Why The Church will miss out on the "Great Wealth Transfer"
Baby Boomers, the generation of people born between 1944 and 1964, are expected to transfer $30 to $40 trillion in wealth to younger generations over the next many years. This jaw-dropping amount has led many journalists and financial experts to refer to the gradual event as the "great wealth transfer."
The "great wealth transfer," is well on its way, as Baby Boomers have been turning 65 years old at a rate of 10,000 per day since 2011. By 2030 all 70+ million Baby Boomers will have turned 65, with the oldest ones approaching their mid-80's. Current life expectancy in the US is around 79 years old. Analysts predict that as much as $8 to $9 trillion will transfer by 2027, that's just in the next seven years, with an additional $30 trillion in the years to follow.
Most of the wealth people possess is held in non-cash or non-liquid assets, an estimated 90%. Of all this wealth, a significant portion will transfer. The question is, who will receive those assets? Unfortunately, it looks like very little of that transfer will end up going to churches or kingdom causes.
Church Giving Statistics
Christians are giving 2.5% of income.
Tither's make up only 10-25% of a normal congregation.
37% of regular church attendees and Evangelicals don't give money to a church.
17% of American families have reduced the amount that they give to their local church.
7% of churchgoers have dropped regular giving by 20% or more.
For families making 75K+, 1% of them gave at least 10% in tithing.
It's clear; there's a BIG disconnect concerning giving among Christians. The above statistics should worry every pastor because it represents more than just money. Giving or the lack thereof, perhaps more than anything else, reveals our genuine commitment to God and his kingdom, whether we are building his kingdom or our own (Luke 12:16-21; Matthew 6:19-21). This is an issue of the heart, and one spiritual leaders should be addressing.
When looking at giving, especially giving to churches, Greatest Gen and Baby Boomers give the most when compared to other generation types. This is noteworthy, especially as it concerns future giving. Not only are these people the giving majority supporting churches today, but they are also the ones who hold the vast resources that will pass on during the "great wealth transfer." Unfortunately, this transfer will occur with little to no direction, resulting in waste and missed opportunities.
As Greatest Gen and Baby Boomers pass away, their estates will be divided among those left behind. But, because a majority of Americans, an estimated 60-65%, die without a will or a trust, this lack of planning will have several negative implications for their estates and their heirs.
Probate will eat up 5-8%.
Taxes for large estates will eat up another significant portion.
Increase in the possibility of family feuding resulting in damaged or broken relationships.
Most important - No direction for giving from an estate will likely result in no charitable contributions made to kingdom causes.
These implications are even more significant when you consider that legacy or estate gifts are almost always the largest gifts donors will make. One review of 10 years of IRS data found that a typical bequest averages nearly three times a person's total lifetime charitable giving. In other words, most Christians will make their largest charitable gift when they die, totaling almost three times what they've given throughout their lifetime. Unfortunately, due to a lack of education and the proper estate plan, the majority of them will have wasted their gift.
What The Church must do differently
If you want to take a proactive approach to solve this issue, Financial Planning Ministry provides a turn-key ministry process that's affordable and effective. They've served tens of thousands of families with their estate planning needs, and to date have documented more than $1.5 billion in bequests to their partner organizations.
Although God's word has plenty to say about money, wealth, and possessions, few church leaders teach on the topic. A lack of Biblical financial discipleship has left most Christians without the spiritual and practical wisdom to live as good and generous stewards. And the predictable outlook for the Church, as the giving trends attest, is that its financial future isn't looking too good.
Another alarming trend is that since the 1980s, giving to religious organizations has gone from 58% of all charitable contributions to just 29%. While giving to philanthropic causes continues to increase, giving to religious organizations continues to decrease.
The Church can reverse this course by being faithful to financial discipleship.
As people learn and apply God's financial principles to all their decisions, good stewardship and generosity will become a reality among God's people. If this occurs, there's good reason to be hopeful that some of the wealth being transferred in the next 30 years will go to worthy kingdom causes.
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