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Dear Subscriber,

Will the Great Wealth Transfer happen? And will it create a major windfall for the charitable world?

Ben Gose dives into these questions and more in our new April issue.

According to estimates by Cerulli Associates, a financial-research firm, an estimated $123.7 trillion of wealth will transfer between generations from 2024 to 2048. Philanthropy could receive $18.38 trillion — roughly 15 percent.

There’s some skepticism about this Great Wealth Transfer, though, as hype cycles about previous wealth transfers that didn’t pan out. “This is an area where people are much more interested in fantasy than reality,” says Texas Tech’s Russell James, an academic expert on planned giving. He adds that most of the transfer will occur among the uber-rich and that the bulk of philanthropic giving could primarily go to private foundations, donor-advised funds, universities, and hospitals, with relatively few dollars filtering down to everyday charities.

Still, even James acknowledges that the number of bequests is entering a long uptrend, and many experts say that it’s important for nonprofits to invest in planned giving to secure their financial future. Fundraisers may need to start pushing through the queasiness of discussing planned gifts — it’s “the least comfortable conversation,” says Trish Davis, vice president of major gifts and planned giving at Komen, a breast-cancer charity. Nonprofits and community foundations can also position themselves for gifts by connecting with younger donors who stand to inherit wealth in the coming transfer.

For example, in 2010, the Greater Houston Community Foundation’s board decided that it could add value by offering instruction to young inheritors and entrepreneurs about the increasingly complex charitable world. Lacey Fluor Goossen participated in the organization’s program for next-gen donors and got her family involved in giving through a donor-advised fund at the grant maker. “When we first started this, our philanthropic structure really lacked sophistication,” Peter Fluor, her father, says. “Lacey brought a knowledge and sophistication that we adopted. She also will lead the stewardship of any future charitable and legacy gifts that we might have.”

Nathan Lindstrom, Nathan Lindstrom for the Chronicle

Plus: Tips on how to position your nonprofit for the Great Wealth Transfer. Pointers include encouraging estate planning and making women a top priority.

Also in the new issue:

George Anders checks in with Steve and Connie Ballmer, the power couple that has given away more than $3 billion in the past five years. The primary focus of their giving is economic mobility, but their oldest son, Sam, has helped lead a secondary focus on climate. “This is one of the fastest-moving families we’ve ever worked with — and the most generous,” says Jennifer Kitt, president of Climate Lead. George identifies a few central tenets to the Ballmers’ grant making: trust your grantees, “as opposed to trying to impose our goals on top of them,” says Steve; leverage what’s already working; and partner with well-staffed “backbone” organizations — the Ballmer Group underwrites allies such as StriveTogether with big grants, giving them room to define location-specific strategies for economic mobility.

Rasheeda Childress explores how nonprofits are fundraising amid uncertainty around federal grants and a tough economic environment. “It’s a very scary, challenging time,” says Francys Crevier, CEO of the National Council of Urban Indian Health, an organization that helps Native Americans living in urban areas. How organizations are changing their fundraising strategies depends on how much they’ve been affected by current federal freezes. Some organizations, like the International Rescue Committee, have put out emergency calls to donors. Others are eyeing DAFs and partnerships. “I’m seeing people looking out for each other in a different way than we have before in the nonprofit space,” says Kelly McLaughlin, CEO of From Scratch Fundraising, a consultancy.

Oleksandr Rupeta for the IRC

Eden Stiffman reports on the increasing influence of philanthropy advisers. When P150, a network of advisers to ultra-wealthy donors, polled its 423 members on their clients’ 2024 giving, the number was staggering: $60 billion and counting. That’s about 9 percent of philanthropy. “There’s something appealing to folks who want to have big results in their giving but don’t want to spend their time and energy on building the infrastructure themselves,” says Alex Johnston, founding partner of the firm Building Impact Partners. But growth in this field is raising concerns for some. “The capacity and expertise of those advisers to effectively guide their clients’ philanthropy is a bigger issue in the field than it has ever been before,” says Michael Moody, professor of philanthropic studies at the Lilly Family School of Philanthropy at Indiana University.

Plus: Nine ways to make donors feel loved, how to show you’re ready for a promotion, what bravery from funders looks like (opinion), and how to build a climate funding strategy in the age of Trump (opinion).

The best way to keep up with all the offerings from the Chronicle is to sign up for our Philanthropy Today newsletter. You’ll get updates every day about new items we have posted, plus a guide to what else you need to know from reporting by other news organizations.

By subscribing to Philanthropy Today, you’ll also receive a special newsletter delivered to your inbox every Thursday afternoon that’s dedicated to The Commons, our project that examines how philanthropy and nonprofits can best bring Americans together in a time of hyperpolarization.

Courtesy of ISNA and Scott Spitzer for CCAR

In case you missed it, The Commons has recently featured:

• Eboo Patel on an upswell of interfaith cooperation on issues such as immigration.
• Reid Hoffman and Cecilia Conrad on rebuilding trust in American institutions. (You can watch a YouTube version of my discussion with them.)
• Drew Lindsay on the $3 billion foundation that’s trying to appeal to average Americans by shedding its elite image.

Also, on April 10 at 2 p.m. Eastern, we’re hosting a webinar on smart strategies for attracting general operating support. As costs of everything from rent to salaries rise and economic uncertainty continues, nonprofits need unrestricted grants more than ever. Yet many grant makers still prefer to fund specific programs. Listen to experts share tips on how to make a compelling case for unrestricted grants, smart ways to connect with program officers, and insights on databases and other tools that can help identify the best prospective grant makers.

Thanks, as always, for being a subscriber.

With gratitude,

Andrew Simon, editor-in-chief, Chronicle of Philanthropy