The 80-20 Rule all development directors and fundraising people know about (and quote often) says that, roughly, 80% of the money is going to come from 20% of the donors.
Well, there’s a new sheriff in town in the form of a report recently released by UBS Wealth Management America. According to this report, 80% of our wealthy donors, even as they are upping donations, aren’t satisfied with what their philanthropy accomplishes. UBS attributes that to the approach for the gift, which donors say is more “spur of the moment,” “random.”
My experience tells me this is the case. We as development professionals are too often notoriously bad at assuming people know how their money is creating value, solving problems, addressing issues, making things better.
Donors, UBS says, are happier with their philanthropy when they have plans in place for themselves and the charities they support.
Another finding: Younger donors align their giving with personal values. This isn’t a new thought. Those who study these things have been saying for years that younger donors think differently than their Baby Boomer parents.
Sameer Aurora, head of client strategy at UBS, says “The older generation’s approach is more traditional and out of a sense of duty. . .and the younger generations see it as much more of a passionate calling. . .embedded and integrated into their day-to-day lives”
How are we factoring this knowledge into our philanthropy efforts?
Some good news from the UBS study: Fifty-two percent of wealthy people plan to leave a big share of their wealth to charity when they die.
How you steward your donors today can increase the likelihood your organization will be remembered by these donors in their wills or through some other planned giving vehicle.
Don’t assume that only those donors who are wealthy are capable of leaving a sizable estate gift. Frequently, the donor who has given you $10 a month for 30 years has the capability – and intention – of leaving your nonprofit a sizable estate gift.
Finally, remember: bequests are revocable at any time before the donor’s passing, even when the intent to make an estate gift has been declared. Continued, meaningful stewardship is essential.