The topic of legacy fundraising or legacy marketing is an important segment in the fundraising of non-profit organizations. It has been clear to all interested parties for many years that large amounts of money are made available for charitable purposes in the area of estates.
In fact, the numbers are very impressive. Over 102 billion euros are inherited in Germany every year. Over 20 million people in Germany will be over 65 years old by 2030. An unprecedented number of potential testators.
Time for a change? Or still the same old story? 30 percent of global assets will be handed over to NextGEN in the next few years.
Great fortunes change hands
But it is not just through inheritance that large fortunes are passed on. Four percent of all family businesses are handed over annually, which is around 120,000 companies. Globally, international studies say 30% of wealth is passed on to the next generation.
Impressive figures, which are used as an opportunity by non-profit organizations to focus more on legacy fundraising. And rightly so, because despite all the successes to date, the available volume has not yet been transferred to civil society to a relevant extent.
From this volume, around 300 million euros will be passed on to non-profit organizations in Germany. A nice number, but compared to the 5 billion euros provided by normal donors, only a small addition of 6 percent. Measured against the 102 billion euros, it is only 0.3% of the inherited assets.
What remains of the record assets?
Around 300 million are bequeathed to charitable organizations.
Apparently, very little of private wealth reaches civil society. There are various reasons for this, in particular the area of impact investing is continuously growing and has long since overtaken pure philanthropy. Last year, 38.9 billion euros were invested in impact investing in Germany, i.e. significantly more than three times the total fundraising volume in Germany of an estimated 12 billion euros.
This is how the German Fundraising Association looks at its potential for the future.
Conclusion and recommendation
There is still untapped potential in the fundraising market. Because only a small proportion of assets find their way into civil society. Since the competition for normal donations is increasing and the donor base is getting older, a reorientation towards the philanthropy donor group is advisable. The generation of heirs in particular should come into contact with non-profit actors at an early stage.
Andreas Schiemenz has been managing director at Schomerus – Consulting for Social Engagement GmbH since 2017, responsible for strategy consulting for non-profit clubs, organizations, foundations and associations as well as philanthropy consulting for entrepreneurs and wealthy private individuals. Previously, he was responsible for Philanthropy & Foundations at HSH Nordbank AG. The economist and passionate fundraiser has 40 years of experience in NPOs, foundations and companies with social commitment. In autumn 2015 he published the sales manual for fundraisers: “The personal conversation: Fundraising through persuasion” by Springer Gabler.
2024-03-05 03:10:14
#Estate #fundraising #money #sector #create #Hamburg #create #Hamburg
