Trustee Guide for Receiving Large Donations & Legacies
One of our clients recently received an exciting piece of news – a large legacy had been left to their Charity 😊.
This is fantastic news, but receiving a major gift or legacy is a moment of opportunity and responsibility for any charity. Trustees should not simply record the receipt; they are required to actively consider key matters to satisfy their legal duties and best practice expectations.
Before we start, it’s important to remember that Trustees should always start from a position of accepting donations – refusing or returning is only for exceptional circumstances. If you are a smaller charity and receive a large legacy or donation, don’t panic and think you have to refuse it because it’s complicated.
Below is a practical process that Trustees can follow, rooted in Charity Commission guidance and aligned with current SORP accounting principles (including SORP 2026 where relevant).
1. Understand What Is Being Given
Before acceptance, trustees should know:
- exactly what is being gifted (cash, property, artwork, assets);
- how the charity was named in the will, and on what terms;
- who is acting as executor or representative;
- many legacies are paid by a firm of solicitors, and trustees can ask to see a copy of the will if they have specific concerns.
This links back to donor/estate validity and governance requirements: trustees must exercise reasonable care to ensure they know the source of funds or assets coming into the charity.
2. Check for Restrictions or Conditions
Legacies can be:
- Unrestricted – charity free to apply as needed; or
- Restricted / Conditional – must be spent in a prescribed way.
If there are true conditions (not simply wishes), trustees must decide whether they can comply. If not, they may need legal advice or Commission consent. Conditions attached to legacy gifts must be respected or otherwise formally addressed.
3. Consider Risks to the Charity
Trustees should ask:
- Are there any ethical or reputational implications of accepting this legacy?
- Might there be conflicts of interest between donors and the charity?
- Are there security, legal, storage, or disposal costs the charity needs to manage?
Good governance means trustees actively consider these dimensions rather than treating a legacy as an administrative formality.
Remember: It is mandatory for Trustees to report, as a serious incident, to the Charity Commission if you receive an anonymous donation of £25,000 or more.
4. Ensure Proper Accounting Treatment
Under the Charities SORP (both current and SORP 2026), legacies and donations are categorised as income when:
- the charity has sufficient evidence of entitlement,
- receipt is considered probable, and
- the amount can be reliably measured.
For non-cash legacies like artwork, trustees will need documentation of valuation and clear accounting treatment, as the SORP treats legacies as non-exchange income. SORP 2026 emphasises legacy recognition and presentation in financial statements for periods starting after 1 January 2026.
5. Document the Decision in Minutes
It’s not enough to note the receipt in your minutes - trustees must record that they have:
- Reviewed the will, executor confirmation and asset details;
- Evaluated risks and legal position;
- Discussed and resolved to accept (or refuse) the legacy in the best interests of the charity;
- Documented any anonymous donations and, if over £25,000, documented that it has been reported to the Charity Commission as a serious incident; and
- Assigned follow-up tasks (e.g., valuation, storage arrangements, accounting recognition).
This written record is your governance shield and audit trail.
6. Plan the Use and Monitoring of the legacy
Once accepted, trustees should decide how the gift will be used:
- Will it be sold?
- Held as an asset?
- Used directly in charitable programmes?
- If the legacy or donation is restricted, the planned use will need to match those restrictions specifically.
If the legacy is significant relative to the charity’s activity, it’s good practice to include narrative in the Trustees’ Annual Report on income received from legacies and how it was deployed - particularly under SORP 2026’s refreshed reporting expectations.
Final Thought
Trustees are the stewards of a charity’s assets - including gifts of large donations or received on death. A legacy, perhaps more than any other form of income, demands thoughtful attention: both to honour the donor’s intent and to safeguard the charity’s integrity.
Trustees could also have a policy around what is considered a large gift or legacy, so that it’s very clear to all involved.
In documenting decisions properly, trustees fulfil their duty with prudence, transparency and integrity.
For a free downloadable checklist for the receipt of large donations and legacies click here.
Useful links:
How to report a serious incident
Accepting, refusing and returning donations