Diese Präsentation wurde erfolgreich gemeldet.
Wir verwenden Ihre LinkedIn Profilangaben und Informationen zu Ihren Aktivitäten, um Anzeigen zu personalisieren und Ihnen relevantere Inhalte anzuzeigen. Sie können Ihre Anzeigeneinstellungen jederzeit ändern.
The Statistics & Psychology of Baby
Boomer Lifetime & Legacy Giving
A very special generation
or just typical old
people?
...
Why Baby Boomer
presentations
contain more than
the recommended
daily allowance of…
There are two
competing stories
• One ...
Cohort story
Your group was a
special snowflake,
unique in all of
human history.
Because of the
special attributes in
this...
Cohort stories
• Woodstock
• Man on moon
• Vietnam
• Kent State
• Bob Dylan
Age stories
You’re just like
everybody else wh...
Boomers are different! More than any other age group,
We voted for this guy!
Yeah, OK, but….
… then you got old and more than any younger age
group, you voted for this guy.
Cohort
(generation)
differences
30%
Age differences
70%
MY PRESENTATION
Cohort
(generation)
differences
90%
Age difference...
To truly separate age
effects from cohort
effects we have to
compare people from
different cohorts
when they were the
same...
Cohort Difference 1
Baby Boomers with the same income donate less than
previous generations
Panel Study on Income Dynamics...
“baby boomers’ [mean] religious giving is $789,
about $200 less than expected compared to
the prewar cohort in middle adul...
Agree to make a gift
Refuse to make a gift Yes
No
Agree to make a gift
Refuse to make a gift
Avoid the giving decision Avoid
Yes
No
Agree to make a gift
Refuse to make a gift
Avoid the giving decision Avoid
Yes
No
You have to ask
University alumni whose ...
Cohort Difference 2
Baby Boomers are much more likely to be childless
9%
11%
13%
15%
17%
19%
21%
1976(82-86)
1977(81-85)
1979(80-84)
1980(79-83)
1981(78-82)
1982(77-81)
1983(76-80)
1984(75-79)...
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
prelim
2018
proj
Age 55+ char...
Cohort Difference 3
Baby Boomers have more formal education
5%
10%
15%
20%
25%
30%
35%
1971
1974
1977
1980
1983
1986
1989
1992
1995
1998
2001
2004
2007
2010
2013
U.S. population shar...
0%
2%
4%
6%
8%
10%
12%
14%
16%
1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
prelim
2018
proj
Age 55+ inclusion of cha...
8.0%
8.5%
9.0%
9.5%
10.0%
10.5%
11.0%
11.5%
12.0%
1998
(n=18,987)
2000
(n=18,142)
2002
(n=17,353)
2004
(n=17,464)
2006
(n=...
Education & childlessness
explains charitable planning growth
among boomers nearing retirement
James, R.
N., III.,
Lauderd...
Possible Cohort Difference 4
Baby Boomers might be
shifting from wills to
nonprobate transfers rather
than from wills to t...
30%
35%
40%
45%
50%
55%
60%
65%
1995/6 1998 2000 2002 2004 2006 2008 2010 2012 2014(p)
Age 55+ use of will alone by age se...
0%
5%
10%
15%
20%
1993 1995/6 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016(p)
Age 55+ use of funded trust by age segm...
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
1995/6 1998 2000 2002 2004 2006 2008 2010 2012 2014(p)
Age 55+ with a will or trus...
States allowing “Transfer on Death”
deeds in 1995
States allowing “Transfer on Death”
deeds in 2000
States allowing “Transfer on Death”
deeds in 2005
States allowing “Transfer on Death”
deeds in 2017
Reported wills are often unused
17%
38%
10%
18%
11%
6%
Distributed estates where decedent reported having a
signed and wit...
Funded trusts more likely to work
76%
10%
7%
3%
4% Distributed estates where decedent reported
having a funded trust (n=1,...
Predicting who actually
transferred money to charity
among those who reported
having a charitable will/trust
component in ...
2000000
2500000
3000000
3500000
4000000
4500000
1914(Age104)
1916(Age102)
1918(Age100)
1920(Age98)
1922(Age96)
1924(Age94)...
0
5,000,000
10,000,000
15,000,000
20,000,000
50-54 55-59 60-64 65-69 70-74 75-79 80-84 85-89 90-94 95-99 100+
2001
2002
20...
1,900,000
2,000,000
2,100,000
2,200,000
2,300,000
2,400,000
2,500,000
2,600,000
2,700,000
Total deaths in U.S.
Baby Bust
(...
Baby boomers numerosity will
impact CRT creation first, then CGA
creation, then bequests realization
Realized
Bequest Peak...
Darn Kids!
(Baby boomers are still
too young to impact
bequest dollars
received)
Age Differences
76
78
80
82
84
86
88
MedianAgeatDeath
Linear (Male Bequest Donor)
Linear (Female Bequest
Donor)
Linear (All Female)
Linear...
70-90% of charitable bequest dollars
come from decedents aged 80+
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
65 70 75 80 ...
2000000
2500000
3000000
3500000
4000000
4500000
1914(Age104)
1916(Age102)
1918(Age100)
1920(Age98)
1922(Age96)
1924(Age94)...
0
20
40
60
80
100
120
140
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
$BillionsAnnually
Est. Hig...
Baby boomers haven’t yet signed the estate
planning documents that will ACTUALLY transfer
dollars to charity
The score doe...
Age at Will Signing
(by share of total charitable bequest $ transferred)
76%
11%
13% 80s+
70s
pre-70
Australian data from:...
Charities receiving the
largest share of bequest
dollars often represent
causes naturally in front
of people in their 80s,...
Most realized charitable plans (in red)
added within 5 years of death
38%
13%10%
39%43%
22%
15%
20%
Estates $ Gifted
A 5% national sample of 2012 probate records
in Australia showed an estimated
• 31% of charitable wills were signed
within...
0%
10%
20%
30%
40%
50%
60%
70%
1993/4
to 2004
1995/6
to 2006
1998 to
2008
2000 to
2010
2002 to
2012
2004 to
2014
2006 to
2...
It’s still good to get into Boomer plans, because although
most charitable plans were added within 5 years of death,
ONE l...
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
Before -
8 years
Before -
6 years
Before -
4 years
Before -
2 years
Mixed...
Age difference just ahead
for boomers:
Donation propensity peaks
at about age 75 then falls
Why?
Donation propensity falls sharply for all self-reported
health levels starting at 75
Wiepking, P. & James, R. N., III (201...
Donation propensity falls sharply for all cognitive ability
levels and people shift into lower levels starting at 75
Wiepk...
Donation propensity does not fall sharply within religious
attendance groups, but people shift to low attendance
starting ...
Agree to make a gift
Refuse to make a gift
Avoid the giving decision Avoid
Yes
No
Being asked is a
critical factor
Attendi...
Many
charities
go silent
at the
most
important
point of
decision 20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
8-10 years
pr...
What’s ahead for Baby Boomers:
Advanced aging triggers “mortality
salience” and attitudinal shifts
Both economic and psychological approaches predict that
mortality reminders can lead to
1. Avoidance
(initial and
induced)...
A poverty relief charity was
described as an organization
that focused on either …
Normal Group
Average
Gift
Death Reminde...
Death reminders increase support for one’s surviving
community (“in-group”)
Death reminders increase …
• Giving among Americans to U.S. charities but not to foreign charities
(Jonas, Schimel, Greenb...
Support for the
community can
include
opposition to
outsiders
• Acceptance of negative
stereotypes of residents of other
cities (Renkema, et al., 2008), or nations (Schimel, et al.
199...
Aging and other death
reminders increase
identification with one’s
generation
“asking participants to think
about the last...
• Desire for fame (Greenberg, Kosloff, Solomon, et al., 2010)
• Interest in naming a star after one’s
self (ibid)
• Percep...
In
experiments,
nostalgia
reduces
anxiety
resulting from
death
reminders
Increasing attraction to nostalgia:
How great is ...
Why “Baby Boomers are special” presentations
will continue to be in high demand
Nostalgia
Weren’t we great!
Death reminder...
Death reminders
increase attraction to
personal heroism
H
Pursuit of symbolic immortality: something reflecting the
person...
Gifts that
advance the
donor hero
story
1. The hero goes forth
2. Struggles with a gatekeeper, enters
a horrible place, undergoes an
ordeal
3. Then gains reward
4...
Spoiler alert: Every major epic movie ever
1. The hero goes forth
2. Struggles with a
gatekeeper, enters a
horrible place,...
But, where is the fundraiser in the movie?
1. The hero goes forth
2. Struggles with a
gatekeeper, enters a
horrible place,...
The sage challenges with a choice
Obi-Wan: You must
learn the ways of the
Force, if you're to come
with me to Alderaan.
Lu...
The sage challenges with a choice
Are you giving someone
the opportunity to be
part of something bigger
than themselves?
U...
“Advancing” rather than
“creating” the donor hero
story means that the gift
should fit within the
donor’s existing life
na...
Average for all 10 organizations: The Nature Conservancy, The World Wildlife Fund, The American Cancer Society, The Nation...
Are the donors just an
ATM for the heroic
administrators?
Are the administrators
just following the heroic
donor’s orders?...
The Real Demographics of Baby
Boomers
A very special
generation or just
typical old people?
Russell James
Professor
Person...
The Statistics & Psychology of Baby Boomer Lifetime & Legacy Giving
The Statistics & Psychology of Baby Boomer Lifetime & Legacy Giving
The Statistics & Psychology of Baby Boomer Lifetime & Legacy Giving
Nächste SlideShare
Wird geladen in …5
×

The Statistics & Psychology of Baby Boomer Lifetime & Legacy Giving

649 Aufrufe

Veröffentlicht am

In this irreverent and entertaining slide deck, Dr. James reviews nationally representative data on Baby Boomers and their lifetime and legacy donations. Beyond simple statistics, this session demonstrates how these demographic realities should change how and when you communicate fundraising information to Boomers. If you want a slide deck based on hard data that goes beyond "just so" stories with obligatory pictures of Woodstock, Vietnam, and Neil Armstrong - then this is the place for you!

  • Comparing VigRX Plus to ED Prescription Drugs ▲▲▲ https://bit.ly/30G1ZO1
       Antworten 
    Sind Sie sicher, dass Sie …  Ja  Nein
    Ihre Nachricht erscheint hier
  • DOWNLOAD TH1S BOOKS INTO AVAILABLE FORMAT (Unlimited) ......................................................................................................................... ......................................................................................................................... Download Full PDF EBOOK Here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... Download Full EPUB EBOOK Here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... ACCESS WEBSITE for All Ebooks ......................................................................................................................... Download Full PDF EBOOK Here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... Download EPUB EBOOK Here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... Download doc EBOOK Here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Antworten 
    Sind Sie sicher, dass Sie …  Ja  Nein
    Ihre Nachricht erscheint hier
  • DOWNLOAD FULL BOOKS, INTO AVAILABLE FORMAT ......................................................................................................................... ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Antworten 
    Sind Sie sicher, dass Sie …  Ja  Nein
    Ihre Nachricht erscheint hier
  • How To Cure Acne For Good, Achieve lasting acne freedom Simple proven science of clear skin ◆◆◆ http://scamcb.com/buk028959/pdf
       Antworten 
    Sind Sie sicher, dass Sie …  Ja  Nein
    Ihre Nachricht erscheint hier
  • If you just broke up with your Ex, you have to follow these steps to get him back or risk ruining your chances. ▲▲▲ http://t.cn/R50e5nn
       Antworten 
    Sind Sie sicher, dass Sie …  Ja  Nein
    Ihre Nachricht erscheint hier

The Statistics & Psychology of Baby Boomer Lifetime & Legacy Giving

  1. 1. The Statistics & Psychology of Baby Boomer Lifetime & Legacy Giving A very special generation or just typical old people? Russell James Professor Personal Financial Planning Texas Tech University
  2. 2. Why Baby Boomer presentations contain more than the recommended daily allowance of… There are two competing stories • One story people really love • One story people really resist
  3. 3. Cohort story Your group was a special snowflake, unique in all of human history. Because of the special attributes in this shared community of lived experiences you have unique preferences and behaviors. Age story You’re just getting old. This is how people think and act when they get old.
  4. 4. Cohort stories • Woodstock • Man on moon • Vietnam • Kent State • Bob Dylan Age stories You’re just like everybody else who got old. vs.
  5. 5. Boomers are different! More than any other age group, We voted for this guy! Yeah, OK, but….
  6. 6. … then you got old and more than any younger age group, you voted for this guy.
  7. 7. Cohort (generation) differences 30% Age differences 70% MY PRESENTATION Cohort (generation) differences 90% Age differences 10% TYPICAL PRESENTATION
  8. 8. To truly separate age effects from cohort effects we have to compare people from different cohorts when they were the same age
  9. 9. Cohort Difference 1 Baby Boomers with the same income donate less than previous generations Panel Study on Income Dynamics A nationally representative study continuously operating for 50 years Allows comparing across generations at the same age and income
  10. 10. “baby boomers’ [mean] religious giving is $789, about $200 less than expected compared to the prewar cohort in middle adulthood. Secular giving is about $40 less than expected. Hence, most of the baby boom’s less than expected giving is due to their levels of religious giving.” Wilhelm, M. O., Rooney, P. M., & Tempel, E. (2007) Changes in religious giving reflect changes in involvement: Age and cohort effects in religious giving, secular giving, and attendance, Journal for the Scientific Study of Religion, 46(2):217–232 Why? The study identifies the answer: Because boomers attend religious services less Attending religious services Socially relevant donation requests Charitable giving Result
  11. 11. Agree to make a gift Refuse to make a gift Yes No
  12. 12. Agree to make a gift Refuse to make a gift Avoid the giving decision Avoid Yes No
  13. 13. Agree to make a gift Refuse to make a gift Avoid the giving decision Avoid Yes No You have to ask University alumni whose names appeared earlier in the alphabet were more likely to be called with a phone solicitation and, consequently, were more likely to make gifts to the university Meer, J., and H. S. Rosen. 2011. “The ABCs of Charitable Solicitation.” Journal of Public Economics, 95 (5): 363-371.
  14. 14. Cohort Difference 2 Baby Boomers are much more likely to be childless
  15. 15. 9% 11% 13% 15% 17% 19% 21% 1976(82-86) 1977(81-85) 1979(80-84) 1980(79-83) 1981(78-82) 1982(77-81) 1983(76-80) 1984(75-79) 1985(74-78) 1986(73-77) 1987(72-76) 1988(71-75) 1990(70-74) 1992(69-73) 1994(68-72) 1995(67-71) 1998(66-70) 2000(65-69) 2002(64-68) 2004(63-67) 2006(62-66) Year (current age range) Percentage of U.S. women who were childless (measured at age 40-44 showing year of measurement and current age range)
  16. 16. 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 prelim 2018 proj Age 55+ charitable recipient among those with will/trust by family status Grandchildren Children only No Offspring (unmarried) No Offspring (married)
  17. 17. Cohort Difference 3 Baby Boomers have more formal education
  18. 18. 5% 10% 15% 20% 25% 30% 35% 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 U.S. population share with bachelor's degree+ Age 55+ Age 35-54
  19. 19. 0% 2% 4% 6% 8% 10% 12% 14% 16% 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 prelim 2018 proj Age 55+ inclusion of charitable recipient by education level Grad School College Grad Some College HS Grad <HS Grad
  20. 20. 8.0% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 1998 (n=18,987) 2000 (n=18,142) 2002 (n=17,353) 2004 (n=17,464) 2006 (n=17,033) 2008 (n=16,280) 2010 (n=17,562) 2012 (n=17,798) 2014 (n=17,527) 2016 preliminary 2018 projected Charitable beneficiary among those aged 55+ with a will or trust
  21. 21. Education & childlessness explains charitable planning growth among boomers nearing retirement James, R. N., III., Lauderdale, M. K., & Robb, C. A. (2009). The growth of charitable estate planning among Americans nearing retirement. Financial Services Review, 18(2), 141- 156. Probit regression where presence of charitable estate plan = 1 reporting p-values in brackets
  22. 22. Possible Cohort Difference 4 Baby Boomers might be shifting from wills to nonprobate transfers rather than from wills to trusts
  23. 23. 30% 35% 40% 45% 50% 55% 60% 65% 1995/6 1998 2000 2002 2004 2006 2008 2010 2012 2014(p) Age 55+ use of will alone by age segment 55-64 65-74 75+
  24. 24. 0% 5% 10% 15% 20% 1993 1995/6 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016(p) Age 55+ use of funded trust by age segment 55-64 65-74 75+
  25. 25. 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 1995/6 1998 2000 2002 2004 2006 2008 2010 2012 2014(p) Age 55+ with a will or trust by age segment 55-64 65-74 75+
  26. 26. States allowing “Transfer on Death” deeds in 1995
  27. 27. States allowing “Transfer on Death” deeds in 2000
  28. 28. States allowing “Transfer on Death” deeds in 2005
  29. 29. States allowing “Transfer on Death” deeds in 2017
  30. 30. Reported wills are often unused 17% 38% 10% 18% 11% 6% Distributed estates where decedent reported having a signed and witnessed will (n=7,150) No will found Will probated Unprobated will: nothing much of value Unprobated will: estate otherwise distributed Unprobated will: trust distributed Unprobated will: other
  31. 31. Funded trusts more likely to work 76% 10% 7% 3% 4% Distributed estates where decedent reported having a funded trust (n=1,102) Funded trust exists Probated will Otherwise divided Nothing much of value Unknown/Not yet distributed
  32. 32. Predicting who actually transferred money to charity among those who reported having a charitable will/trust component in their final pre- death survey Linear probability model, 298 observations Q: Is it actually the trust or is it the kind of people who have trusts? A: It’s the trust. James, R. N., III. (2009). Wills, trusts, and charitable estate planning: A panel study of document effectiveness. Journal of Financial Counseling & Planning, 20(1), 3-14.
  33. 33. 2000000 2500000 3000000 3500000 4000000 4500000 1914(Age104) 1916(Age102) 1918(Age100) 1920(Age98) 1922(Age96) 1924(Age94) 1926(Age92) 1928(Age90) 1930(Age88) 1932(Age86) 1934(Age84) 1936(Age82) 1938(Age80) 1940(Age78) 1942(Age76) 1944(Age74) 1946(Age72) 1948(Age70) 1950(Age68) 1952(Age66) 1954(Age64) 1956(Age62) 1958(Age60) 1960(Age58) 1962(Age56) 1964(Age54) 1966(Age52) 1968(Age50) 1970(Age48) 1972(Age46) 1974(Age44) 1976(Age42) 1978(Age40) 1980(Age38) 1982(Age36) Cohort Difference 5: There’s more of them Births
  34. 34. 0 5,000,000 10,000,000 15,000,000 20,000,000 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85-89 90-94 95-99 100+ 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Key population just starting to grow Total resident population by 5-year age groups First edge of growth in key ages
  35. 35. 1,900,000 2,000,000 2,100,000 2,200,000 2,300,000 2,400,000 2,500,000 2,600,000 2,700,000 Total deaths in U.S. Baby Bust (smaller cohort)
  36. 36. Baby boomers numerosity will impact CRT creation first, then CGA creation, then bequests realization Realized Bequest Peak Age: 88Franey, J. W. & James, R. N., III (2013) Trending Forward: Emerging Demographics Driving Planned Giving. National Conference on Philanthropic Planning, Minneapolis, MN, October 15-17, 2013 CRT Creation Peak Age: 70-74 CGA Creation Peak Age: 75-79 Age differences
  37. 37. Darn Kids! (Baby boomers are still too young to impact bequest dollars received) Age Differences
  38. 38. 76 78 80 82 84 86 88 MedianAgeatDeath Linear (Male Bequest Donor) Linear (Female Bequest Donor) Linear (All Female) Linear (All Male) Wealthy people die old. Wealthy bequest donors die even older.
  39. 39. 70-90% of charitable bequest dollars come from decedents aged 80+ 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 65 70 75 80 85 90 95 96+ Cumulative share of charitable bequest dollars by donor age at death (12,238 decedents) Actual $1MM Gift Cap
  40. 40. 2000000 2500000 3000000 3500000 4000000 4500000 1914(Age104) 1916(Age102) 1918(Age100) 1920(Age98) 1922(Age96) 1924(Age94) 1926(Age92) 1928(Age90) 1930(Age88) 1932(Age86) 1934(Age84) 1936(Age82) 1938(Age80) 1940(Age78) 1942(Age76) 1944(Age74) 1946(Age72) 1948(Age70) 1950(Age68) 1952(Age66) 1954(Age64) 1956(Age62) 1958(Age60) 1960(Age58) 1962(Age56) 1964(Age54) 1966(Age52) 1968(Age50) 1970(Age48) 1972(Age46) 1974(Age44) 1976(Age42) 1978(Age40) 1980(Age38) 1982(Age36) The “baby bust” is driving current bequest transfers Births
  41. 41. 0 20 40 60 80 100 120 140 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 $BillionsAnnually Est. High ('98-'17) Est. Middle ('98-'17) Est. Low ('98-'17) Charitable bequests received Charitable bequests: Predicted v. Received Estimated annually is 1/20 of 20 year estimated total from P.G. Schervish and J. J. Havens (1999) “Millionaires and the millenium: New estimates of the forthcoming wealth transfer and the prospects for a golden age of philanthropy”. Bequests received are inflation-adjusted numbers from Giving USA 2016
  42. 42. Baby boomers haven’t yet signed the estate planning documents that will ACTUALLY transfer dollars to charity The score doesn’t count until the clock runs out
  43. 43. Age at Will Signing (by share of total charitable bequest $ transferred) 76% 11% 13% 80s+ 70s pre-70 Australian data from: Baker, Christopher (October, 2013) Encouraging Charitable Bequests by Australians . Asia- Pacific Centre for Social Investment & Philanthropy - Swinburne University
  44. 44. Charities receiving the largest share of bequest dollars often represent causes naturally in front of people in their 80s, e.g., pets and age-related healthcare concerns Top 100 UK Fundraising Charities (overall) receiving 40% or more of their total fundraising income from bequests: 91%Battersea Dogs & Cats Home 80%The Donkey Sanctuary 74%Arthritis Research Campagin 72%Erskine (veterans health care) 68%Royal National Institute for Deaf People 64%Royal National Lifeboat Institution (coast guard) 64%Royal Society for Prevention of Cruelty to Animals 62%Cats Protection 62%Guide Dogs for the Blind 60%St. Dunstan's (blind veterans) 59%Parkinson's Disease Society of the UK 59%Royal National Institute of Blind People 57%Blue Cross/Our Dumb Friends League (pets) 50%PDSA (veterinary charity) 49%Help the Aged 48%Barnardo's (UK children's poverty charity) 47%Multiple Sclerosis Society 44%Sue Ryder Care (hospice) 44%The National Trust (historic buildings) 43%Diabetes UK 43%Cancer Research UK 42%The Stroke Association 42%Motor Neurone Disease Association 42%Leonard Cheshire Disability (disabled people) 41%Royal Society for Protection of Birds 41%Christie Hospital Charitable Fund (cancer) Pharoah, C. (2011). Charity Market Monitor 2010: Tracking the funding of UK Charities. CaritasData
  45. 45. Most realized charitable plans (in red) added within 5 years of death 38% 13%10% 39%43% 22% 15% 20% Estates $ Gifted
  46. 46. A 5% national sample of 2012 probate records in Australia showed an estimated • 31% of charitable wills were signed within 2 years of death • 60% were signed within 5 years of death Baker, Christopher (October, 2013) Encouraging Charitable Bequests by Australians . Asia-Pacific Centre for Social Investment & Philanthropy - Swinburne University
  47. 47. 0% 10% 20% 30% 40% 50% 60% 70% 1993/4 to 2004 1995/6 to 2006 1998 to 2008 2000 to 2010 2002 to 2012 2004 to 2014 2006 to 2016 10-Year Retention of Charitable Estate Component 70+ 50-69
  48. 48. It’s still good to get into Boomer plans, because although most charitable plans were added within 5 years of death, ONE longer-term plan was worth THREE first made in the final two years of life.
  49. 49. $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 Before - 8 years Before - 6 years Before - 4 years Before - 2 years Mixed After +2 years After +4 years After +6 years After +8 years AnnualCharitableGivinginConstant(InflationAdjusted)2012Dollars Giving Before and After Adding Charitable Beneficiary to Estate Plan9,439 observations from a nationally representative longitudinal study $7,381 average annual giving post-plan $4,210 average annual giving pre-plan +$3,171 average annual giving increase
  50. 50. Age difference just ahead for boomers: Donation propensity peaks at about age 75 then falls Why?
  51. 51. Donation propensity falls sharply for all self-reported health levels starting at 75 Wiepking, P. & James, R. N., III (2013). Why are the oldest old less generous? Explanations for the unexpected age-related drop in charitable giving. Ageing & Society, 33(3), 486-510. $500+
  52. 52. Donation propensity falls sharply for all cognitive ability levels and people shift into lower levels starting at 75 Wiepking, P. & James, R. N., III (2013). Why are the oldest old less generous? Explanations for the unexpected age-related drop in charitable giving. Ageing & Society, 33(3), 486-510. $500+
  53. 53. Donation propensity does not fall sharply within religious attendance groups, but people shift to low attendance starting at 75 Wiepking, P. & James, R. N., III (2013). Why are the oldest old less generous? Explanations for the unexpected age-related drop in charitable giving. Ageing & Society, 33(3), 486-510. $500+
  54. 54. Agree to make a gift Refuse to make a gift Avoid the giving decision Avoid Yes No Being asked is a critical factor Attending religious services Socially relevant donation requests Charitable giving
  55. 55. Many charities go silent at the most important point of decision 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 8-10 years pre-mortem 6-8 years pre-mortem 4-6 years pre-mortem 2-4 years pre-mortem 0-2 years pre-mortem Lifetime Giving/Volunteering by Estate Donors Giving ($500+) Volunteering
  56. 56. What’s ahead for Baby Boomers: Advanced aging triggers “mortality salience” and attitudinal shifts
  57. 57. Both economic and psychological approaches predict that mortality reminders can lead to 1. Avoidance (initial and induced) 2. Pursuit of lasting social impact (“symbolic immortality”) Hero
  58. 58. A poverty relief charity was described as an organization that focused on either … Normal Group Average Gift Death Reminded Group Average Gift “meeting the immediate needs of people” or $257.77 $80.97 “creating lasting improvements that would benefit people in the future” $100.00 $235.71 *participants giving share of potential $1,000 award K. A., Tost, L. P., Hernandez, M., & Larrick, R. P. (2012). It’s Only a Matter of Time Death, Legacies, and Intergenerational Decisions. Psychological Science, 23(7), 704-709.) Pursuit of lasting social impact What will remain when we are gone?
  59. 59. Death reminders increase support for one’s surviving community (“in-group”)
  60. 60. Death reminders increase … • Giving among Americans to U.S. charities but not to foreign charities (Jonas, Schimel, Greenberg, et al., 2002) • Negative ratings by Americans of anti-US essays (many) • Predicted number of local NFL football team wins (Dechesne, Greenberg, Arndt, et al., 2000) • Ethnic identity among Hong Kong Chinese (Hong, Wong & Liu, 2001) • Willingness of English participants to die or self-sacrifice for England (Routledge, et al, 2008) • German preference for German mark v. euro (Jonas, Fritsche, & Greenberg, 2005)
  61. 61. Support for the community can include opposition to outsiders
  62. 62. • Acceptance of negative stereotypes of residents of other cities (Renkema, et al., 2008), or nations (Schimel, et al. 1999) • Negative ratings of foreign soft drinks (Friese & Hoffmann, 2008) • Support by Iranian students for martyrdom attacks against the U.S. (Pyszczynski , et al. 2006) • Support by Israeli participants of military action against Iran (Hirschberger, Pyszczynski & Ein-Dor, 2009) • Dutch agreement (disagreement) with art opinions given by Dutch (Japanese) critics (Renkema, et al., 2008) Death reminders increase support for community through resistance to outsiders, such as by increasing…
  63. 63. Aging and other death reminders increase identification with one’s generation “asking participants to think about the last day of their life to induce thoughts about life’s finitude (vs. a control condition) led to higher levels of generation identification in midlife and beyond.” “advanced age is associated with the need for generational continuity that, in turn, predicts a stronger identification with one’s generation” Weiss, D. (2014). What will remain when we are gone? Finitude and generation identity in the second half of life. Psychology and Aging, 29(3), 554-562
  64. 64. • Desire for fame (Greenberg, Kosloff, Solomon, et al., 2010) • Interest in naming a star after one’s self (ibid) • Perception of one’s past significance (Landau, Greenberg, & Sullivan, 2009) • Likelihood of describing positive improvements when writing an autobiographical essay (Landau, Greenberg, Sullivan, et al, 2009) • Perceived accuracy of a positive personality profile of one’s self (Dechesne, Pyszczynski, Janssen, et al., 2003) Death reminders increase attraction to positive remembrance: How great is my story!
  65. 65. In experiments, nostalgia reduces anxiety resulting from death reminders Increasing attraction to nostalgia: How great is our story! Death reminders (instant) or Aging (gradual) Nostalgia Weren’t we great! Increased desirefor positive remembrance Increased generational identity
  66. 66. Why “Baby Boomers are special” presentations will continue to be in high demand Nostalgia Weren’t we great! Death reminders (instant) or Aging (gradual) Increased desirefor positive remembrance Increased generational identity
  67. 67. Death reminders increase attraction to personal heroism H Pursuit of symbolic immortality: something reflecting the person’s life story (community and values) will live beyond them 1. Death reminders increase self- reported similarity with a hero 2. After a death reminder, describing one’s own hero (but not another’s) reduces death- related thoughts 3. After a death reminder, reading of a heroic act reduces death- related thoughts only when the hero is reported to share the participant’s birthdate McCabe, S., Carpenter, R. W., & Arndt, J. (2016). The role of mortality awareness in hero identification. Self and Identity, 15(6), 707-726.
  68. 68. Gifts that advance the donor hero story
  69. 69. 1. The hero goes forth 2. Struggles with a gatekeeper, enters a horrible place, undergoes an ordeal 3. Then gains reward 4. And returns to his place of beginning 5. With a gift to improve his world Campbell, J. (1949), The Hero with a Thousand Faces. New York: Pantheon. pp. 245-246 Ex: a successful entrepreneur giving to her alma mater, a cancer survivor giving to cancer research Joseph Campbell’s “monomyth” universal hero story
  70. 70. Spoiler alert: Every major epic movie ever 1. The hero goes forth 2. Struggles with a gatekeeper, enters a horrible place, undergoes an ordeal 3. Then gains reward 4. And returns to his place of beginning 5. With a gift to improve his world
  71. 71. But, where is the fundraiser in the movie? 1. The hero goes forth 2. Struggles with a gatekeeper, enters a horrible place, undergoes an ordeal 3. Then gains reward 4. And returns to his place of beginning 5. With a gift to improve his world
  72. 72. The sage challenges with a choice Obi-Wan: You must learn the ways of the Force, if you're to come with me to Alderaan. Luke: Alderaan? I'm not going to Alderaan, I've gotta get home, it's late, I'm in for it as it is! Obi-Wan: I need your help, Luke. She needs your help.
  73. 73. The sage challenges with a choice Are you giving someone the opportunity to be part of something bigger than themselves? Understanding this role should impact how you feel about confidently asking big vs. apologetically asking small.
  74. 74. “Advancing” rather than “creating” the donor hero story means that the gift should fit within the donor’s existing life narrative This begins with “Socratic Fundraising” inquiring into the donor’s story elements (values, meaning, life, people, experiences)
  75. 75. Average for all 10 organizations: The Nature Conservancy, The World Wildlife Fund, The American Cancer Society, The National Breast Cancer Foundation, A local animal shelter, The American Society for the Prevention of Cruelty to Animals, UNICEF, CARE, Boys and Girls Clubs of America , The YMCA or YWCA. Initial information (5,438 Respondents) If you happened to sign a new Last Will & Testament in the next 30 days, what is the percentage likelihood that you might include a gift to ____ In the next 30 days, what is the percentage likelihood that you might make a gift to ___ Telling people Referencing the causes 14.23% 13.83% Telling people more Referencing the causes and describing example projects of the charities 14.88% 14.64% Asking people Please rate the importance of the causes 17.23%** 19.06%*** Asking people more Please rate the importance of the causes and example projects of the charities 20.32%*** 21.23%*** Socratic Fundraising: The questioning process alters donation intent James, R. N. (2018). Increasing charitable donation intentions with preliminary importance ratings. International Review on Public and Nonprofit Marketing, 1-19.
  76. 76. Are the donors just an ATM for the heroic administrators? Are the administrators just following the heroic donor’s orders? Who is the hero?
  77. 77. The Real Demographics of Baby Boomers A very special generation or just typical old people? Russell James Professor Personal Financial Planning Texas Tech University

×