For years, experts have talked about the coming “Great Wealth Transfer”—the massive movement of wealth expected to pass from baby boomers to younger generations over the next two decades.  

Here are the nuanced trends to watch for to determine whether that transfer is underway: 

• More donors are engaging in estate and legacy planning conversations that include charitable gifts. 
• Larger gifts involving appreciated assets, donor advised funds and planned giving vehicles are becoming more common. 
• Families are involving children and grandchildren in philanthropic decisions earlier than in previous generations. 

Accordingly, in your donor development efforts, now is the time to focus on: 

• Planned giving, including estate gifts and beneficiary designations 
• Gifts from donor advised funds 
• Gifts of complex, noncash assets  
• Multigenerational and family philanthropy engagement  

Here are three examples of how the North Carolina Community Foundation can support your organization as wealth changes hands: 

• Our team can help your organization build long-term financial stability by administering an agency fund for your organization. An agency fund is a permanent endowment created exclusively for nonprofits that is invested for long-term growth and provides an ongoing source of income. NCCF can help your organization fulfill your vision now and in the future.
• Many donors hold significant wealth in non-cash assets such as appreciated stock, real estate, closely held business interests, retirement assets and other non-cash property. The team at NCCF can help you facilitate these gifts by accepting, liquidating and administering assets for your agency fund that your organization may not be equipped to handle directly. 
• Our team can offer insights to help strengthen your organization’s planned giving efforts. Please reach out to learn about upcoming education and capacity-building opportunities.  

Much of the Great Wealth Transfer is in its early stages. Baby boomers still control a great deal of U.S. wealth, meaning a significant portion of charitable transfer activity may accelerate over the next 10 to 20 years as estates settle and intergenerational planning matures.

We will be here when you need us to offer guidance!  

This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.