The Great Wealth Transfer: Implications for Nonprofit Fundraising and the Role of AI

The nonprofit sector is on the cusp of a significant shift driven by the so-called “Great Wealth Transfer.” Over the coming decades, an estimated $84 trillion will be passed down from Baby Boomers to younger generations. This monumental transfer of wealth presents both opportunities and challenges for nonprofits. To successfully navigate this landscape, organizations must adapt their fundraising strategies, and artificial intelligence (AI) is poised to play a critical role. In this blog post, we’ll explore how the Great Wealth Transfer will impact nonprofit fundraising and how AI can help organizations maximize their potential during this unprecedented period.

1. Understanding the Great Wealth Transfer

The Great Wealth Transfer will have two primary components:

1. Generational wealth transfer to heirs (estate inheritance)
2. Donations to charity

While the focus of our analysis in this post is on the first category, it’s important to note that an estimated $6 trillion to $27 trillion of this transferred wealth could be donated to charity (according to Boston College’s Center on Wealth and Philanthropy). For ultra-high net worth families, estate tax exemption amounts will significantly decline in 2026, so many wealthy families are either a) allocating more to charity or b) planning ahead and transferring wealth to the next generation in 2024-2025.

Implication for Nonprofits: To capitalize on this transfer, nonprofits need to understand the preferences and values of the emerging generation of donors. Organizations also need to maintain always-on data insights, as wealth transfer events will be hard to predict, and can only be picked up with an investment in continuous enrichment with recently refreshed data. This topic was discussed in depth in Windfall’s recent Webinar on Fundraising During Economic Uncertainty.

2. The Changing Donor Landscape

As wealth changes hands, the donor landscape will evolve. Younger generations, who are digital natives, are more likely to engage with causes online and expect seamless, tech-savvy interactions with the organizations they support. They are also more inclined to use social media platforms to discover, vet, and share information about the causes they care about. Furthermore, they value experiences over transactions and are drawn to organizations that provide a sense of community and shared purpose.

It’s important to note that younger generations may not necessarily align with their parents’ philanthropic preferences when deciding where to direct their charitable giving. Unlike previous generations who may have followed in the philanthropic footsteps of their parents, Gen Xers and Millennials often choose to support causes that reflect their own personal values and passions. This generational shift underscores the need for nonprofits to not only understand the unique interests of younger donors but to apply AI and big data strategies to tease out signals that will allow these organizations to maintain relationships with the new generation of donors.

Implication for Nonprofits: Nonprofits must evolve to meet these expectations by enhancing their digital presence, utilizing social media effectively, and offering opportunities for meaningful engagement beyond financial contributions. This might include volunteer opportunities, events, and other forms of involvement that align with donors’ interests and values. Event teams should also leverage the power of data to inform strategies.

3. The Role of AI in Fundraising Strategy

As nonprofits navigate the Great Wealth Transfer, AI can help tailor fundraising strategies to the evolving donor landscape. Here’s how predictive AI and generative AI can be leveraged.

Use Cases for Predictive AI

• Donor Identification: Predictive AI analyzes donor behavior, giving patterns, and other 1st and 3rd party data, to identify high-potential donors within the younger generation. This allows nonprofits to prioritize outreach to individuals with the highest propensity to contribute at certain target levels (Windfall does this through bespoke Propensity to Give models).

• Predictive Audiences: Predictive AI can segment donors into specific audiences based on shared characteristics, behaviors, and giving potential. This allows nonprofits to target and personalize their messaging for each segment, improving the effectiveness of their campaigns.

• Proactive Donor Stewardship: Predictive AI can monitor donor engagement and alert organizations to potential signs of disengagement. This enables timely interventions to maintain relationships and encourage continued support.

Use Cases for Generative AI

• Generative Dossiers: AI can help organizations scale prospect research efforts. Predicated on a foundation of high-quality wealth screening and career data, LLM-generated dossiers can empower frontline fundraisers with the contextual information they need at scale.
• Personalized Communications: Generative AI can craft tailored content—such as emails, social media posts, and thank-you notes—that resonates with individual donors based on their unique preferences and values.
• Content Creation: Generative AI can automatically produce compelling campaign materials, including blog posts, social media updates, and visual content, ensuring consistency and relevance across all platforms.

For a deeper dive, check out our blog post on 5 Ways AI Empowers Nonprofit Fundraising Professionals.

4. Preparing for the Future

As the Great Wealth Transfer progresses, nonprofits must be proactive in adapting their fundraising strategies to meet the expectations of younger donors. This includes embracing digital transformation, leveraging AI tools, and cultivating a deep understanding of the values and motivations of the next generation of philanthropists.

Final Thoughts

The Great Wealth Transfer represents an unprecedented opportunity for nonprofits to adopt data driven fundraising strategies. By incorporating AI into fundraising strategies, organizations can gain valuable insights, engage donors on a deeper level, and create personalized experiences that resonate with a new generation of supporters. As we move into this new era of philanthropy, nonprofits that embrace AI and adapt to the evolving donor landscape will be best positioned to thrive.