Gen X has the willpower charities need

Posted on 28 Aug 2024

By Ashley Rowthorn, CEO, Legacy Futures

Generational shifts are reshaping charitable giving in Australia.

My company’s research, commissioned by Include a Charity and drawing on 2300 respondents, confirms Generation X’s growing interest in philanthropy.

This generation, aged 43 to 58, married and had children later than previous generations, and partly for those reasons is increasingly open to leaving money to charities in their wills.

Charitable bequests to the top 150 charities are currently estimated at $1.6 billion a year, but that is expected to triple by 2050, aligning with the goals of the Productivity Commission’s inquiry into philanthropic giving and the government’s push to increase charitable donations and to double philanthropy by 2030.

Gen Xers are the most generous of us

Despite career pressures and mortgage commitments, Gen Xers are now more likely than their Boomer ancestors to leave gifts in their wills, with one third considering it, compared to a quarter of the general public.

Reasons include Gen X’s awareness of global issues and connections to charitable causes. Younger generations see wills as “theoretical”, whereas Gen X is more engaged in planning for death.

As the demographic shift towards older first-time parenthood, smaller families and later life milestones continues, Gen X is set to lead the charge in giving money in their wills.

People without children are more inclined to consider leaving charitable bequests, with 43% of Gen Xers without children either having already written a bequest into their will or open to the possibility.

Sexual orientation also influences attitudes to bequests in wills, with more LGBTQ+ individuals open to it (23%) than heterosexuals (15%).

If charities want to increase bequests, they need to focus on the positive impact of their work, and to communicate that clearly."

What should charities do to increase bequests?

The current economic climate is causing many people to postpone will-making commitments and to adopt a “wait and see” approach.

If charities want to increase bequests, they need to focus on the positive impact of their work, and to communicate that clearly. This means emphasising that gifts are long-term investments with enduring commitments, to alleviate givers’ concerns about rising costs and future financial needs.

The Include a Charity campaign next week (2–8 September) will focus on how a donor can leave a meaningful legacy, with the message playing out through social media, traditional media and charity members.

Each year, Include a Charity Week encourages Australians to pledge a gift in their will

More than 100 charities participate nationwide, with the theme for this year "Be the Spark," reinforcing the idea of a future-proofing act of leaving a charitable gift.

Beyond the week, charities need to adapt their marketing strategies to resonate with Gen Xers at key stages of their life, from early parenthood to retirement.

As Include a Charity campaign director Helen Beeby has said, Gen Xers have a great combination of both financial stability and social consciousness.

It’s up to charities to highlight the connections between their charitable values and the lives of Gen Xers who have witnessed rapid global change and truly understand the value of making a difference.