Why Planned Gifts Are Vital to Nonprofits: The Impending Wealth Transfer from Baby Boomers.

As the Baby Boomer generation ages, the nonprofit sector is on the brink of one of the largest wealth transfers in history. With Baby Boomers holding an estimated $90 trillion in assets, the impact on future charitable giving cannot be overstated. However, without a will or trust in place, much of this wealth will simply pass to heirs, bypassing the potential to make a significant charitable impact.

The Disappearing Population and the Urgency for Planned Giving

The reality is that Baby Boomers are leaving us. This demographic shift means that nonprofits must act quickly to establish robust planned giving programs. Why? Because 88% of all large charitable gifts come from individuals over the age of 70. Without a strategic approach to securing these legacy gifts, nonprofits risk missing out on a vital source of funding that could sustain their missions for years to come.

The Consequences of Inaction

For nonprofits, the absence of a will, trust, or legacy gift program can lead to a world of trouble. As the population of older, wealthy donors diminishes, organizations that fail to engage these individuals in planned giving conversations will find themselves struggling to secure the resources needed to thrive. This isn’t just about lost opportunities—it’s about the survival and longevity of the nonprofit itself.

Take Action: Establishing a Legacy Gift Program

To ensure your organization is positioned to benefit from this unprecedented wealth transfer, it’s crucial to have a well-defined legacy gift program in place. This involves not only educating your donors about the importance of including your nonprofit in their estate plans but also providing them with the tools and resources to do so.

Consider partnering with experts who can help guide your organization through this process. The Nonprofit Trust Company specializes in building and managing trusts that secure long-term financial support for nonprofits. Additionally, services like Wealth Screening Companies can help identify potential donors most likely to leave a legacy gift, allowing you to target your efforts more effectively.

Conclusion: Don’t Miss the Opportunity

The upcoming wealth transfer from Baby Boomers presents a once-in-a-generation opportunity for nonprofits to secure the funding needed to carry out their missions well into the future. By establishing a planned giving program, you can ensure your organization doesn’t miss out on this critical source of support. Take action now to engage your donors and secure their legacy.