Building Generational Wealth: Beyond Financial Riches

Generationally speaking, the average age of a nonprofit

donor is somewhere between a Boomer (1946 – 1964)

and the Matures/Silent generation (before 1946). Why

the age variation? It depends on type of organization

and sector, like education, religion, health, animal

welfare, etc. Studies also show that generational

charitable giving is typically an activity that isn’t

meaningfully found until around age 55. And over the

next four decades, by 2061, Generation X (1965-1980) and Millennials (1981-1995) will inherit $59 trillion in wealth from their Boomer (1946- 1964) parents and other adults.

This benevolent power will make them the most significant donors in the history

of philanthropy. Yet the “three-generation curse” is crucial for donors who want to

build and preserve wealth for their family. It is estimated that 70% of families lose

their financial wealth 70% of families lose their wealth in the second generation and

90% lose it in the third! By learning from the mistakes of others, we can ensure that

this hard-earned wealth lasts, and benefits future generations. Although the term,

“generational wealth” is often associated with money and assets passed down from

one generation to the next, clearly financial wealth alone does not guarantee

generational success.

In this blog post, I want to examine a few of the opportunities and challenges, particularly for start-up and new nonprofit organizations. Primarily led and directed by Generation X and Millennials, there's a need to build and cultivate relationships with donors over the age of 55 now – don’t overlook them! Older donors have higher average gifts and long-life expectancy, which gives them the best long-term value.

I will also point to the multifaceted nature of generational wealth, exploring how it

encompasses more than just monetary assets to generations of new donors and its

impact on the nonprofit sector. Here are three areas to consider:

• The Foundation of Financial Stability Financial resources are a conduit and undeniably a crucial aspect of generational wealth. They can afford opportunities and set the stage for upward mobility and prosperity. Without proper management, education, and a solid foundation of values, along with a healthy relationship with money, that monetary inheritance can quickly dissipate. As the saying goes, “A fool and his money are soon departed.” The same adage is true for nonprofits – accumulated assets, investments etc. can provide sustainability. Your mission, trustworthiness, and what you value matters to your donors. To preserve their tax-exempt status, nonprofits must comply with any Federal, state, and grant-related regulations and disclose their finances to the public. Nonprofits require a delicate balance of passion, vision, and strategic/business acumen. We need to equip and empower our future generations of leaders.
  

• Knowledge and Education: Empowering Future Generations Education is one of the most powerful tools for building generational wealth. This goes beyond formal schooling; it encompasses a continuous thirst for and pursuit of knowledge and skill development, including interpersonal skills. In other words, it comprises a combination of “book sense” and “common sense” to continue to build critical thinking skills. The challenge: nonprofit sustainability is threatened. Studies show that there’s a steady decline in aspirations to lead nonprofit organizations. Older donors have the intellectual capital to support and empower younger generations of donors and nonprofit leaders. The knowledge and wisdom that older generations to can provide to younger leaders is priceless to navigate the complex challenges of nonprofit management and seize opportunities for personal and professional growth. Moreover, passing down practical knowledge, such as financial literacy and business acumen, equips future generations with the tools to manage and grow their wealth. By fostering a culture of lifelong learning, younger donors ensure that their legacy remains relevant and nonprofit organizations can adapt to changing times.
  

• Social Capital: Networks, Relationships, and Intergenerational Communication Generational wealth encompasses social capital—the networks and relationships cultivated over time. Connections within communities, professional circles, and industries can open doors to opportunities and resources otherwise inaccessible. Those involved in the nonprofit sector, whether paid or in a volunteer capacity, should look for ways to nurture these intergenerational relationships. Effective communication across generations is essential to the collective prosperity of our communities. Generational wealth is more than about money. It encompasses a legacy of values, knowledge, and opportunities that can profoundly impact future our generations. Boomers are in the developmental life stage where leaving a legacy is important. Finding ways for that to happen is up to all of us! It is a testament to the impact of our actions and the legacy we choose to create. Leaders create leaders. Many of us want to leave a legacy, “pass the baton” that extends far beyond material riches, that’s what Lead Like Big Mama does for me. And sometimes it’s something as simple, precious, and delicious as a family recipe for baking monkey bread handed down three generations and counting! Thanks For Reading and Thanks in Advance for Sharing This Resource with Others!

Join me at my next Big Mama’s Table:

Free 1-hour webinar:

“Grant Ready: Assessing Your Nonprofit’s Fundability” – A Preview

Date: Saturday, June 22 nd - 1:00 – 2:00 EST

Are you new to this work? Want to start your nonprofit on the right path - as a leader, board member, grant writer or policy/advocate?

Find out what it takes BEFORE you begin asking for money from donors or funders!

Join me at this free 1-hour informational session to preview my upcoming three-part

course- “Grant Ready: Assessing Your Nonprofit’s Fundability”.

By sharing my experience and background in philanthropy: as a program officer at a foundation, grant writer, and a certified grant reviewer, you’ll learn what nonprofits need to start off right and build toward long-term financial sustainability.

RSVP

From Big Mama’s Playbook:

Did you know:

• Research shows that 90% of successful requests are made by sources with whom you have an existing relationship. Fundraising is really about people and connecting with people; whether an individual or institutional (foundations/government) prospect.
  

Grant Tip: Three words to guide your funding pursuits: Look locally first. They are more

accessible to you and more likely to support and fund local initiatives.

Are you new to fundraising and grant writing? Know someone who needs to know?

Free 1-hour webinar:

Find out what it takes BEFORE you begin asking for money from donors or funders!

Join me at this free 1-hour informational session to preview my upcoming three-part

course- “Grant Ready: Assessing Your Nonprofit’s Fundability”.

What are some initial steps non-profits should take BEFORE the writing process even

begins? By sharing my experience and background in philanthropy: as a program officer, grant writer, and a certified grant reviewer, you’ll learn what nonprofits need to start off right and build long-term financial sustainability.

“Grant Ready: Assessing Your Nonprofit’s Fundability” – A Preview

Date: Saturday, June 22nd - 1:00 – 2:00 EST

RSVP

*Featured Grant Opportunities This Week:

• Infants/Children: (new) The Caplan Foundation for Early Childhood supports projects in the following areas: early childhood welfare, early childhood education and play, and parenting education. Deadline: May 31, 2024 for letters of intent only. Caplan Foundation
  

• Community: (new) Borealis Philanthropy invites applications for the Spark Justice Fund (SJF) focuses on supporting grassroots and power-building groups to decarcerate, close jails, and advance transformative visions of pretrial justice in the communities most impacted by incarceration. Applicants may request grants of $10,000 to $25,000. Next deadline: May 31, 2024 Borealis Philanthropy BrooklynOrg (formerly Brooklyn Community Foundation) is a network of changemakers who believe that Brooklyn, New York, invites applications from local organizations. Provides multi- year, general operating support of up to $45,000 per year, for up to three years in support of organizations that advance racial justice and provide critical resources to BIPOC and other groups who have been historically disempowered and discriminated against across Brooklyn. Deadline: Initial applications received by May 15, 2024, will be invited to submit a full proposal in June 2024, with funding awarded in December 2024. BrooklynOrg The Ramona Community Foundation (RCF), an affiliate of the San Diego Foundation, aims to enhance the quality of life for those who live, work, and play in the Ramona region. Funding may be used to expand existing programs, replicate programs tested in other communities, or to launch totally new efforts. Grants ranging from $1,500 to $10,000. Deadline: May 30 th 5:00 PM PST Ramona Community Foundation The U.S. Bank Foundation’s Community Possible Grant Program supports nonprofit organizations in U.S. Bank’s 26-state geographic scope: AZ, AR, CA, CO, ID, IL, IN, IA, KS, KY, MN, MO, MT, NE, NV, NM, NC, ND, OH, OR, SD, TN, UT, WA, WI, and WY Grants are provided in a number of areas. From the website: “New and emerging organizations bring balance to our grant making through our Letter of Interest (LOI) application. Nonprofit organizations new to the U.S. Bank Foundation may submit an LOI at any time during the year.” U.S. Bank Community Possible Grant Program
  

• Education: Grants facilitate hands-on STEM activities for North Carolina students. The Burroughs Wellcome Fund’s Student STEM Enrichment Program supports diverse programs in North Carolina that enable primary and secondary students to participate in creative, hands-on STEM activities and pursue inquiry-based exploration. Grant awards provide up to $60,000 per year for three years.  Deadline: June 11, 2024 Burroughs Wellcome Fund
  

• Health/Safety/Environment: The Rose Foundation for Communities and the Environment is administering the California Hazardous Waste Protection Fund, a grants program providing support to disadvantaged communities working on issues related to hazardous waste and toxins across the state. Established nonprofit organizations: grants in the range of $20,000 to $25,000. The foundation also welcomes proposals from small grassroots conservation and environmental justice groups, but the requested amount should be in the $5,000 to $7,500 range and not exceed 25 percent of the organization’s typical annual expenses. Deadline: Applications accepted throughout the year until April 2025 or when funds are exhausted. Rose Foundation People with Disabilities: The Borealis Philanthropy Disability Inclusion Fund (DIF) supports groups led by people with disabilities, disabled people of color, disabled queer and trans folks, building a more liberatory world free from ableism. Grants of $75,000 per year for two years.  Deadline: May 29, 2024 Disability Inclusion Fund *This listing primarily focuses on regions of the country and targets communities: urban/suburban/rural where I have lived or worked, or other places that touch my life – where I know people are working hard to make a difference. And besides regional and state-specific grants, national and Federal grant opportunities related to the health and well-being of communities and families will also be included in this listing. *Featured Career Opportunities: Human Services Adjunct Assistant Professor Pool, Los Rios Community College District, Sacramento, CA. Apply *(listings included here are not a personal endorsement or for promotional purposes, just sharing…) Weekly wisdom, in their own words: “There are people who have money and people who are rich.” — Coco Chanel (1883 – 1971)