What is the Great Wealth Transfer and why does it matter to nonprofits?
By 2033, approximately $31 trillion will pass to the next generation. This is known as the “Great Wealth Transfer”.
A few weeks ago, I had the privilege of speaking at AFP (Association of Fundraising Professionals) Icon’s Conference in Seattle, where thousands of nonprofit professionals gathered to discuss fundraising’s future. As someone who works closely with nonprofits, particularly within the higher education and healthcare sectors, I’ve been deeply focused on the transformative shifts happening right now, especially the Great Wealth Transfer. Over the years, my research has made one thing clear: If nonprofits want to secure their future, understanding and connecting with this emerging class of donors is essential.
The Great Wealth Transfer is already reshaping philanthropy. Nonprofits prepared to meet this historic moment with precise, actionable insights will be the most successful in connecting with future donors.
The key isn’t merely knowing that a massive transfer of wealth is occurring; it’s in proactively identifying and connecting with these future donors before anyone else does. Let’s dive into exactly how this looks in practice.
Financial studies show that through the Great Wealth Transfer, $31 trillion will pass from one generation to the next, which is a larger figure than the entire GDP of the US and 10x the market cap of Microsoft, the world’s most valuable company at the time that our most recent Wealth Transfer Report was published. The stat shouldn’t trigger panic (yet), but it should be an indicator that it’s time to start preparing. The next generation’s philanthropic priorities and behaviors differ dramatically from those of the previous. They’re digitally connected, socially conscious, and prefer supporting causes aligned closely with their personal values.
The traditional fundraising strategies that worked for Baby Boomers won’t necessarily resonate with younger generations. Leveraging targeted insights about these emerging donors is the only way to effectively engage them.
Who are wealthy NextGen donors and how do nonprofits engage them?
At the same time, there is a lot that is unique about the next generation of donors, who are Millennials and Gen Zers aged 43 or younger, and how nonprofits should engage them. Our recent University Alumni Report revealed some interesting insight into wealthy NextGen graduates, specifically Millennials and Gen Z graduates with a high affinity to giving to education causes.
We found that approximately 59% of today’s UHNW (Ultra High Net Worth) individuals are self-made. Both inherited and self-made wealth play critical roles in next-generation philanthropy. Consider engaging a donor who has inherited family wealth – it’s likely that they have seen their parents engage in the same behavior and they might be more accustomed to donating in the same way to the same organizations.
Altrata is the only wealth intelligence provider offering detailed family insights which is crucial context for connecting with the recipients of significant wealth during the Great Wealth Transfer.
This is in contrast with those donors who are primarily self-made who might be a bit more skeptical and cautious of making a large donation to an organization without knowing how their donation will be making an impact. Taking this into consideration before you engage a donor can make or break a potential relationship. We also found that many next-gen donors, whether their wealth is inherited or self-created, come from industries such as banking, finance, and technology, shaping their approach to giving and relationship-building.
It might be time to rethink our assumptions. Younger, wealthy individuals often seek active involvement and transparency in their giving. They want to understand precisely where their contributions go and how they make an impact. Wealth intelligence helps nonprofits uncover these deeper motivations and tailor their outreach effectively, addressing the unique characteristics of both self-made and inheriting donors.
How to leverage wealth intelligence for effective prospecting and outreach
In my years of experience supporting nonprofits, I’ve seen firsthand how wealth intelligence platforms like Altrata can significantly enhance donor engagement strategies. The value is not simply identifying wealthy individuals, it’s identifying those who align closely with your organization’s mission and vision.
Altrata is the only wealth intelligence provider offering detailed family insights which is crucial context for connecting with the recipients of significant wealth during the Great Wealth Transfer. Wealth intelligence tools provide comprehensive profiles, including career paths, philanthropic history, and detailed family backgrounds, allowing nonprofits to proactively build authentic relationships.
For example, knowing that a prospective donor works in finance and has historically supported educational causes provides invaluable context. It allows you to approach them with confidence and relevance, significantly improving your likelihood of engagement.
If your team is looking to identify the next generation of donors who align with your mission, Altrata can help. Our wealth intelligence offers access to detailed profiles of individuals who are not only capable of giving but are likely to care deeply about your cause. Whether you’re focused on education, healthcare, the arts, or any other sector, we can help you pinpoint the right prospects before your peers do. These insights can strengthen your outreach and bring greater precision to your next campaign.
Leveraging actionable wealth insights for strategic fundraising
In my experience, nonprofits succeed when they clearly align their initiatives with the genuine interests of their prospective donors. Wealth intelligence allows fundraisers to do precisely that. If you discover potential donors have strong affinities toward arts, science, technology, or healthcare, your campaign outreach can immediately reflect these priorities.
Take, for example, donor segmentation. Using accurate wealth and interest data, you can craft highly personalized messages for specific donor groups. This isn’t merely good practice; it’s critical for engaging the next generation, especially since they expect tailored interactions that demonstrate genuine understanding and clear alignment with their goals.
How Altrata’s donor prospect research software helps higher educational institutions
At Altrata, we’ve witnessed remarkable results when organizations apply wealth intelligence effectively. A prime example is Case Western Reserve University. Using Altrata’s wealth data, they identified nearly 1,000 entirely new prospects and secured transformative gifts, significantly enhancing their fundraising capacity and outreach.
Case Western Reserve University isn’t the only example, either. Nonprofits across various sectors have similarly benefited. Healthcare is using intelligence to find donors to help push for breakthroughs, educational institutions have proactively connected with younger alumni before their full giving capacity has even been reached, and many more.
Stories like this show wealth intelligence’s tangible impact. These insights allow nonprofits to operate smarter and faster. When you operate smarter and faster, you also get the added benefit of intentionality and genuine connection, both of which are essential for the next generation.
The future of fundraising is data-driven
The Great Wealth Transfer is already reshaping philanthropy. Nonprofits prepared to meet this historic moment with precise, actionable insights will be the most successful in connecting with future donors. As I’ve seen firsthand, leveraging trusted donor prospect research software, such as Altrata,, is the differentiating factor between success and mediocrity today, and further, the difference between success and outright viability in the future.
We would like to thank AFP Icon for allowing our team to return as proud sponsors and support nonprofits across the world. Thank you for having us – we’re already looking forward to next year!
Book your live demo and learn how Altrata can help your organization today.