Article submitted by Ana Gozalo F.EdPlus Development Manager, University of Adelaide
The philanthropic landscape is about to experience a monumental shift. According to Altrata’s Family Wealth Transfer 2024 report, approximately 1.2 million wealthy individuals will transfer nearly $31 trillion in the next decade. This massive wealth transfer presents opportunities and challenges for Fundraising professionals.
Key Implications for Fundraising
1. Primary Beneficiaries: Generation X, currently midto- late 40s, will be the main recipients. This group differs from their predecessors in values, experiences, and aspirations. Understanding these generational dynamics is crucial for succession planning and engagement strategies.
2. Generational Dynamics: Differences in values and aspirations between wealth founders and their younger beneficiaries require involving younger family members in succession planning to ensure the transfer of both wealth and values.
3. Lifetime Transfers: Increasingly, wealth is being passed on during the wealth holder’s lifetime, requiring earlier engagement of potential heirs to
avoid conflicts over family wealth distribution.
Gen X Fundraising Trends, Preferences, Patterns
Much research has focused on giving patterns of Baby Boomers and Millennials, with Generation X (1965–1980) often being overlooked. Interestingly, Gen X will be the primary recipients of this anticipated transfer of wealth.
According to the Blackbaud Next Generation Report, many Gen X donors see giving as part of their identity and are intentional about the organisations they support. Characterised by pragmatism and independence, they prefer to support causes that directly impact their communities – environmentally, educationally, and concerning children’s welfare. Schools and universities particularly resonate with this generation.
Gen X donors are comfortable with online and offline giving; however, prefer making online donations. Survey respondents preferred receiving donation receipts by email (42%) and expected an immediate receipt after making their gift (36%).
The biggest reasons they discontinue their support is if they feel their money was not spent wisely or if they had a bad experience with the institution.
Conclusion
Early engagement with Generation X is vital to securing intergenerational legacy gifts. Building a partnership that enriches a donor’s family, and the organisation, will lead to more committed, passionate involvement from all family members.
Understanding Generation X allows us to better align our strategies to engage and inspire a new generation of philanthropists. Developing personal connections with donors requires intentionality. Building trust and loyalty takes time and effort. Demonstrating the impact that fundraising has in our communities and building a great donor experience before, during, and after a gift is critical.
Today, it is more important than ever for educational institutions to invest in philanthropy to forge those crucial connections and recoup the benefits of effective donor engagement across multiple generations in our communities.
Happy Fundraising!
Ana Gozalo F.EdPlus
Development Manager
University of Adelaide
Key Takeaways:
- Understand Gen X givers
- Shift in transfer to during wealth holders’ lifetimes
- Immediately acknowledge and receipt gifts
- Evidence funds spent wisely
- Forge Gen X connections as key to multi-generational engagement
Sources:
- Altrata, Family Wealth Transfer 2024 report, 2024
- The Blackbaud Institute, Next Generation of American Giving study, 2018
- Qgiv’s Generational Giving Report.
