It is estimated that over the next 10 years, nearly $9 trillion will transfer from one generation to the next, but the so-called “great wealth transfer” doesn’t stop there. Over the next 50 years, a staggering $97 trillion is expected to transfer across generations. Numbers like these are a huge opportunity for charities to fulfill their mission and vision.
At the helm of the great wealth transfer are women and millennials. They are the largest demographics inheriting this transition of wealth, and they are also transforming giving. Charities should consider modifying their giving strategies to target these key audiences.
Women Are Revolutionizing Giving
Women are driving more philanthropic decisions and increasingly outnumbering men as the household CFO. According to recent studies, women make 83% of household consumer decisions and control $14 trillion in assets.
Not only are women asked to give more often, they are more likely to donate across virtually all income levels. They are also more likely to donate their time to a charitable cause. Knowing this, there are ways charities can adapt their strategies to better appeal to this target audience.
Ensure your campaign has emotional appeal
Donors, especially women, tend to engage with charities that give them an emotional reaction. Consider how your organization can weave emotion into its next campaign
Be transparent in your communications
Donors want to know how their time and monetary donations are directly impacting the organization. When they know their donation is making an impact, they are more likely to donate again.
Create an event strategy
Create events to benefit your organization with opportunities for donors to invite their own networks and friends. This helps you to expand your donor base.
Include a social media component to your events and campaigns. Since women are more likely to use social media, they are also more likely to share their experiences on their social networks, which could generate positive exposure for your organization.
Millenials Are Changing Philanthropy
Millennials are also revolutionizing charitable giving, but in a different way than women. They prefer to do more good by either investing their time and assets in socially responsible ways or by supporting organizations with views in line with their own. Charities must convey how their organizational mission aligns with millennials’ personal values.
Show them it’s about more than money
Many millennials have limited funds. This is why it’s important for charities to communicate how millennials can make an impact by not only donating their money, but also by donating their time. Show millennials how their volunteer time is a fulfilling and rewarding experience, and how they are impacting the organization and community.
Make it easy to electronically sign up or donate
Millennials grew up with the latest technology and are more comfortable using technology than other generations. Have tablets at events that have technology for credit card donations. This is also a good way to get millennials signed up for your newsletter or volunteer list.
Have a strong social media presence and following
Millennials like to share their experiences with their networks, especially on social media. Don’t miss out on the advantages in store during this revolutionary time. Proactive measures can help you capitalize on the great wealth transfer.
Sources: United Philanthropy Forum, The Street, WealthManagement.com, MarketWatch.