The Pentera Blog
Giving USA Report: Women Will Shape Much of the Great Wealth Transfer
A new report from Giving USA highlights the growing importance of women for current and future philanthropic giving.
The report, which examines the giving habits of different generations, notes that a significant share of the “great intergenerational transfer of wealth” will go to women.
“The philanthropic landscape will increasingly be shaped by the rising influence of a new generation of female donors,” the report states. “By 2035, $30 trillion in wealth will be transferred to younger women, most notably the children of Boomers.”
Of particular importance to planned giving, the report also notes that women:
- Tend to think longer-term than men and are therefore more focused on making sustainable investments.
- Often give to female-focused charitable causes.
- Are less likely than men to have spoken with a financial advisor (19% vs. 33% for men).
Other important insights from the report, Generations and Giving: A Literature Review on Philanthropic Trends Across Generations, include:
- The two oldest generations the survey examines, the Silent Generation and Baby Boomers, are believed to have an estimated $100 trillion in wealth. They represent just 25% of the population but hold 65% of the wealth.
- When members of the oldest generations pass away, it is estimated that they will leave $18 trillion to charity. The bulk of their estates ($105 trillion) will go to younger generations, especially Millenials, further fueling their charitable giving capacity.
- The report notes there is a strong correlation between volunteering and giving, though many gifts from today’s volunteers may be far in the future. The report recommends development officials work closely with other areas of their organizations to ensure positive volunteer engagement and good tracking of volunteer data, such as hours donated and gifts.
Planned giving departments may wish to focus on promoting bequests and other deferred giving options, like beneficiary designations, to younger female donors as gifts that cost them nothing now but will make an impact later.
