Tapping into $59 Trillion: How Nonprofits Can Prepare for a Generational WealthTransfer
- Pat Kelsaw
- May 6, 2024
- 8 min read
As the wealth of the Baby Boomer generation transitions to
Generation X and Millennials, nonprofits face an unprecedented
opportunity to secure funding for their causes. By 2061, it's
estimated that $59 trillion will change hands, presenting a
significant potential windfall for charitable organizations. First, to
effectively tap into this inheritance, the sector must understand the unique characteristics and priorities of Boomers, Generation X, Millennials. And secondly, in order to capitalize on this opportunity, nonprofits should adapt their fundraising strategies to resonate with the values and preferences of these three generations, while ushering in the youngest generation of new potential donors (which includes my eldest grandson) and the newest members to the workforce, known as Generation Z!
Understanding the Generational Shift:
With the emergence of Generation Z entering the workforce and Baby Boomers
transitioning into retirement, the need for a comprehensive intergenerational fundraising
strategy has never been more apparent. This blog post will explore the importance of
nonprofits adapting to an intergenerational fundraising model and provide practical steps to
implementation.
Know your audience(s). Before delving into the specifics of an intergenerational
fundraising strategy, it's crucial to understand the unique characteristics and donor
preferences of each generation.
Baby Boomers (born 1946-1964): Often characterized as philanthropic leaders, Baby Boomers value personal connections and traditional forms of giving, such as direct mail and phone calls.
Generation X (born 1965-1980): Known for their independence and skepticism, Gen Xers prefer targeted appeals that align with their values and interests. They are likely to engage with nonprofits through social media and online platforms.
Millennials (born 1981-1996): As digital natives, Millennials are tech-savvy and socially conscious. They prefer interactive and transparent communication from nonprofits, including crowdfunding campaigns and peer-to-peer fundraising.
Generation Z (born 1997-2012): The youngest generation in the workforce, Gen Z values authenticity and social impact. They are drawn to visually appealing content on social media platforms and seek (and need) opportunities for hands-on involvement with causes they care about.
While each generation may have distinct preferences, successful fundraising requires
nonprofits to learn how to bridge the gap between them. An intergenerational approach
acknowledges the diversity of donors and leverages their collective strengths to maximize
impact. Because Boomers (1946-1964) and Traditionalists/Silent generation (born before 1946) are the biggest groups of donors, it makes the average donor age around 75! Nonprofits leaders and their boards can create a sustainable intergenerational fundraising strategy. By fostering collaboration and understanding between generations, you meet donors where they are by diversifying your fundraising channels.
Key Components of an Intergenerational Fundraising Strategy:
Personalize it: Tailor your fundraising efforts to the preferences and characteristics of each generation. Use current data analytics to segment donors by age, giving history, and communication preferences. Personalize outreach efforts to resonate with each group, whether through letters via “snail mail”, targeted emails, social media campaigns, or personalized stewardship initiatives. Also consider font sizes use of internet/text jargon.
Donor Engagement: While older donors may prefer traditional methods like direct mail and phone calls, younger donors may respond better to online platforms and social media campaigns. Implement multiple channels that accommodates various communication preferences and maximizes donor engagement. What’s your issue? Why is it important?
Storytelling and Impact: Appeal to donors' emotions by sharing compelling stories of your nonprofit’s impact. Highlight the tangible outcomes of their contributions and illustrate how their support makes a difference in the lives of those served by the nonprofit. Utilize multimedia tools such as videos, testimonials, and infographics to convey the organization's mission and impact. NOTE: This same storytelling component is important when approaching potential funders for any grantmaking support.
Technology Integration: Embrace technology to streamline fundraising processes and enhance donor experiences. Leverage fundraising platforms, mobile apps, and online donation portals to facilitate convenient and secure giving. Implement donor/customer relationship management (CRM) systems to track interactions, analyze donor behavior, and personalize communication strategies.
Building a Community & Social Network: Foster intergenerational connections through collaborative events and initiatives. Organize volunteer opportunities, fundraising events, and advocacy campaigns that appeal to donors of all ages. Encourage intergenerational dialogue and collaboration to promote a shared ownership of the nonprofit's mission. Building a sense of belonging and ownership furthers deeper connections.
Cultivating donor loyalty requires ongoing communication and engagement beyond that
initial donation. Nonprofits should implement strategies to nurture generational relationships with donors over time, including personalized acknowledgments, stewardship efforts, and opportunities for involvement in the organization's mission and activities.
With strategic planning, the impending generational wealth transfer presents an unparallel
opportunity for nonprofits to secure funding. By understanding the preferences and values of ALL FOUR generations, organizations can adapt their fundraising strategies to effectively
engage these donors. Embracing technology, communication, prioritizing storytelling, and
building personalized and community-oriented approaches are essential for tapping into this
potential $59 TRILLION donor pool. nonprofits can position themselves to thrive.
As part of my personal legacy, I hope that Lead Like Big Mama can empower the nonprofit
sector by offering information, resources, wisdom, and tools designed for new/start-up
organizations as well as those looking to adapt/change or think about the way they do their
business side of this work to align with the “heart” work – that is your mission,
Thanks For Reading and Thanks in Advance for Sharing This Resource with Others!
Are you new to this work? 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. Join me at my next Big Mama’s Table:
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.
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
*Featured Grant Opportunities This Week:
(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:
Borealis Philanthropy invites applications for the Spark Justice Fund (SJF)
focuses on supporting grassroots and power-building groups to de-carcerate, 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
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.
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
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.”
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
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.
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
*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:
Master of Social Work Adjunct Faculty, Samuel Merritt University, Oakland, CA.
Roddenberry Fellowship awards U.S.-based innovative, optimistic, and impact-driven individuals working toward social justice. The 12-month program provides a $50,000 grant and other supports. Applicants must be founders or co-founders of and currently hold the CEO, executive director, or equivalent position in their organizations, which must have been in existence for fewer than four years. The application process has three rounds. In round one, organizations are invited to submit a short application, due May 17, 2024.
*(listings included here are not a personal endorsement or for promotional purposes, just sharing…)
Weekly wisdom, in their own words:
“Where you see wrong or inequality or injustice, speak out, because this is your country. This is your democracy. Make it. Protect it. Pass it on....”
— Thurgood Marshall (1908 - 1993)
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