As baby boomers are moving on and letting their heirs take over, all eyes are on their investment behavior. Where does philanthropy fall in the millennials’ strategy and is the healthcare fundraising community ready to cultivate the new generation of donors?
Millennials (aged 32 and under) compose the growing generation in American history—approximately 20 million larger than the baby boomer generation. Accenture has estimated that over the next several decades, baby boomers will pass $30 trillion in financial and non-financial assets to their successors. The peak is expected between 2031 and 2045, during which 10 percent of total wealth in the United States will transfer from one owner to the other every five years.
Where will these assets go?
A 2013 U.S. Trust report found that millennials are skeptical of stock market investments, and half (51 percent) of high-net-worth millennials fear that they will lose money by investing in traditional equity securities. Nearly two-thirds (64 percent) of high-net-worth millennials said that they were more comfortable investing in physical assets than stocks. Despite their skepticism about stock markets, they are willing to accept a higher risk profile or receive lower returns to invest in companies and causes that create positive social or environmental impact.
In another study, Spectrem Group found that 45 percent of wealthy millennials want to use their wealth to help others and consider social responsibility a factor when making investment decisions.
Although the above studies show that millenials have a strong predisposition to give and create social impact, fundraisers in health care need to prepare to cultivate and engage fresh generation of donors. The good news is that millennials are generally more interested than the Gen X, Baby Boomer, and WWII generations in learning how to apply their wealth to help others.
How are you looking to engage millenials?
The bottom line is that the new generation of potential donors is said to accelerate impact investing, directing billions of dollars toward social benefit and the fundraising community should get ready for that.
About the Campbell & Company Healthcare Practice
The Campbell & Company Healthcare Team are experts in healthcare philanthropy and staff management. We understand the context in which healthcare organizations operate, and create a structure and process within that context, tailored to your community, that allows philanthropy to grow. For 37 years, we have helped hundreds of healthcare institutions succeed in growing and sustaining their programs.
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