Wealth Transfer Faces Questions
Written by: Jerry F. Smith - CEO & Founder
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For years, fundraisers and financial professionals have talked about the “Great Wealth Transfer”—the projected movement of an estimated $124 trillion from older generations to younger Americans.
But how much of that wealth will actually reach the next generation?
In a July 16, 2026, USA Today article, Daniel de Vise highlights a new report that raises that question. “Baby Boomers alone are estimated to hold approximately $93 trillion in assets. Yet much of that wealth may be reduced before it is ever inherited. Retirement expenses, health care and long-term care costs, debt repayment, taxes, and other obligations will all affect the final amount passed on to heirs.
After accounting for those expenses, the report estimates that about $36 trillion could transfer to Generation X and Millennial heirs over the next 20 years. Much of that amount, however, is expected to go to individuals who are already financially secure.
The report further estimates that $36 trillion in inherited wealth could generate approximately $8 trillion in consumer spending—on items such as automobiles, travel, housing, and dining.”
That leaves roughly $28 trillion that could be saved, invested, or potentially directed toward charitable causes.
While no one can predict precisely how these dollars will be spent or invested, the implications for philanthropy are significant. Generation X—those born between 1965 and 1980—and Millennials—those born between 1981 and 1996—may become the wealthiest generations in history as assets transfer from the Silent and Boomer generations.
What Does This Mean for Fundraisers?
1. Continue focusing on Baby Boomers. Baby Boomers still hold the overwhelming majority of wealth in the US. They remain essential prospects for annual giving, major gifts, and planned gifts. Fundraisers should continue building meaningful relationships with this generation while helping donors consider the legacy they wish to leave for both their families and the causes they value.
2. Begin building relationships with Generation X and Millennials. Gen Xers and Millennials should not be viewed only as future donors. Many are currently in their peak earning, leadership, and family-building years. They may be giving at more modest levels today, but they can become volunteers, board members, recurring donors, and future major-gift supporters. I believe if you get people involved in your organization, they become committed and the dollars follow their commitment.
3. Do not wait for an inheritance event. Organizations that wait until wealth changes hands may find themselves competing with every other nonprofit for the attention of newly affluent donors. The best time to earn trust is now—before a prospective donor receives an inheritance or experiences a major increase in capacity.
4. Build multigenerational philanthropy. When appropriate, engage donor families in conversations about shared values, community impact, volunteering, and legacy. Strong multigenerational relationships can help an organization remain relevant as charitable decision-making moves from one generation to the next.
The Great Wealth Transfer may not unfold exactly as projected, and not all inherited wealth will become charitable gifts. Still, the broader trend is clear: the next generation of donors is being formed today. Fundraisers who invest in authentic, long-term relationships with Gen X and Millennial supporters will be better positioned to earn their trust—and their future philanthropic support.
