7 Ways To Be Philanthropic During Retirement

7 Ways To Be Philanthropic During Retirement

The number of retirees in the United States is growing rapidly. Ten thousand Baby Boomers will turn 65 every day through 2030, and those over 65 now represent 15 percent of the total population.

Our latest report from the Women’s Philanthropy Institute - How Women & Men Give Around Retirement - includes encouraging findings about this growing cohort from a philanthropy perspective. The report finds that while most households decrease their overall spending around retirement, they generally maintain charitable giving levels. This is true for married couples, single women and single men, although women and married couples tend to give more and more consistently than single men do. You can view the report’s key findings in this infographic.

These findings got me thinking about the myriad of ways that retirees can practice philanthropy — and, on the flipside, how the social sector can best engage retirees. Below, seven experts share their perspectives on this topic. My hope is these insights can help current and future retirees navigate their approach to philanthropy while also sparking ideas for fundraisers.

Join a giving circle.

We know from previous WPI research that giving circles are an increasingly popular way to give back, especially for women. Hali Lee, co-founder and managing director of Faces of Giving and founder of the Asian Women Giving Circle, says giving circles are ideal for retirees because they’re “informal, impactful, social and FUN!” Hali adds: “It’s certainly been my experience that as my Asian Women Giving Circle sisters reach retirement age, they’ve got even MORE time, energy and most importantly - their wealth and breadth of experiences -  to bring to the philanthropic table. They know more, do more, engage more and in many cases, give more. This research just adds to the body of knowledge out there that we are wise to on-ramp these energetic, knowledgeable, networked, smart retirees into our organizations, giving circles and movements. We will be all the stronger for it.”

Give your skills and time.

WPI’s report finds that single women and married couples are more likely than men to volunteer around retirement, with single women being the only group to actually increase volunteering. Marci Alboher, vice president at Encore.org, explains why volunteering is such a valuable way for retirees to give back: “Any conversation about giving should including giving of yourself -- your time, your skills, your experience, your connections. The older we get, the more of all of those things we accumulate. In addition to making an impact on an issue you care about, volunteering is one of the easiest ways to improve your mood, connect with others, and even stay healthy. If you're looking for a place to start, check out Encore.org, where you'll find a growing community of older changemakers committed to leaving the world better than they found it, and the Gen2Gen campaign, where all activism is intergenerational.”

Talk to your children and grandchildren about philanthropy.

Previous WPI research has emphasized the importance of talking to the next generation about philanthropy, and this is one of the most important things retirees can do to ensure a continued legacy of generosity. Ginny Esposito, president of the National Center for Family Philanthropy, agrees, noting that many philanthropists wait too long before engaging the next generation. “I joke that you should talk to children about giving the first time that they use the word ‘mine.’ The same way you ensure your children exercise their physical and intellectual muscles, you want to make sure they’re building character. This includes growing their capacity for compassion and empathy. In this way, it becomes a part of your family values that they will grow with and learn from. If you wait until they are adults, they have other priorities – career, family, their own interests – and aren’t as likely to embrace philanthropy as their own. So engage them early – and often!”

Consider a donor-advised fund.

The popularity of donor-advised funds continues to soar. Kim Laughton, President of Schwab Charitable, explains why: “Donor-advised funds (DAFs) are a simple solution for philanthropic retirees who are interested in maximizing their charitable impact while simultaneously lowering their tax bill. With a DAF, individuals can invest their philanthropic dollars for future growth and make grants to their favorite charities over time. Donors can contribute cash or appreciated investments to their account, and those who itemize receive a same-year tax deduction. Contributing non-cash assets that have been held for more than one year can be particularly impactful, as this allows donors to increase the amount available to charity by up 20% compared to selling the assets and donating the proceeds.”

Set up planned giving.

Planned giving can be another beneficial option for retirees. Claudine Donikian, President/CEO and Chief Marketing Officer at Pentera, says: “Planned gifts are wonderful and sometimes surprisingly effective way to be philanthropic in retirement because of their unique benefits.  Some planned gifts cost you nothing now—such as a bequest through an estate plan or a gift by beneficiary designation. Also attractive are charitable gift annuities because they provide income for life and can either be set up to start incomes payments later, and so be part of a retirement plan for the future, or can provide immediate income payments for those who are already retired.”

Start a DIY project in your community.

Retirees can draw on their experience, connections and passion to make a real difference on important issues in their community. Alison Bryant, Senior Vice President at AARP Research, says: “Starting a charitable project or giving back in your community is a true win-win opportunity.  Our AARP research has consistently shown that engaging in community activity and volunteer projects post-retirement can directly benefit the giver as well as the givee, by providing social connection and its psychological benefits to both.” AARP’s website includes helpful resources for anyone looking to launch a charitable project. Facebook Fundraising is another effective way for retirees to raise funds for a local nonprofit initiative.

Build philanthropy into your financial planning.

Sallie Krawcheck, CEO and co-founder of Ellevest, says that her clients have been proactive about building impact into their financial and general retirement planning. "The WPI study certainly confirms what we're seeing among women clients -- which is that they very naturally 'get it' when it comes to making the connection between investing and philanthropic giving for social impact. Women's authentic desire to do well by doing good continues to manifest in retirement through more direct engagement either as volunteer, fundraiser and board membership, where they can put their business chops to use in a very personal way."

As the number of retirees continues to grow, it will be interesting to see how this community engages with both new and traditional models of philanthropy. What do you think? How will you or are you practicing philanthropy in retirement? If you work in the social sector, how do you plan to engage retirees in particular with your mission? Share your thoughts below.

 


Karen Ferriere, CFRE

Development Director at Save Mount Diablo

5y

Excellent article.  Thank you.

Patricia Jackson

Experienced and joyful advancement professional

5y

So proud of all the good work the Women’s Philanthropy Institute continues to provide to the field.  I will use this latest study this morning as I teach a course on Wonen’s Philanthropy at the CASE Summer Institute!

Elena Fracchia, MPA, CWS®, CEPA™

Strategic Advisor | Social Impact & Philanthropy | Passionate Educator

5y

Diving into this today. Thanks for publishing! It will be a great help to many.

Single women for another philanthropic win! They continue to give in retirement and increase their volunteering hours. I hold rich anecdotal evidence to this effect, but this research now demonstrates the positive trends. Nice one (again), WPI!

Andrea Pactor

RETIRED, Associate Director at Women's Philanthropy Institute

5y
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