Don’t Forget About Gen X in Fundraising

Generation X — Gen X for short — is in many ways the forgotten, overlooked and underappreciated generation. The cohort of Americans born between 1965 and 1980 accounts for more than 65 million people, yet a 2022 Twitter poll of 130,000 people asking which generation was most ignored gained traction for its glaring and inexplicable omission of Gen X as an available response. 

Gen X is every bit as forgotten in fundraising and planned giving circles as it is in other walks of life, and of course, on Twitter (or X). Current fundraising efforts often focus on harnessing the largesse of boomers, who are the wealthiest, largest generational cohort in American history. 

That’s because they control nearly $80 trillion, which is half of all wealth in America. Boomers currently range from 60 to 78 years old, and the greatest philanthropic opportunity ever is set to take place over the next 20 years as boomers age and eventually pass on their assets. 

Charities thinking longer term too often skip over Gen X in prioritizing their resources, given that Millennials are now the largest cohort in terms of population and workforce representation. Even though Millennials do happen to be the larger group and are making significant financial strides, Gen X holds $46 trillion in assets and is currently enjoying its peak earnings years right now.

That’s why we really ought to be talking more about Gen X, especially in fundraising. The facts are clear: The two wealthiest Americans, Elon Musk and Jeff Bezos, are both members of Gen X. As are many of the biggest names in Silicon Valley, responsible for founding the largest and most powerful companies in the Fortune 500. Gen Xers are an entrepreneurial group that owns the majority of small businesses and startups. 

What’s more, Gen X took the biggest wealth leap during the stock market boom times of the COVID-19 pandemic — their aggregate net worth doubled — and they are poised to inherit the most money in the Great Wealth Transfer. As boomers retire, Gen X sits at the top of the food chain as it pertains to job titles and, in turn, income. 

Suffice to say, Gen X is doing pretty well for itself and deserves more respect! It’s quite underrated in fundraising circles and beyond. 

Today, baby boomers account for 43% of all philanthropic giving, and they’re usually any charity’s major donors. Gen X is better known for its mid-tier donors, but the attributes of donors who become major donors are earning money through high compensation, growth in investments and inheritance. Gen X checks all three buckets and is surely where the next wave of major donors will come from. Charities that are strategic in thinking about appealing to Gen X should be able to turn many mid-tier donors into major donors in the years to come. 

For any charities reading this and wondering how to better think about Gen X, there are a few unique Gen X tendencies to keep in mind. 

Gen X and Their Philanthropy

First, despite being a smaller generation, Gen X punches above its weight. Its giving accounts for 20% of all charitable dollars, roughly half of what Boomers represent, but double that of Millennials. As well, a greater percentage of Gen Xers volunteer their time to charity than any other generation. 

Second, Gen X is uniquely deliberate in how it chooses to give, and it cares deeply about money being spent wisely. Sixty percent of Gen Xers research nonprofits before they donate and strongly appreciate when nonprofits can demonstrate the impact of a donation to show that it was spent prudently. 

Third, along similar lines as Gen X’s concern with money being spent wisely, Gen X also cares more than any other generation about the tax incentives that come along with making gifts. Gen X is still working, so it is the cohort with the highest income currently, and 42% indicate they view a gift’s tax-deductible status as a “big motivator” in giving decisions. Appealing to Gen X with tax-friendly options like stock, crypto or donor-advised fund donations, instead of cash, can help them save on capital gains taxes and lead to larger gift amounts.

In short, while it’s crucial to focus on planned giving as Boomers age and initiate the Great Wealth Transfer, and important to plan for engaging Millennials in the future, don’t overlook Gen X. Capitalizing on tax-friendly gifts from Gen X now can bring immediate benefits and may turn them into major donors soon.

The preceding blog was provided by an individual unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of NonProfit PRO.