The Great Wealth Transfer: Will Wishes Really Come True?

For years, experts have talked about the coming “Great Wealth Transfer”—the massive movement of wealth expected to pass from Baby Boomers to younger generations over the next two decades. 
But are you seeing it at your organization? You probably are, even if the phenomenon is not manifesting as an immediate wave of large cash gifts! Here are the nuanced trends to watch for evidence that the transfer is underway:

• More donors are engaging in estate and legacy planning conversations that include charitable gifts.
• Larger gifts involving appreciated assets, donor-advised funds, and planned giving vehicles are becoming more common.
• Families are increasingly involving children and grandchildren in philanthropic decisions earlier than in previous generations.
  
  

Accordingly, in your donor development efforts, now is the time to focus on:

• Planned giving, including estate gifts and beneficiary designations
• Gifts from donor-advised funds
• Gifts of complex, noncash assets 
• Multigenerational and family philanthropy engagement 
  
  

Here are three examples of how the Community Foundation can support your organization as wealth changes hands:

• Our team can help your organization build long-term financial stability by housing and administering your endowment or reserve fund. The Community Foundation’s ongoing professional investment management and back office services can help you create permanent charitable resources designed to support your mission for generations to come.
• Many donors involved in the Great Wealth Transfer hold significant wealth in noncash assets such as appreciated stock, real estate, closely held business interests, retirement assets, cryptocurrency, collectibles, and other complex property. The Community Foundation can help you facilitate these gifts by accepting, liquidating, and administering assets that your organization may not be equipped to handle directly.
• The team at the Community Foundation is happy to offer insights to help strengthen your organization’s planned giving efforts. Please reach out to learn about upcoming technical assistance, education, and capacity-building opportunities. 
  
  

Finally, keep in mind that much of the Great Wealth Transfer is still in its relatively early stages. Baby Boomers still control a great deal of U.S. wealth, meaning a significant portion of charitable transfer activity may accelerate over the next 10–20 years as estates settle and intergenerational planning matures. We look forward to working together in the coming decades!