When it comes to planned giving, conventional wisdom often tells us to focus on senior donors—those who are over 65 and perhaps more settled in their finances. But is this approach outdated? Are we missing out on significant opportunities by not engaging younger donors in planned giving conversations? Let’s explore this question in depth.
Are We Wasting Time Pursuing Planned Gifts with Younger Donors?
The Traditional Focus on Senior Donors
Historically, planned gifts have been the domain of older donors. This demographic has had more time to accumulate wealth and typically starts thinking about estate planning as they approach retirement. Organizations have long targeted donors over 65 for these reasons, assuming that younger donors are either not interested or not financially prepared to make such commitments.
Why Younger Donors Should be Part of the Conversation
But times are changing, and so should our approach. Here’s why younger donors are worth discussing planned gifts with:
- Long-term Relationships
Engaging younger donors in planned giving conversations can lead to lasting relationships. These individuals may not have significant assets now, but fostering a relationship early ensures that your organization stays top-of-mind as they grow their wealth.
- Changing Attitudes Toward Philanthropy
Younger generations—Millennials and Gen X—are showing an increasing interest in philanthropy. A 2018 study by the Case Foundation found that 84% of Millennials made charitable donations, and 52% said they would be interested in making a planned gift. This signals a shift in how younger people view their role in supporting causes they care about.
- Financial Planning Starts Early
Today, financial planning often begins at a much younger age. With the rise of financial literacy programs and tools, many people in their 30s and 40s are already considering their long-term financial goals, including charitable giving.
Real-life Stories and Testimonials
Consider the story of Emma, a 45-year-old tech entrepreneur who started her estate planning early. She was approached by a nonprofit she supported and was delighted to discuss how she could contribute through a planned gift. “I appreciated that they saw me as a partner in their mission, not just a donor,” Emma says. Her planned gift has now become one of the organization’s most significant future contributions.
Statistics to Consider
- Long-term Value:
According to a report by Giving USA, planned gifts from younger donors could represent a substantial portion of future philanthropy. Engaging them now can ensure your organization benefits in the long run.
- Interest in Philanthropy:
A study by U.S. Trust noted that 67% of Millennials are interested in discussing planned giving as part of their financial planning.
Overcoming Common Objections
“They Don’t Have Enough Wealth Yet”
While it’s true that younger donors may not have accumulated significant wealth, discussing planned gifts is about planting seeds. It’s about making them aware of the options available and how they can contribute meaningfully over time.
“They’re Not Thinking About Estate Planning”
In today’s fast-paced world, younger generations are more proactive about financial planning. Many are open to learning about different ways to support causes they care about, including through planned giving.
How to Start the Conversation
Educate and Inform
Provide resources that help younger donors understand what planned giving is and how it can benefit both them and your organization. Use blogs, webinars, and one-on-one meetings to share this information.
Highlight Flexibility
Make it clear that planned gifts can be tailored to fit their current financial situation and can be adjusted as circumstances change.
Offer Incentives
Consider offering recognition or benefits that make the idea of planned giving more appealing to younger donors. This could include exclusive events, insider updates, or naming opportunities.
Conclusion
Are younger donors worth discussing planned gifts with? Absolutely. By engaging donors under 65 in planned giving conversations, you’re not just securing future contributions—you’re building lasting relationships and fostering a culture of philanthropy that will benefit your organization for years to come.