A recent study has revealed that baby boomers will donate nearly $7 trillion in cash over the next two decades. If you add the $1 trillion-plus they will contribute in volunteer work, it becomes quite a sum. The study, which was conducted by Merril Lynch Global Wealth Management and Age Wave, determined that the baby boomer generation is about fifty percent more likely to do research on a prospective charity prior to donating compared to their parents’ generation. In fact, 44 percent of all baby boomers want to have a direct say in how their contribution is used. This is markedly higher than the fifteen percent of the prior generation.
It has long been known that men and women tend to give more come retirement. If you factor in long life spans, non-profits are primed to rake in a lot of donations in the near future.
Dr. Dychtwald, founder of Age Wave, notes that this is good news for non-profits, but these organizations will have to adapt to the times. Baby boomers, much more than any previous generation, want to do much more than write a check. They are hoping to “get back from their contribution” in some way.
Dychtwald also points out that these non-profits will be competing for these trillions of dollars, but the smartest organizations will work to attract retirees as volunteers. Data show that retirees tend to volunteer less often than others, but they spend more hours contributing once they do decide to volunteer. Furthermore, retirees have a wealth of knowledge as they have decades of experience professional experience across sectors. Non-profits should welcome this know-how and experience with open arms providing an outlet for these retirees to remain engaged while contributing to a cause for which they are passionate.
The Age Wave study also discovered a few other interesting giving trends. It appears that women are more likely to contribute their money and time to non-profits. Additionally, baby boomers are contributing much less to religious organizations compared to their parents.