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WEALTH TRANSFER AND
FAMILY PHILANTHROPY WHAT ARE THE IMPLICATIONS FOR NONPROFITS? 3. GET INTRODUCED TO THE KIDS
In general, older donors are not going to be around forever. That’s always been the Hey, they are likely at least in their 30s, not really “kids” but you know what we’re
case. And older donors have typically passed their money to their children. saying. Their interests may be completely different than their parents, but if you can
get to know them, you can at least learn what motivates them, what they are focusing
It’s the magnitude that is different now. This sea change provides both an opportunity on, and how much they wish to continue any giving. If they aren’t directly interested
and a challenge to nonprofits for their fundraising teams. in your mission in terms of ongoing involvement for years to come, perhaps they will
There is no guarantee that their children - whether they are wealthy or not! - will have make a transformational gift to you in honor of their parents. They might move on
the same interests that they do. That’s the way of the world. after that, but a large gift, especially associated with a naming opportunity, would be
a great way to honor their family.
However, fundraisers and other nonprofit leaders would be well-served to keep these
4 principles in mind when thinking about and planning for this wealth transfer. 4. ENGAGE THE KIDS - MORE THINGS TO THINK ABOUT
1. ALWAYS BE DONOR-CENTRIC Do this with the parents blessing and, sometimes, help. Find out what their interests
are. Do they care about the arts, the environment, medical science, etc. like their
If you’re reading this, you are probably already familiar with at least the basics of parents do, or do they have other passions. You won’t always be able to keep the
best practices in fundraising, but it’s always nice to have a refresher. Donor-centric relationship going, but interests can develop based on family history and based,
fundraising means that you build your relationship with the donor around what frankly, on you and your passion for the importance of your mission.
is important to them. If they are supporting your community center, museum,
environmental justice organization, racial justice cause…you name it…do your So how do you engage them? Invite them to your development committee or your
darnedest to understand why. Build a genuine relationship based on an interest in campaign committee, perhaps to your board once you’ve gotten to know each other
who your donor is as a person and what motivates them. Focus on their impact and (no rush here). Invite them to events, seek their advice.
W e’re in an era with a lot of wealth transferring going on. What does that how together you are making the world a better place. This is the antidote to “arm
mean? twisting” or transactional fundraising. Here’s the thing: If you can interest the children in your work - just one of them,
probably not good to have the whole clan on your committee! - it will not only help you,
That means that older people with money are passing it to their adult children 2. GET TO KNOW THE PARENTS but often it is a huge relief and favor for the parents who might be struggling to figure
both while they are alive and through trust and estate planning. out how to introduce their kids to the importance and pleasure of philanthropy.
I always think of the parents (the baby boomers) in a family that donates as the key to
HOW MUCH IS A LOT? the relationship and to giving. This is the case unless they have become incapacitated To wrap up, if you keep relationship building at the forefront of your thinking about
It’s estimated that there are 73 million baby boomers in America, the youngest in some way by age and/or health, at which point getting to know the kids (see below) fundraising, the possibilities are limitless. You will find that the work is more rewarding,
and it can potentially help you to successfully ride the wave of wealth transfer that is
being 59 years old now and the oldest almost 80. In the next 10 years it is also is even more important. The parents are the people you probably have the primary happening right now.
estimated that whether dead or alive, these boomers will transfer to millennial relationship with right now. Keep that strong. Seek their advice on how to engage
and Get X heirs $16 trillion, and there will be more in the years that follow. their kids - this is crucial. PETER HELLER
Yes, that’s right, $16 trillion!! FOUNDER
HELLER FUNDRAISING GROUP
