The Great Wealth Transfer is Irrelevant

The Great Wealth Transfer is irrelevant...

That's right.

The great wealth transfer doesn't matter one bit to your nonprofit if you don't first focus on the Great TRUST Transfer. There's so much talk right now about the coming transfer of wealth, and how many orgs need to be prepared to engage the next generation of generous givers in different ways, understand how the wealth transfer will impact giving, etc.

If you are waiting for the transfer of wealth to start engaging the next generation of givers and potential givers, you've missed the boat. Nothing says "We consider you an ATM" like waiting until someone comes into wealth to begin talking with them and engaging them. If you want to position your cause or organization to be attractive to the next generation of generous givers, you need to be building those relationships now.

What are you doing to bridge the relationship gap today?

Here are some of the sad and concerning things I hear from nonprofits most frequently when it comes to discussions of generational transfer of wealth and giving priorities:

- Don't involve the financial advisors because they complicate things.

- We don't have a relationship with the kids. They probably want the money for themselves, so be careful about bringing them into the conversation.

- We need to get mom and dad to put their plans in writing so we don't get cut out when assets pass to their kids and grandkids.

- Once the lawyers and advisors get involved, there's no telling what happens.

- We've been planning to plan to approach a conversation with the kids for a few years now, but we're not ready yet.

- We need a strategy to figure out how to get in front of the kids because eventually they'll control all of these assets and we will have to prove our worth all over again.

Every one of these statements comes from a place of fear and scarcity.

You don't have to live and operate this way.

But you can't build relationships with the next generation of givers unless you change your perspective in these meaningful ways:

1. Invite every stakeholder into the conversation, starting today.
2. Seek input and guidance from the next generation.
3. Ask your current supporters to help you build and develop relationships with their kids and grandkids.
4. Welcome and support a family's advisors -- they can often bridge relationship gaps on your behalf.
5. Increase your transparency around how family gifts have been used, what your future plans are, and how you hope the family will support ongoing work.
6. Invite the kids into every conversation and welcome their input, even when it doesn't fully align with your goals.
7. Understand that this is a long-term investment, not an immediate cash grab.
8. Find ways to bring multiple generations of the family together to fellowship and engage with you at the same time.
9. Seek counsel from the next generation.
10. Invite the next generation into your strategic conversations.

We know the great wealth transfer is going to be massive. It is undeniable that this will dramatically change generations to come. But if you haven’t invested in relationships with the next generation of potential investors and givers, the wealth transfer might be meaningless to your charity.

That’s why the great trust transfer is so much more important of a focal point for nonprofits than the great wealth transfer. If you don’t have trust, wealth doesn’t matter. 

What is your organization doing to prepare for the great trust transfer?