Merrill Lynch Global Wealth Management and Age Wave partnered to conduct a study recently. They discovered the baby boomer generation is expected to donate upwards of $8 billion over the next two decades, $1.4 billion of which comes in the form of volunteer services.
It is common knowledge that most people tend to give more and more often once they hit retirement age. With extended life spans and, thus, longer spans of retirement charitable giving is expected to continue this upward trajectory for the foreseeable future.
Non profits are primed to take advantage of this increased giving according to Ken Dychtwald of Age Wave. Wage also noted that the baby boomers are about fifty percent more likely, compared to the previous generation, to try to find out how far their dollar goes in a prospective charity. Additionally, the baby boomer generation is three times more likely to want direct control of how their charitable donation is to be used.
Non-profits will have to evolve to fit satisfy this new breed of donors. The supply of donations will be massive, but it will be markedly different according to Dr. Dychtwald. The new generation of retirees want to do more than write a check, they want want to have a real impact on the world.
Pamela Wise from Merril Lynch notes that non profits should keep in mind that many of these retirees were once highly successful professionals with a vast array of experience and skills. Retirees may be less likely to volunteer than other age groups, but they commit a higher level of hours when they do commit to volunteering.
The study also found that baby boomers are much less likely to give to religious organization compared to their parents’ generation. The study also discover that retired women are much more likely donate and volunteer compared to their male counterparts.