More than three-quarters of donors approaching retirement and those who have already retired say charitable giving plays a significant role in their lives, according to a new report from Fidelity Charitable.
The researchers surveyed 2,512 donors ages 50 to 80 who had given $500 or more in the previous year. They found that those donors are also interested in volunteering: Seventy-four percent of pre-retirees and 55 percent of retirees reported volunteering in the previous year. Nearly all — 97 percent of pre-retirees and 93 percent of retirees — also donate money to at least one of the organizations at which they volunteer, the report found.
“Some of your volunteers could be your best givers,” says Amy Pirozzolo, head of donor engagement at Fidelity Charitable. “If they’re volunteering, they might have a propensity and the ability to give more if you engage them in a different way.”
About a quarter of survey participants are “committed givers” who agreed with the statement “giving is much more important than other financial priorities.” Of those donors, 55 percent said, “Charitable giving is a significant part of their lives.” Sixty-eight percent of committed givers donate more than $1,000 annually, and 72 percent have volunteered in the past 12 months.
The top reasons retirees and pre-retirees said they give are to make a difference, give back to their community or faith, help solve a problem, and support an organization they care about.
The report found that respondents were unaware of many of the tools they could use for philanthropic giving. Less than a third knew about donor-advised funds (22 percent), qualified charitable distributions from retirement accounts (26 percent), and donating appreciated assets (32 percent).
Pirozzolo says that nonprofits can combat this lack of knowledge by sharing information on their websites.
“Some of the smartest nonprofits — if you go to their website, many of them have really clear pages on ways to give,” she says. “And if you look at those ways to give, they’re really trying to educate donors and be very open and inclusive about ways that you can donate: stocks, IRAs, bequests through a will, a donor-advised fund, payroll deductions.”
For more information, read the entire report: “Charitable Living and the New Retirement.”
How Different Generations Give
Fundraisers have long known that donors of different generations have different preferences for how they like to give and be stewarded. New survey data from the fundraising companies Qgiv and Bloomerang looks at what donors from Gen Z to baby boomers want when it comes to their relationships with charities.
Gen Z expects to donate the smallest sum of any generation for the year — $5 to $55— but is more likely than other generations to give using a digital wallet, such as PayPal, Google Pay, or Apple Pay. Millennials are into recurring giving: Fifty-one percent of those surveyed said they provide gifts on a monthly or other scheduled recurring basis. Gen X is the generation most willing to raise money for a nonprofit in events like races or bike-athons, with 62 percent saying they would help in that way. Almost 70 percent of boomers are subscribed to a nonprofit’s email list.
The generations did share some things in common. The most preferred stewardship was “nonfundraising communication,” such as newsletters or program updates. Human-service organizations, such as homeless shelters and food banks, were the groups most supported by all generations. All generations except Gen Z planned to donate $100 to $499 this year.
The researchers surveyed just over 1,000 people in May. The full survey, “Generational Giving Report, Volume 2,” is available for download.
Giving Flat in the Second Quarter
Giving to registered charities remained relatively flat in the second quarter of 2024, compared with the first, while informal giving dropped, according to the latest GivingPulse report from GivingTuesday.
Informal giving to unregistered organizations fell 14 percent, while informal giving to individuals dropped 12 percent, the report found. Donors received fewer solicitations in the second quarter: The weekly solicitation rate dropped 11 percent from the first quarter. The 35 percent positive response rate to solicitations was unchanged in the second quarter.
The report estimates that a higher solicitation rate would have resulted in more giving, noting “approximately 8 percent of unsolicited respondents … would have responded generously to solicitation if asked in the past week.”
More information on second-quarter giving is available in the full report.