billetts is a management consultancy company delivering media and marketing effectiveness services for local, national and multinational businesses.
They have developed LIFE by working with Barnardos to help budget management by forecasting legacy income. billets are also in talks with other charities who are considering incorporating LIFE into their forecasting.
Essential to the work of charities is to budget accurately. Legacy income contributes the highest proportion of voluntary income in the charity sector. However, future legacy income is particularly difficult to determine.
There may be a large number of notifications (sent by a solicitor to the charity to inform of the charity’s presence in the will, after the client has died), but these can vary in number per month, in value from £0 to over £2,500,000 and in the time that they are actually paid out.
billets’ LIFE model offers a possible solution to this complex mathematical problem. It is believed that 3 years worth of information is needed to use to the model, but there is not a definite number of notifications needed to make it effective.
LIFE delivers a simulator which can be used to aid legacy income forecasting by allowing the user to understand the individual components that make up income, reviewing and revising historical cases in real time and providing an up-dating performance evaluation tool.
It provides a set of automated standard legacy KPI metrics and a calculation of the percentage of income that will be delivered post-notification.
Ultimately, it provides a best estimate of core future performance in the short, medium and long term. Barnardos have been testing for 6 months with 96% accuracy.
Signed-in Organisational members can read the full report, here.
