How can nonprofits prepare for the biggest shift in philanthropy in our lifetime?
The numbers are staggering: over $124 trillion is expected to change hands by 2048. It’s the largest transfer of wealth in human history – and it’s already underway. For fundraisers, this is a once-in-a-generation opportunity. But it’s also a wake-up call: the strategies that worked yesterday won’t necessarily work tomorrow.
Here, we’ll break down what the Great Wealth Transfer really means, why it matters so much for fundraising, and how your organization can adapt to meet this moment with clarity, purpose, and success.
What Is the Great Wealth Transfer?
The “Great Wealth Transfer” refers to the movement of assets – cash, stocks, real estate, businesses – from the Baby Boomer generation (born 1946–1964) to Gen X (born 1965–1980) and Millennials (born 1981–1996).
If you didn’t already know, the Baby Boomer generation currently holds over half of U.S. wealth. As they age and plan their estates, that wealth will move to younger generations, dramatically altering the financial and philanthropic landscape.
Key facts to know:
- About $105 trillion will go directly to heirs.
- Around $12 trillion is expected to be donated to charities and nonprofits through bequests and estate gifts.
- Over 50% of the total transfer is expected to come from high-net-worth and ultra-high-net-worth individuals, representing only 2% of all households.
But know that this isn’t just about big numbers. It’s about a profound shift in how people view money, responsibility, and giving.
Why the Great Wealth Transfer Matters for Fundraisers
At first glance, it might seem simple: more wealth = more philanthropy. But it’s a little more complicated than that.
We know that younger donors give differently. Millennials and Gen Z are far more motivated by impact, transparency, and social justice. They prioritize causes over institutions. They expect regular, personalized communication – not just annual appeals. They want to see how their money makes a tangible difference.
Trust in nonprofits is often lower among younger generations. Studies show that Gen Z and Millennials are more skeptical of traditional organizations; they do deep research before giving and value authenticity over polish.
Planned giving will also need a serious makeover. Historically, planned giving has focused on Baby Boomers through wills, trusts, and estate planning seminars. But younger generations are building wealth earlier through startups, investments, and real estate, and they’re more comfortable with donor-advised funds (DAFs), crypto, and other modern tools for philanthropy.
Simply put: the organizations that adapt now will build relationships that last for decades. Those that don’t may see their donor bases shrink as Boomers age out.
How Fundraisers Can Prepare for the Great Wealth Transfer
Here’s the good news: there’s no need to overhaul everything overnight! But you do need to be intentional about building your fundraising strategy for this new era.
1. Make Planned Giving a Core Strategy (Not a Side Project)
Planned giving can no longer be siloed into a small program or occasional seminar. It should be integrated into your donor communications year-round. Highlight stories of donors who have made legacy gifts. Create easy pathways for younger donors to explore estate giving, DAFs, and other long-term vehicles.
Use clear, modern language, and skip the legal jargon. Think “Build your legacy for future generations” instead of “Create a charitable remainder annuity trust.”
2. Rethink Donor Stewardship for Younger Generations
Millennials and Gen Z expect more than a thank-you letter once a year. They want impact updates, real transparency, and a genuine sense of community. Focus on storytelling that connects their gifts to measurable outcomes. Offer behind-the-scenes looks at your work through videos, Instagram Lives, or small group briefings.
Ensure you’re thinking through various donor “journeys” that nurture deeper involvement across generational preferences, whether it’s a first-time gift or a major commitment.
3. Be Ready for New Types of Gifts
Younger generations are more likely to give through nontraditional assets: stock gifts, crypto, real estate, donor-advised funds, and business interests. Make sure your gift acceptance policies are up to date and that your team can confidently discuss these giving options.
Add a simple, donor-friendly page to your website explaining all the ways people can give – especially assets beyond cash. Consider partnering with an organization like FreeWill that will help you maximize your smart giving strategy.
4. Center Equity and Social Impact
Millennials and Gen Z view giving through the lens of justice and equity. If your organization hasn’t yet clearly articulated your values around diversity, equity, and inclusion – or shown how your work advances systemic change – you risk being left behind.
This isn’t just about messaging. It’s about living your values authentically in how you operate, hire, and communicate.
5. Build Multi-Generational Relationships
Don’t just focus on your current donors – engage their children and even their grandchildren. Host family-centered stewardship events. Invite younger generations into conversations about legacy planning and impact giving earlier rather than later.
For example, if a longtime donor has adult children, consider hosting a “next generation” giving conversation or inviting them to a planned giving briefing.
A New Kind of Giving
The Great Wealth Transfer is already reshaping the world around us – and the future of philanthropy will belong to organizations that embrace change, invest in relationships, and center donors’ evolving expectations. It’s not about chasing the money from these younger generations. It’s about building trust, delivering real impact, and inviting people into a shared vision for the future.
Your next generation of donors is already here. Are you ready to meet them where they are – and walk with them toward what’s possible? Set up a call with us to talk through how you can maximize your fundraising strategies now and for the future.