ARTICLE
Get Your Share Of $84 Trillion
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Updated - 04/03/2025
A tsunami is on the way. But this one is a good one — and historically unprecedented. An epic tidal wave of $84 trillion will pass hands from the Baby Boomer (and Silent) Generations by 2045. There are only three places where dollars can go — loved ones, government, or charity.
Let’s start by trying to fathom that Herculean number of $84 trillion. Visualize a paltry $1 billion. Then imagine 10,000 pallets, each stacked with $100 million in $100 bills. Even then, a man standing next to it looks small. Alternatively, one trillion dollars would stretch nearly from the earth to the sun, and it would take a military jet flying at the speed of sound 14 years to reel out one trillion dollar bills. Of course, you have to multiply all that by 84.
The best time for nonprofits to stop preparing for this historic wealth transfer is yesterday; the second-best time is now.
The stark reality is that too many nonprofits don’t place enough emphasis on planned giving in general because they can’t see the immediate returns. Put the $84 trillion aside, during all times, typical donors can make gifts several times larger from their estates than their current wealth positions. When you study the largest endowments on the planet most are the result of legacy gifts.
Nonprofits of all sizes, missions and parts of the country can and should take concrete steps to position themselves for the opportunities presented by the $84 trillion wealth transfer.
Here are 10 strategies, tactics and best practices to prepare for an $84 trillion wealth transfer
- Establish planned giving infrastructure: Make planned giving visible on your website, marketing material, and during conversations with donors and prospective donors.
- Estate gifts really aren’t that complicated: More than 90% fall into three basic categories: (a) charitable bequests, (b) retirement plans and (c) life insurance policies. Emphasize to donors that all three options empower them to amplify the impact of annual gifts while postponing any out-of-pocket expenditure. For capital campaigns and major gifts bring up the exciting possibilities of blended gifts mixing current and deferred components. Rule of thumb: People prioritize in their estate plans what they emphasized during their lives.
- Facilitate estate planning conversations: Only about one-third of Americans have wills. This even includes affluent individuals. It’s just human nature to delay and put off this essential common-sense exercise. Host free workshops and other educational initiatives that emphasize that estate planning doesn’t have to be expensive, time consuming, and only for the very wealthy. Be disciplined and hold back from aggressively pitching that your organizations are designated as beneficiaries. There are plenty of legal and financial authorities who are more than willing to share their expertise such as the passing of wealth in the most tax savvy ways.
- Create and nurture planned giving societies: These donors deserve to be treated like heroes. Consider lapel pins, recognizing them at special gatherings and publicizing their personal stories. This will help reinforce that people from all different socio-economic backgrounds can make gifts from their estates.
- Establish intergenerational relationships with donors: Inform them of the results and impact of the gifts being made by their parents and grandparents. Recognize that there can be obvious tensions. I’ve been in too many meetings where family elders excitedly announce gifts they are making and have witnessed the suspicious expressions of heirs. Engage family members early in the gifting continuum. Start now by recruiting Next Gen representatives for boards, committees, and important assignments.
- Understand different values and motivations of generations: Generation Z and Millennials are becoming increasingly interested in donating to basic needs. Giving to education is becoming less popular with each younger generation. Younger donors also favor environmental and social justice issues more than older donors.
- Recognize different communication, platforms, and media preferences: We’ve already vividly learned that younger donors participate in collaborative online exchanges with organizations, learn about and advocate for causes on social media, and turn to online resources to access information on nonprofits, giving vehicles, and impact results.
- Cherchez La Femme: Before the intergenerational transfer there will be a profound intragenerational transfer. Women are projected to control two-thirds of U.S. wealth by 2030 and are already exerting significant influence over charitable decisions. It is a fool’s game to give spouses and other females a secondary role in philanthropic conversations. Research repeatedly indicates that they are the more generous gender.
- Board and management must lead by example: This is crucial! If those leading the nonprofit aren’t making these precious commitments, they will fail to have credibility in asking those outside the inner circle to do so.
- Through every communications channel ask if current donors and supporters have included the nonprofit in their estate plans: All too many times organizations are surprised and caught completely off guard by substantial bequests, often made by those living modest lifestyles. This is the equivalent of low-hanging fruit.
From a big picture perspective, generosity and planning go hand-in-hand. Harris Poll reveals that adults who include charitable giving in their annual budget donate nearly three times more, on average, than those who donate money but did not budget for it. The essential role of planned giving in philanthropy is nothing new. Smart nonprofits have prioritized this high value commitment for generations. But with the $84 trillion wealth transfer on the horizon all nonprofits seeking to develop and sustain resources so that they can more effectively champion their noble missions must put the pedal to the metal and position themselves for awesome opportunities and growth.
How is your organization preparing for the $84 trillion wealth transfer? Let us know in the comments.
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