ESSEX, UK. May 18th, 2026 – The Legacy Funding Corporation today announced a significant industry-wide opportunity for potential partners to collaborate with the development of innovative Charity ISAs.
The UK’s ISA market is worth £700 billion in value. The Legacy Funding Company deems that now is the time for similar financial instruments to be developed in order to address a growing funding gap in the charity sector.
According to recent data from AJ Bell, UK savers currently hold between £726 billion and £900 billion in ISAs, with more than 22 million adults using the tax-efficient savings vehicle. ISAs continue to attract strong participation due to their flexibility and tax advantages, with over 4 million people subscribing to stocks and shares ISAs annually, and a marked shift back towards cash ISAs amid economic uncertainty. A proposed Charity ISA would allow funds pledged in wills to be partially released early to charities through secured financial products.
The UK charity sector—receiving approximately £4.5 billion annually from legacy giving—is under increasing financial pressure due to probate delays. Research from IFA Magazine indicates that 87% of charities are impacted by probate delays, with over half forced to sell assets or cut services to manage cashflow gaps.
Despite strong public support (over half of UK adults donate to charity annually), funds pledged through wills can take months or years to reach beneficiaries due to estate administration and HMRC approval processes. The charitable sector makes up approximately 1% of global GDP.
The Legacy Funding Corporation believes that industry voices should now explore whether a charity-linked ISA-style or asset-backed funding model could provide a solution.
The concept would enable earlier access to a portion of pledged legacy funds, capital secured against estate value during probate, reduced reliance on volatile equity markets and potential tax benefits for both individuals and government.
Peter Collins, of The Legacy Funding Corporation, said: “There is a significant disconnect between when charitable funds are pledged and when they are received. During probate, millions of pounds just sit there—capital that could be deployed immediately to support essential services. Commercial organisations can forward-finance their invoices—why can’t charities access forward finance on their legacies?”
Recent data highlights a shift in saver behaviour, with static and rising interest rates and economic volatility driving increased demand for lower-risk, cash-based products. In the 2023/24 tax year alone, UK savers deposited nearly £70 billion into Cash ISAs—a 67% year-on-year increase.
This trend suggests that any future model aimed at supporting charities would need to balance security, accessibility, and modest returns, rather than relying on high-risk investment performance.
The proposal is not positioned as political policy, but as an industry-wide opportunity requiring collaboration between political parties, financial institutions and funders, pension funds and asset managers, legal and probate professionals, charities and policymakers and digital, print and broadcast media.
With millions of UK adults already engaged in ISA products, and over £4.5 billion annually flowing into charities via legacy giving, is it time to explore how financial innovation could unlock “capital in limbo” for social impact.
The Legacy Funding Corporation is seeking partners to work with to deliver this product for the charity sector and help the country. For more information contact Peter Collins.
ENDS