In the November edition of The Evidence, Josephine Lethbridge delves into a significant global phenomenon that has the potential to reshape charitable giving – the ‘Great Wealth Transfer’. As we head into the coming decades, women are set to inherit trillions of dollars from their families, which could have a profound impact on the world of philanthropy.
The ‘Great Wealth Transfer’ refers to the transfer of wealth from one generation to the next. In this case, it is the passing down of wealth from older generations to their daughters and granddaughters. This phenomenon is expected to occur on a massive scale, with estimates suggesting that women will inherit around $30 trillion in the next few decades.
This historic shift in global wealth is a result of several factors. Firstly, women are living longer than men, which means they are more likely to inherit from their spouses or family members. Secondly, women are increasingly becoming more educated and entering the workforce, which has allowed them to accumulate wealth in their own right. And finally, there has been a significant increase in the number of women entrepreneurs and business owners, who are building their own wealth and assets.
So, what does this mean for charitable giving? Well, firstly, it is important to note that women are already leading the way when it comes to philanthropy. According to a study by the Women’s Philanthropy Institute, women are more likely to give to charity and give more than men at almost every income level. With the ‘Great Wealth Transfer’, this trend is expected to continue and even increase.
But what sets women apart when it comes to charitable giving? Research suggests that women are more likely to give to causes that align with their values and beliefs. This means that as more women inherit wealth, there is a potential for a shift in the causes that receive funding. With women at the forefront of philanthropy, we can expect to see more support for causes such as education, health, and social justice.
Moreover, women are also more likely to involve themselves in the decision-making process when it comes to charitable giving. They are more likely to be actively involved in the organizations they support, whether it is through volunteering, serving on boards, or advocating for the cause. This level of involvement can bring about new perspectives and approaches to philanthropy, leading to more innovative and impactful solutions.
However, the ‘Great Wealth Transfer’ also presents a challenge for the philanthropic sector. With a significant amount of wealth being transferred to women, it is crucial for organizations to adapt and cater to the changing demographics. This means creating more inclusive and diverse spaces for women to engage with philanthropy and ensuring that their voices are heard.
Furthermore, as women inherit wealth, they also inherit the responsibility of managing it. This presents an opportunity for financial education and empowerment programs targeted towards women. By equipping women with the necessary skills and knowledge to manage their wealth, we can ensure that it is used effectively for the betterment of society.
In conclusion, the ‘Great Wealth Transfer’ has the potential to transform the landscape of philanthropy. With women set to inherit trillions of dollars, we can expect to see a shift in the causes that receive funding and a more active and diverse philanthropic sector. As we look towards the future, it is essential for organizations to embrace this change and work towards creating a more inclusive and impactful world of philanthropy.
