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Dear “Boom” Colleague,
Baby
Boomers have caused upheaval ever since their arrival in 1946. Schools
scrambled to accommodate them; they set the tone for marketing and
politics; and now they are influencing the retirement arena. Social
profits and providers of community service need to get ready for
the next Boomer burst of possibilities and opportunities.
Click on the titles at the right to learn more about…
Boomer Characteristics
Boomers and Wealth Transfer
Six
Boomer Trends That Will Impact Your Organization
Do
you have questions about Baby Boomers and your program? Contact
us through LEADline@CampaignConsultation.com
for more information. You can still access previous issues of On-the-Go
eTA by clicking on the title at the right.
Boomer
Characteristics
The
sheer numbers of individuals falling into the Boomer generation
have influenced our culture for the last sixty-two years. Beliefs
and behaviors carried by Boomers will continue to influence our
communities for at least another twenty years.
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Demographics:
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Beliefs
& Behaviors: |
- Baby Boomers were born between 1946 and 1964
and range from 44 to 62 years of age in 2008.
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- Boomers believe 60 is the new 40
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- 3.4
million babies were born in 1946 and over 77 million babies
had been born by December 31, 1964.
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- Want
to make a difference, leave a legacy
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- More
than 10,000 boomers will turn 50 each day, and roughly 7,900
boomers will turn 60.
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- Value
individuality and social responsibility in both their philanthropic
giving and investments more than previous generations
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- Boomers
who are 50 and above control 60% of the nation’s wealth.
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- More
likely to practice engaged philanthropy, they want to know
what they are supporting and will interact through research,
relationship and real interface with social profits
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- Also
known as the sandwich generation, Boomers have “a
lot on their plates” with careers, responsibilities
for aging parents and care of their own children.
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- View
service as both an experience as well as a commodity, and
will go where they get the biggest “return”
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-
Boomer women fall into in different niches and respond to
different messages — i.e. “True” Boomers
(1946 – 1956) may respond differently from “Shadow”
Boomers (1957 – 1964).
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- Many
middle-age Boomers seek out and respond to the mission first
and then connect up and use as a platform to connect to
others. The reverse is true for past generations who often
sought out “community” first and then were drawn
to the mission … this impetus to serve may change
as Boomers age.
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- The
census Bureau’s most recent reports state that the
number of women-owned businesses grew by 20% from 1997 –
2002.
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- Want
to know precisely how the money they donate is spent
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- 48%
of Boomers aged 51-59 still have 1 child at home. 64% of
Boomers younger than 51 have 1 child at home.
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- Want
flexibility and having a variety of choices and options.
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- 68%
of workers between the ages of 50 and 70 expect to work
into retirement years
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- Request
clarity of request for tasks, time commitments, and other
support.
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- Live
a healthier, more “fit” lifestyle than previous
generations
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- Want
volunteering and community service to be a meaningful experience.
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- Boomers
are internet savvy … as of 2004, 82% of boomers between
the ages of 38 and 56 were online
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- Respond
to convenience in giving and service.
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Boomers
and Wealth Transfer
By
2052, the transfer of wealth to and from Boomers is estimated to
be more than $41 TRILLION. Unprecedented wealth in time, talent,
and dollars can become available to social profits as Boomers and
their children age and mature.
The World War II generation is expected to transfer at least $10.4
trillion to Baby Boomers over the next few years. Financial experts
project that nonprofit organizations could receive as little as
$6 trillion and as much as $24.6 trillion from Baby Boomers by 2052.
The transfer of wealth will come from both millionaire and distinctly
non-millionaire households. 7% of the families leaving an inheritance
will be from estates of more than $1 million in assets. These assets
represent two-thirds of the estimated total funds allocated for
inheritance from 1998 – 2052. 93% of families leaving an inheritance
will be from estates of less than $1 million in assets. These assets
represent one-third of the estimated total funds allocated for inheritance.
Wealth Transfer Impacts…
- Baby
Boomers—
Children of the World War II generation are the most significantly
affected group benefiting from the coming transfer of wealth,
or “sudden money events” in these ways:
- Inheritance from their parents’ estates. It is estimated
that $10 trillion will be bequeathed.
- Access to retirement funds
- Sale of businesses, property, and other assets
- Other
- The
Social Profit/Nonprofit sector—
Financial experts project that nonprofit organizations could receive
as much as $24.6 trillion from Baby Boomers by 2052 through the
following methods:
- Direct transfers from the estates of the World War II generation
upon their deaths
- Living legacy gifts from the inheritances Baby Boomers can
request and donate to a favorite cause before their parents’
death
- Direct transfers or donations from Baby Boomers themselves
Boomers who are already in your organization as modest donors
or volunteers are a ready source to cultivate for greater levels
of support. They reflect more than $24 trillion…reasons
to win their trust and commitment to fulfill social profit missions
now!
6
Boomer Trends That Will Impact Your Organization
Boomers,
the flower children of the 60’s, arrived in a whirlwind of
commitment to social change. They created many of today’s
nonprofit programs and they still run most institutions. But change
is coming. The GenXers and the Millennials are set to take over.
Social profit organizations are facing a major shift as the Boomer
generation will retire from its leadership in both for-profit and
nonprofit employment. These Boomers will be looking towards nonprofits
to fill their desires to reenergize their youthful ambitions to
create a better world. At the same time, as they begin to experience
the downside of aging, they will become major consumers of the nonprofit
services they once supported and delivered. Organizations need to
be prepared for the coming changes in leadership and volunteers.
Peter Brinckerhoff, former VISTA and CEO of Corporate Alternatives,
the first consulting and training company in the U.S. dedicated
to the management concerns of 501(c)3 organizations, has studied
and identified six generational trends as they effect nonprofit
organizations. The trends are: Financial stress, technological acceleration,
diversity of population, redefining the family, “MeBranding,”
and work-life balance.
Click
here to read how the needs and desires
of the boomer generation will impact organizations.
Let
us know
Have
you found ways to attract Baby Boomers to your program?
Contact us at LEADline@CampaignConsultation.com
(LEADline is sponsored by the Corporation
for National and Community Service through its Resource & Fund
Development Initiative.) We would be happy to answer questions or
to give you more support.
Thank you for your interest in On-The-Go eTA, We encourage you to
send
this and other issues of OTG eTA to friends and colleagues
who would benefit from the information. Also, if you’re on
information-overload, you may request email
removal. Otherwise OTG e-TA will be back
soon with another edition.
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IN
THIS ISSUE:
click
on titles below to read full articles
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Details
from above:
Six
Boomer Trends That Will Impact Your Organization (cont.)
Financial
stress
- As Boomers move into living on a fixed income, their support
to nonprofit organizations also will become fixed. Legacy
gifts will compete with family inheritances.
- Boomers will start drawing money out of their retirement
funds soon, affecting the stock market, banking, and other
financial institutions. This will impact endowments.
- Government money will continue to move toward issues of
importance to Boomers.
- Continuing federal deficits and the huge federal debt
will trim the amount of money left for needed social, economic,
educational, health, and environmental efforts.
Technological
acceleration
- Boomers are internet savvy…82% of boomers between
the ages of 38 and 56 were online in 2004. Marketing opportunities
are available to reach the Boomer generation that didn’t
exist in previous generations.
- Technological change has led to the expectation that we
are available and reachable twenty-four hours a day, seven
days a week.
Diversity
of population
- Sometime in this century Caucasians in the United States
will become a minority. Nonprofits need to be prepared to
respond to this diversity in their leadership, in their
programming and in their donor base.
- Immigration from every corner of the globe continues to
swell our population. It cannot be assumed that everyone
is fluent in English or even wants to be. This is causing
some major rethinking for policy makers on a national, state,
and local level. Self-identity, cultural competence, family
traditions, and related cultural identifiers are all in
flux.
Redefining the family
- There is a major change in the nature of family itself.
With more divorces and remarriages, the number of "steps"
in any given household has exploded. When you add same-sex
marriage, multiple generations, and single parenting into
the mix, the definition of family is rapidly changing.
- Families are more mobile. As they age, the Boomer population
will not have the support system of family members in close
proximity. Nor will these Boomers be the ready support system
for younger family members. It has changed the need for
day care —if grandma is 400 miles away, you can’t
drop the kids off. Programs and services need to fill the
gap that was once provided by family members and also to
develop family-friendly policies.
- Communications and access to transportation options has
enabled long-distance families to maintain their ties—a
good thing, given the trend. But this trend has changed
the long-term, multigenerational commitment to a particular
community and its nonprofits.
- The issue of family change has repercussions on health
care benefits, social security, generational legacies, and
in a dozen other areas, many of which we’re just discovering.
It also impacts the kinds of family-friendly policies foundations,
associations, and nonprofits set up to recruit and retain
the staff and volunteers they need.
MeBranding
- We have learned that we can segment markets down to the
ultimate limit—the individual consumer. It is largely
affecting the business market right now—but it will
impact the expectations of staff, volunteers, boards, grantees,
grantmakers, donors, clients, museum attendees, play goers,
concertgoers, students, parents, and on and on. Nonprofits
that figure out cost effective ways to attend to this trend—which
can be very expensive—are going to accomplish their
missions with greater ease than those who do not. They will
thrive as others fold.
- As boomers have grown more accustomed to getting things
the way they like them, they lose understanding of the ways
other people like things. They have less tolerance for the
group mentality and they expect personal attention and recognition
for their giving of time and money.
Work-life balance
- Boomers are rethinking their work-life balance as they
enter their late fifties and early sixties. In the ages
of decreasing loyalty to both employees and employers, boomers
acquiesced to longer working hours, shorter vacations, longer
commutes, quality family time instead of quantity family
time. They bought into the idea that everyone could have
both a high-end business career and a perfect family life.
Now they want a break.
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Resources
The
National ASK (Awareness, Skills, Knowledge) to Sustain Institute,
sponsored by Corporation for National and Community Service, provided
by Campaign Consultation, Inc. 1998, 2002
The CNCS Resources Now! National Institute, sponsored by
Corporation for National and Community Service, provided by Campaign
Consultation, Inc. 2005-07
Learning
Products and Services
LEADline:
(Learning Experiences At a Distance) LEADline is
designed to give information fast. Have a resource & fund development
question? Use LEADline and within 24 hours you will receive response
and advice from a fundraising professional.
Contact
us
LEADline@CampaignConsultation.com
GIZMOs:
(Giving Information for Zooming Money Objectives) GIZMOS are
resource and fund development tools for you and your volunteers.
They are tangible products in packets, pocket brochures, CD-ROMs,
games, etc. They feature a myriad of fundraising topics such as
The Case for Support, an interactive online resource. To order,
contact us through LEADline@CampaignConsultation.com
or call 410.243.7979 or toll free at 1.877.243.2253
View
and use our newest GIZMO, Building Your Case for Support, at www.CampaignConsultation.com/gizmos/case
The
Chronicle of Philanthropy:
Everyone who comes to a Resources Now! National Institute
gets a free subscription to the Chronicle for a year. Participants
in CNCS Campaign Consultation workshops receive the latest issue
free of charge plus a $20 discount on one year’s subscription.
Workshops/Clinics:
The Corporation for National and Community Service (CNCS),
through its T/TA service provider Campaign Consultation, Inc., offers
a three-hour workshops and clinics for those interested.
Online
Courses/Webinars:
Web course delivery of topics pertinent to resource development
such as — Build Fundraising Volunteer Champions
and Cause Related Marketing and Corporate Partnerships.
Available
through the Resource Center at http://nationalserviceresources.org
Read
Back Issues of OTG e-TA
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