New Study Reveals 78% of Pre-Retirees and Retirees Prioritize Charitable Giving
Fidelity Charitable, an independent public charity and grantmaker, released findings from its “Charitable living and the new retirement” study, highlighting how donors age 50+ plan for and engage in charitable giving during retirement. With an estimated 4 million Baby Boomers turning 65 this year, the study shows that more than half of pre-retirees and retirees ages 50-80 are committed to giving, with 78% saying that charitable giving plays a significant role in their lives.
“Retirement is an exciting new chapter in life that creates opportunities for retirees to spend more time and resources in support of the meaningful causes they care about, but it also has implications for charities and financial advisors. While the intent and desire to make a difference are strong with retiring donors, there is a knowledge gap around tax-smart strategies,” said Amy Pirozzolo, head of donor engagement at Fidelity Charitable. “That is where we can help them make charitable dollars go further and ensure they achieve their goal of doing well while doing good throughout this next stage of their lives.”
A demonstrated commitment to giving
Beyond providing financial support for charities, pre-retirees and retirees are also actively giving back through volunteerism. In the past year, over two-thirds of pre-retirees (71%) and over half of retirees (55%) volunteered. This could indicate that the trend toward volunteerism may continue to grow as the current group of pre-retirees transitions into retirement.
- Of those retirees who volunteer, more than 1 in 4 (27%) report doing so for over 13 hours a month, indicating commitment to their causes.
- Nearly 9 in 10 retired respondents who currently volunteer agree that volunteering is a way to remain active (88%) and connected (91%).
An opportunity for advisors
Additionally, the research reveals that many retirees rely on advisors for financial planning, but only half (51%) have discussed charitable giving with an advisor. With their knowledge of tax-smart charitable planning methods low, this audience is ripe for additional guidance.
- Tax-smart giving awareness: While most pre-retirees and retirees are familiar with at least one vehicle or method used to support charities financially, 21% are unaware of any.
- Giving method awareness: Awareness of what can be donated is also low. For example, just 1 in 3 pre-retirees and retirees (32%) are aware that they can donate appreciated assets, like stocks.
- Professional charitable advice: While about two-thirds of pre-retirees (69%) and retirees (65%) work with an advisor (financial advisor, certified public accountant, or attorney), 61% of pre-retirees and 51% of retirees report ever having had a conversation with a professional advisor about charitable planning or giving.
The preceding press release was provided by a company unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of the staff of NonProfit PRO.
