The next four decades will witness an extraordinary “generational wealth transfer.” Research from Boston College tells us that a conservative estimate of $48 trillion will move from one generation to the next by 2061 (originally published in 1999 and updated in 2014).
The impact on the nonprofit sector will be enormous. The transfer is estimated to include more than $20 trillion for charity. This cash infusion to an already robust sector will significantly increase opportunities to make the planet a safer and better place for our citizens.
These funds will move into nonprofit organizations from donors all income levels, not just America’s wealthiest individuals. In fact, the fastest growing sector in philanthropy is small family foundations, many with assets under $1 million. In 2012, $320 billion was held in assets by 41,ooo+ family foundations operating in America today.
These donors and prospects live in every state in our nation, from rural communities to large cities. They are sitting in your lobby, visiting your organization, volunteering for your nonprofit and, often, already providing contributions to support your work.
They deserve your attention today.
Sources: A Golden Age of Philanthropy Still Beckons: National Wealth Transfer and Potential for Philanthropy Technical Report, by John J. Havens Paul G. Schervish, Center on Wealth and Philanthropy Boston CollegeReleased May 28, 2014. Download here.
Foundation Stats, Foundation Center, 2012. Download here.
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