The Baby Boomers are at it again. With 10,000 people turning 65 every day through 2030, Baby Boomers are rewriting the retirement narrative as they have throughout their lives in areas such as culture, politics, and sports. Considering that individuals contributed 70 percent of the $410 billion given to charitable organizations in 2017, should nonprofits be concerned that charitable giving will drop as those over 65 are now 15 percent of the total population? After all, it is well noted that spending decreases in retirement, even when retirement is anticipated.

The Women’s Philanthropy Institute’s (WPI) recent study explored the impact of retirement on charitable giving from a gender perspective. Contrary to conventional wisdom, the WPI study found that charitable giving does not drop around retirement. That said, gender differences do exist. In analyzing giving trends by single men, single women, and married couples at retirement, the study found that the giving patterns of single women and married couples hold steady while single men’s giving is more volatile – it fluctuates substantially in the five years after retirement.

Retirement and Charitable Giving

Moreover, single women and married couples are more likely to give and give more than single men. This finding is consistent with other research conducted by the Women’s Philanthropy Institute – the giving pattern of single men is different from that of single women and married couples. The charitable giving of single women and married couples remains fairly stable as they move through their retirement years; single men’s giving appears much more volatile in comparison.

In examining volunteering patterns of single men, single women, and married couples, the study found similar results. Single women and married couples are more likely to volunteer and their volunteering is more stable than that of single men.

How Women Are Influencing Giving

This study is another example of how and why gender matters in philanthropy. Women are exercising their philanthropic clout individually or in households at all stages of their lives as WPI studies demonstrate.

Girls volunteer more than boys. Younger women (under 45) are exercising more influence than their counterparts did forty years ago. When GenX/Millennial women marry and influence the household giving decisions, the estimate of giving is higher than that of pre-Boomer women. In households where the wife influences giving decisions, the more a household gives as a percentage of income, the happier the household is. Against a backdrop in which women, in general, earn less than men, are more risk-averse with finances, have less in retirement, and outlive their spouses, Boomer and older women are more likely to give and give more to charity than men.

In addition to the research, women’s increased education, income, and wealth have significant implications for philanthropy. Today, more women are financially independent and make up about 47 percent of the top wealth holders in this country. Some reports suggest that women have as much as $13.2 trillion in wealth in North America alone. How women use their money matters, too. A U.S. Trust study found that high net worth “women are nearly twice as likely as men to say that giving to charity is the most satisfying aspect of having wealth.”

The retirement, gender, and giving report reveals that individuals seem to establish their philanthropic patterns early and carry them through life. This research provides empirical evidence that charitable giving remains a priority at this stage of life and beyond. The giving and volunteering findings from this study are encouraging for the future of philanthropy; they also suggest opportunities for deeper engagement with older Americans.

Turning Research into Action

For years, one measure of the health of the philanthropy sector has been giving as a share of GDP, an amount that has hovered around 2 percent for more than four decades. One way to grow giving is to sustain donor engagement across the donor’s life; this study affirms that engagement should not stop because a donor has reached retirement age. It also underscores the need for nonprofits to tailor their strategies to men and women. This report is a gentle reminder for nonprofits and donors alike to be more cognizant about charitable giving around retirement and how gender differences come into play. Four specific actions to take are:

  1. Alert the nonprofits you work with not to ignore older donors and prospective donors. These nonprofits may want to think about how to generate more consistent giving from male donors in particular, and how to tap into women’s more consistent giving behavior.
  2. If you are retired or thinking about retiring, share with others how you are approaching philanthropy at this stage of life.
  3. Weave philanthropy into your financial plan. Engage your family in conversations about how philanthropy fits into your family values.  Discuss the legacy you wish to leave through your philanthropy.
  4. Encourage the nonprofits you work with to consider new and/or innovative opportunities to engage older adults as volunteers. Think about how those nonprofits can create opportunities that appeal to men in particular.
At the Cutting Edge of Deeper Engagement
  • Encore.org is re-envisioning how our country engages with people 50+ through innovative programs like Gen2Gen and Encore Fellowships.
  • National Center for Family Philanthropy is at the forefront of bringing families together through philanthropy.
  • AARP offers resources for volunteer opportunities through its Create the Good portal.

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Original contribution by Andrea Pactor, Interim Director, Women’s Philanthropy Institute at the Indiana University Lilly Family School of Philanthropy