Cultivating the Next Generation of Wealth
We are in the midst of a tsunami of wealth transfer. It is predicted that over the next 50 years, anywhere between 20 and 40 trillion dollars of wealth will pass from parents to their children. This year the federal estate tax exemption is nearly $5.5 million dollars, or roughly $11 million if two parents are leaving funds to a child. To look at it another way, 10% of wealth is changing hands every five years. Millennials are inheriting their wealth at a rate faster than their parents or their grandparents; one third of millionaires under the age of 32 inherited their money. As fundraisers, what are we doing to engage this next generation of wealth? Changing the Way We Cultivate the Donor Pipeline Historically, when did we begin to engage with children of means? Alumni might connect with their alma mater when their children are beginning the admission process. We might approach them when we’re looking to fill a board seat or leadership volunteer role. However, this is usually years after they graduated, a period during which these potential young philanthropists have already established their philanthropic priorities—and you may not be among them. We know that Millennials think about their charitable giving […]
