ENTIRE estate
A real example
Estate value: £1,000,000
Scenario A: No charitable gift
- Taxable estate: £675,000 (£1m - £325k threshold)
- IHT at 40%: £270,000
- Family inherits: £730,000
Scenario B: Give 10% to charity (£67,500)
- Charitable gift: £67,500 (tax-free)
- Taxable estate: £607,500
- IHT at 36% (reduced rate): £218,700
- Family inherits: £713,800
The result
- Charity receives: £67,500
- Family loses only: £16,200 (vs. £67,500 if IHT stayed at 40%)
The £67,500 gift costs the family £16,200.
In other words: Donating £67,500 to charity only costs your family £16,200 because of the reduced IHT rate. The government subsidizes your charitable giving.
3. How to include a charitable gift in your will
To leave money to charity, you simply add a clause to your will naming the charity and specifying the amount or percentage. The gift is paid by your executor before distributing assets to family.
What a valid charitable bequest needs
- Charity must be registered: Check the Charity Commission register
- Include full legal name: Use the charity's official registered name (not abbreviation)
- Add charity number: Helps executor identify the correct organization
- Specify the gift clearly: Fixed amount, percentage, or specific asset
- Sign and witness properly: Your will must comply with Wills Act 1837
4. Types of charitable gift: pecuniary, residuary, specific
There are three main ways to structure a charitable bequest:
Type one: a pecuniary gift (a fixed amount)
You leave a specific sum of money (e.g., £5,000, £50,000).
Example: "I give the sum of £10,000 to Cancer Research UK (Charity No. 1089464)."
Pros: Simple, clear, easy to understand.
Cons: Inflation erodes value over time. £5,000 today ≠ £5,000 in 20 years.
Type two: a residuary gift (a percentage of the estate)
You leave a percentage of your "residuary estate" (what's left after debts, taxes, and specific gifts).
Example: "I give 10% of my residuary estate to the RSPCA (Charity No. 219099)."
Pros: Percentage stays constant even as your wealth changes. Maximizes IHT benefits.
Cons: Harder to predict exact amount.
Type three: a specific gift (an item or an asset)
You leave a specific asset (property, shares, jewelry) to a charity.
Example: "I give my shares in British Petroleum plc to Oxfam (Charity No. 202918)."
Pros: Good for donating appreciated assets (no Capital Gains Tax on charitable gifts).
Cons: Asset might not exist at time of death (sold, lost, etc.).
Which type should you choose?
- For IHT reduction: Residuary gift (10%+ to unlock 36% rate)
- For simplicity: Pecuniary gift (fixed amount)
- For flexibility: Residuary gift (adjusts with wealth)
5. How to choose the right charity
Tens of thousands of charities are registered in England and Wales. How do you decide which to support?
Questions to ask
- Does this charity reflect my values? (Medical research, animal welfare, poverty relief, etc.)
- Do they have a track record? Check Charity Commission financials
- How much goes to the cause vs. admin? Top charities spend 80%+ on programs
- Will they still exist in twenty years? Large, established charities are safer bets
- Do they have a legacy programme? Many offer free will-writing services for legacy donors
Well-known charities by cause
Medical research
Cancer Research UK, British Heart Foundation, Alzheimer's Research UK, Macmillan Cancer Support
Children and families
NSPCC, Barnardo's, Save the Children UK, Children in Need
Animal welfare
RSPCA, Battersea Dogs & Cats Home, Dogs Trust, Blue Cross
Poverty and homelessness
Oxfam, Shelter, Crisis, The Salvation Army
The environment
National Trust, WWF UK, RSPB, Greenpeace UK
Emergency and rescue
RNLI, British Red Cross, St John Ambulance, Air Ambulance charities
Pro tip: You can split your charitable gift among multiple charities (e.g., 5% each to two causes, or £5,000 to three organizations).
6. Sample wording for a charitable bequest
Use these templates to add charitable gifts to your will:
A fixed amount (pecuniary gift)
"I give the sum of £[AMOUNT] to [CHARITY LEGAL NAME], registered charity number [NUMBER], of [CHARITY ADDRESS], for its general charitable purposes, and I direct that the receipt of the treasurer or other appropriate officer shall be a full and sufficient discharge to my Executors."
A percentage of the estate (residuary gift)
"I give [PERCENTAGE]% of my residuary estate to [CHARITY LEGAL NAME], registered charity number [NUMBER], of [CHARITY ADDRESS], for its general charitable purposes, and I direct that the receipt of the treasurer or other appropriate officer shall be a full and sufficient discharge to my Executors."
A specific asset
"I give my [DESCRIPTION OF ASSET, e.g., 'collection of rare books' or '500 shares in Unilever plc'] to [CHARITY LEGAL NAME], registered charity number [NUMBER], of [CHARITY ADDRESS], for its general charitable purposes, and I direct that the receipt of the treasurer or other appropriate officer shall be a full and sufficient discharge to my Executors."
More than one charity
"I give 10% of my residuary estate to be divided equally among the following charities:
- Cancer Research UK (Charity No. 1089464)
- RSPCA (Charity No. 219099)
- Oxfam (Charity No. 202918)
Each charity shall receive an equal share, and the receipt of each charity's treasurer or other appropriate officer shall be a full and sufficient discharge to my Executors."
7. What happens if the charity no longer exists?
What if you leave £10,000 to a charity, but it's been dissolved by the time you die?
The cy-près doctrine
Under the Charities Act 2011, if a charity no longer exists or can't use your gift, the Charity Commission will redirect it to a charity with "similar purposes" (called "cy-près").
Example: You leave money to "Dogs Trust Manchester" (a local branch). If that branch closes but Dogs Trust still exists, the money goes to Dogs Trust nationally. If Dogs Trust dissolved entirely, it would go to another dog welfare charity.
How to protect against this
Add a failsafe clause:
"If [CHARITY NAME] has ceased to exist at the date of my death, or cannot use this gift for its stated purposes, I direct my Executors to donate this sum to [ALTERNATIVE CHARITY NAME] or, if neither charity exists, to a registered charity selected by my Executors that operates in a similar field."
8. Can family challenge a charitable gift?
Yes — under the Inheritance (Provision for Family and Dependants) Act 1975, certain people can challenge your will if they believe they haven't received "reasonable financial provision."
Who can challenge a will
- Spouse or civil partner
- Former spouse (if not remarried)
- Children (including adult children)
- Anyone financially dependent on you
Ilott v Blue Cross (2017)
Heather Ilott's mother left her entire £486,000 estate to animal charities (RSPCA, Blue Cross, PDSA), excluding Ilott entirely. Ilott sued, arguing she needed financial support.
Result: Supreme Court sided with the charities. Ilott received only £50,000 (down from £160,000 awarded by lower courts). Courts give strong weight to testamentary freedom (your right to give your money to whoever you want).
How to minimise the risk of a challenge
- Leave something to close family: Even a small legacy (£10,000) reduces grounds for challenge
- Write a Letter of Wishes: Explain why you're leaving money to charity (e.g., "I've been financially independent; I want to support cancer research")
- Get legal advice: If you're excluding family entirely, consult a solicitor
- Review regularly: Update your will when circumstances change (divorce, births, deaths)
9. The largest recipients of legacy gifts
These charities receive the most legacy income annually (2024/25 data):
1. Cancer Research UK
Charity No. 1089464
£177m/year
2. RNLI (Royal National Lifeboat Institution)
Charity No. 209603
£120m/year
3. British Heart Foundation
Charity No. 225971
£80m/year
4. Macmillan Cancer Support
Charity No. 261017
£75m/year
5. RSPCA
Charity No. 219099
£65m/year
6. Guide Dogs
Charity No. 209617
£35m/year
7. Alzheimer's Society
Charity No. 296645
£32m/year
8. Oxfam GB
Charity No. 202918
£30m/year
9. National Trust
Charity No. 205846
£28m/year
10. Dogs Trust
Charity No. 227523
£25m/year
Want to see how to leave money to a specific charity? Browse our charity-specific guides:
Questions people ask
Do I pay tax on charitable gifts in my will?
No. Gifts to registered UK charities are 100% exempt from Inheritance Tax. If you donate 10%+ of your estate, IHT on the rest drops from 40% to 36%.
Can I leave money to a charity abroad?
Yes, but it must be a "qualifying charity" under the law of England and Wales to get IHT exemption. Check with HMRC if the charity qualifies. Safer option: donate to the UK branch (e.g., Médecins Sans Frontières UK).
What if I change my mind about which charity to support?
You can update your will anytime while alive. Write a new will or add a Codicil (amendment). The charity only gets the gift after you die, so you retain full control.
Do charities offer free will-writing services?
Many large charities (Cancer Research UK, RSPCA, National Trust) partner with solicitors to offer free will-writing if you include them as a beneficiary. Check the charity's website for "Free Will" schemes.
Can I specify how the charity uses my gift?
Yes — add "for [specific purpose]" (e.g., "for cancer research into childhood leukaemia"). But be cautious: if the purpose becomes impossible (cure is found), the charity may not be able to use your gift. Safer: "for general charitable purposes" or "for medical research."
What's the minimum I can leave to charity?
No legal minimum. You can leave £100, £1,000, or £1 million. Even small gifts make an impact: £500 provides 10 guide dog puppy training sessions; £1,000 funds a month of cancer research.
Do I need to tell the charity I'm leaving them money?
No legal requirement, but many charities appreciate being notified (they can thank you, keep you updated on their work, and plan for future income). Most have "legacy pledge" forms on their websites.
Add a charitable gift to your will in fifteen minutes
Exit State has a built-in charity donation section with IHT calculator. Legally compliant, plain-English. Build free — unlock to download and print for £79.
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Legal Disclaimer: This guide is for informational purposes only and does not constitute legal or tax advice. Charitable giving laws and IHT rules may change. For estates over £500,000 or complex charitable structures (trusts, endowments), consult a solicitor specializing in wills and estate planning.
Exit State wills are designed to comply with the Wills Act 1837 and the inheritance law of England and Wales as of February 2026. Users are responsible for ensuring their will is properly executed (signed, witnessed) to be legally valid.
Inheritance Tax information is based on current HMRC guidance (2025/26 tax year). The IHT-free threshold is £325,000 (nil-rate band) + £175,000 (residence nil-rate band if applicable). Consult a tax advisor for personalized advice.