It’s the time of year when Americans tend to think about charitable giving. We’re moved by the spirit of the holiday season — and we also know we have to take care of tax planning before the end of the calendar year.

This year, as nonprofit leaders and organizations focus on their year-end campaigns, it’s also time to start thinking about the massive generational transfer of wealth that’s pending in this country. Baby Boomers have accumulated an unprecedented amount of wealth, and they’re getting ready to pass it on to their heirs. Over the next 20 years, a remarkable $61 trillion will be transferred, according to one study. 

Naturally, that means organizations have big opportunities for planned giving from their most generous donors. The same study shows that another $9 trillion will be directed to recipients other than direct heirs.

But once that transfer takes place, it could leave nonprofit organizations in a bind. Put simply, is it possible for nonprofit organizations to continue to count on their most reliable donors once those donors are no longer alive? 

I think it is. But it will require work—on the part of donors and on the part of nonprofits.

Donors can ensure their commitments live on by creating family foundations, donor-advised trusts, and otherwise working to educate their heirs about philanthropy and their own priorities.

What’s needed for nonprofits, says Gary Laermer, Pace University’s indefatigable vice president for development, is nothing less than a paradigm shift. We need to start connecting with families, not just individuals. We need to articulate a resonant mission, not just relying on tradition, legacy, or old school ties. And we need to learn how to steward donors of all kinds.

This year, I turned 29. This means old enough to vote. Old enough to grab a glass of wine at Daniel's Vineyard. And old enough to rent a car. And while I have years of professional experience — and even a few gray hairs — I'm still not top of mind to be a member of anyone's board of directors. Why is that?

I had the opportunity to watch Dr. Una Osili, associate dean for research and international programs and Dean's Fellow for the Mays Family Institute on Diverse Philanthropy at Indiana University Lilly Family School of Philanthropy, present The Truth About Board Diversity. During her presentation, Dr. Osili indicated that while diversity may be trending positively regarding gender — and making some progress with racial diversity — age is still a challenge in the not-for-profit board makeup. 

"We find that age is an area where many nonprofits simply do not have anybody under the age of 39 on their boards. And 39 is not necessarily young, but that just gives you a sense that board members tend to be much older than the average population," Osili said. 

As of 2021, the average age of the U.S. population is 38. When board members are such powerful pieces of the not-for-profit chessboard, organizations must commit to making their boards reflect the communities they serve. For these organizations to successfully do this, they must address some barriers young people face in obtaining these seats.

One such barrier is mandatory giving policies for their board members. According to a 2018 Board Source Survey, 68% of not-for-profit organizations have a policy requiring board members to make a personal contribution annually. It’s understandable that board members need to prove their commitment to the organization beyond attending board meetings, and a financial gift easily checks that box.

But consider this: In 2021 …

Life insurance policies are a great way to pass on a large sum of money to a beneficiary when the policy holder passes away. But one often overlooked strategy is using life insurance policies to make charitable donations. It’s a key strategy for nonprofit organizations to educate their donors about. 

 

Many donors do not realize that they can name a nonprofit organization as the beneficiary of a life insurance policy, which makes it possible to give a much bigger donation than the donor may have been able to contribute to the organization throughout their lifetime. Donors also can name more than one beneficiary, dividing the death benefit among loved ones and a charity. 

The first option is to name the charity as the beneficiary of the plan. This is the most direct and simplest approach. Doing this will give the organization the full benefit of the policy upon the policy holder’s passing.

It’s also possible to donate a life insurance policy that the policy holder already has by updating the policy’s beneficiary information. This type of transaction is irrevocable, meaning it is transferred to the charity completely and will automatically be excluded from any estate considerations. It’s strongly recommended that the donor notify the nonprofit organization of their beneficiary status. The donor also will likely need the organization’s Tax ID number, and inform the organization that it is a beneficiary.

The last option is to have the donor coordinate a plan with your organization. The organization can pay the premiums on behalf of the donor in exchange for the donor making contributions of an equal amount. This essentially does the same thing as the first option, but it guarantees the organization will receive the benefit because they’re paying the premiums — a sort of insurance on the insurance policy, if you will.

The Indianapolis Foundation, an affiliate of the Central Indiana Community Foundation, and Leadership Indianapolis have announced the recipients of the Mosaic Fellowship, a new initiative that aims to increase diversity on Indianapolis boards of directors so that they look and work differently. See recipients

The Indiana Housing and Community Development has issued a request for qualifications for experienced trainers to conduct community action training in non-profit governance, program support and capacity building. Deadline for applications is Jan. 10, 2022. See guidelines  Contact Tina Darling CSBG@ihcda.in.gov with questions.

United Way of Central Indiana has announced its policy agenda for the 2022 legislative session. The nonprofit’s advocacy work will prioritize three issues — early childhood education, housing and mental health — with the overall goal of supporting efforts that accelerate financial stability for individuals and families living in and near poverty. Read

TechSoup has announced important changes to the Microsoft Nonprofit Program. Microsoft is doing away with offering donated licenses to desktop products, starting April 4, 2022. Organizations will continue to have access to Microsoft cloud donation offers through TechSoup. Read the details

The Indiana Division of Mental Health and Addiction is providing free 24/7 support for confidential peer recovery support services, coaching sessions, referrals to local resources and general support for family members. Read

Charitable Advisors needs your feedback. What do you want from our job board? Please let us know by taking this quick survey.

Intro to peer growth groups webinar on Jan. 5, 2022, at 11 a.m. Learn the benefits of networking with peers outside your town or area of service. Peer groups are cohorts built around a common role or objective that meet regularly and confidentially. Presented by Nonprofit Hub. Cost: Free. Register

Interested in applying to law school? The IU McKinney School of Law is offering a virtual Juris Doctor information condensed session on Jan. 10, 2022, from noon-1 p.m. The one-hour session outlines the steps in the application process. Register

How can you craft a smart fundraising strategy for 2022 with so much still in flux? Gain invaluable insights on how to create a fundraising plan for growth and recovery webinar on Jan. 20 from 2-3:15 p.m. Presented by Chronicle of Philanthropy. Cost: $69. Register https://tinyurl.com/ys72k8sx

How to develop successful grant proposals pre-recorded webinar. In this workshop, you’ll learn about the grant application process and assess whether your organization is ready to apply for grants. Hosted by The Indianapolis Public Library. Cost: Free. Watch

5 steps to help your nonprofit run better, grow stronger & raise more money pre-recorded webinar. Learn the importance of having accurate data and actionable reporting for better decision-making. Presented by Nonprofit Hub. Cost: Free. Watch

Holiday assistance program: Caring for a Cause Supportive Services needs sponsors to adopt families in need. If you are interested in adopting a family and gift giving this year, contact Tamara Long Ajimati caringforacause2015@gmail.com or (317) 358-6450 for an application.

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