As fundraising organizations and leaders within these organizations, many of us see Legacy Giving as something we wish we could devote more time to. Legacy Giving has been one of the most discussed areas of fundraising during the pandemic as it has amplified the importance of having a will and brought the discussion about legacy to the forefront. This provides fundraisers with the opportunity to have meaningful conversations with donors about what is important to them and how a legacy could be created to support their interest.
Another factor that makes this an opportune time to consider developing Legacy Giving is that, over the next decade, the largest intergenerational transfer of wealth, through inheritance, will take place. Couple that with the fact that Canada’s population is aging and their net worth is projected to grow significantly over the same timeframe.
According to Statistics Canada’s Survey of Financial Security, approximately one-third of Canadian families have received some form of financial inheritance, which to date totals $576 billion. By 2026, this inheritance is expected to top $1 trillion. This transfer of wealth marks a very significant point in Canadian history – a point in time that provides not-for-profit organizations with a unique window of opportunity to begin or continue a dialogue with donors about legacy gifts and the impact they can have on generations to come.
The expected transfer of wealth is made up of two demographic groups, Baby Boomers (born from 1946 – 1964) and the Silent Generation (born from 1928 – 1945). These two groups make up over 35% of the Canadian population. Leaving a legacy is important to many individuals in these two demographic groups, whether it is a gift to family, a gift to benefit the community or both. A critical difference in the transfer of wealth that will occur over the next ten years is that a large amount of the transfer will be given in a person’s lifetime, as there is a growing desire to see how loved ones benefit from the act of generosity.
It is anticipated that Gen X (born from 1965 to 1980) and Millennials (born from 1981 – 1996) will inherit 40% of the wealth transfer. These two demographic groups will demand a different approach relative to charitable giving conversations than Boomers or the Silent Generation. Donations from Gen X and Millennials are typically made through annual or monthly donations but, for many in these two demographic groups, charitable giving hasn’t been a priority as the bulk of their income has been depleted by the basic costs of living – mortgage payment, rent, childcare, food, utilities. A gift from their parents or grandparents will ease this burden and won’t be top of mind for charitable giving.
A recent study by the Canadian Association of Gift Planners (CAGP) found that many Canadians considering bequests think of them in terms of “either/or” and not both. As we in the charitable sector know, many Boomers want to see the impact of their legacy during their lifetime. This provides us with the opportunity to speak to donors in these groups about blended gifts – a gift that a donor can see realized in their lifetime and a bequest to assist in the future.
At the very minimum, our organizations need to look at developing the appropriate messaging to address each of the four demographic groups outlined above and then determine the best communication strategies to share the messaging.
Let us consider this moment in time as a very loud knock on the door of our not-for-profit organizations. Be prepared to answer it with a plan to develop or enhance a legacy giving program with an opportunity for individuals to invest in current and future initiatives that align with their core values and beliefs.
The Dennis Group Inc. can help your organization develop a legacy giving program, contact us for a consultation.
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