In the November edition of The Evidence, Josephine Lethbridge delves into an unprecedented shift in global wealth and its potential impact on philanthropic giving. With the coming decades set to see a massive transfer of wealth, particularly to women, the question arises – what will they do with it?
According to a report by the Boston Consulting Group, women are set to inherit trillions of dollars over the next few decades. This ‘great wealth transfer’ is expected to be the largest intergenerational transfer of wealth in history. As per the report, by 2030, women will own close to 35 percent of the world’s wealth, a significant increase from the current 30 percent.
This shift in global wealth is a result of multiple factors, including rising education levels, increased participation of women in the workforce, and changes in inheritance laws. While it is a positive development in terms of gender equality and financial empowerment, it also presents a unique opportunity for women to make a difference in the world through philanthropy.
Traditionally, charitable giving has been dominated by men, with women playing a supporting role. However, with the rise of female wealth, there is a growing interest among women to use their wealth for social good. Women are more likely to support causes related to education, healthcare, and poverty alleviation, making them natural allies in the fight against social issues.
One of the key reasons for this shift is the difference in the way men and women approach wealth. While men tend to focus on building and preserving their wealth, women are more likely to see it as a means to create a positive impact in society. This is evident in the rise of female-led philanthropic organizations, such as the Bill and Melinda Gates Foundation and the Chan Zuckerberg Initiative.
The potential for women to make a difference through philanthropy is immense. With their wealth and influence, they can drive social change and create a more equitable world. However, there are also challenges and barriers that need to be addressed to ensure that this potential is fully harnessed.
One of the biggest challenges is the lack of representation of women in the philanthropic sector. Despite their growing wealth, women are still underrepresented in leadership positions in charitable organizations. This gender gap needs to be addressed to ensure that the needs and perspectives of women are taken into account in philanthropic decision-making.
Another barrier is the lack of financial literacy among women. Studies have shown that women are less confident in managing their finances compared to men, which can hinder their ability to make informed decisions about their philanthropic giving. It is important to provide women with the necessary skills and knowledge to manage their wealth effectively and make a meaningful impact through their philanthropy.
Moreover, societal and cultural norms can also restrict women’s ability to exercise control over their wealth and make independent philanthropic decisions. There is a need for a shift in mindset to recognize and support women’s agency in managing their wealth and using it for social good.
The ‘great wealth transfer’ presents a unique opportunity for women to shape the future of philanthropy. With their wealth, influence, and inherent empathy, women have the potential to create a more equitable and sustainable world. It is crucial that we remove the barriers and provide the necessary support for women to realize this potential.
One way to do this is by promoting gender-sensitive philanthropy. This involves taking into account the different needs and perspectives of women in philanthropic strategies and initiatives. It also means empowering women to be leaders and decision-makers in the philanthropic sector.
Another way is to promote collaborative philanthropy, where women work together to pool their resources and drive social change. This can be in the form of women’s giving circles, which bring like-minded women together to support causes they are passionate about. Collaborative philanthropy not only maximizes the impact of individual contributions but also promotes a sense of community and support among women.
The ‘great wealth transfer’ is a game-changer for philanthropy. It is an opportunity for women to take the lead and shape the future of giving. By harnessing their wealth, knowledge, and empathy, women can create a more just and compassionate world for generations to come. It is time to recognize and support women’s potential to make a difference through philanthropy and pave the way for a more inclusive and impactful future.
