Baby Boomers Offer Challenges,
Opportunities For Nonprofits

By Tim McCormick, Vice President
Cleveland

Being in the middle of the pack of the Baby Boom Generation, I have watched with great interest the predictions about trends that will come into play as this group retires from the workforce.

The current information indicates that, starting in 2008 and continuing for the next 20 years, up to 60% of the current workforce will retire. This trend will have many implications for all aspects of our society. Nonprofits can position themselves to benefit greatly from the large number of individuals who will be looking to reallocate their resources of time and money. In order to maximize the potential benefits, organizations will need to pay close attention to the trends and be able react quickly when outside factors impact the rate at which the changes will be occurring.

For example, you could be looking at demographic information for your area which indicates that the average retirement age is 62.5 years old. There are number of factors that could move the retirement age upward, which would in turn impact your fundraising or programming plans for retirees. These factors could be anything from people having children later in life, having to care for aging parents, losing market value in their retirement portfolios, or starting second careers. Again, the important thing is to monitor what is happening with the trends and be able to move quickly to meet the emerging needs.

A practical application would be looking at the change in trends for people aged 55 to 64, who in the last year have shown a marked increase in their perception that it easier for them to donate money instead volunteering for charitable organizations. This information comes from an article in The Chronicle of Philanthropy, reporting on a study conducted by Thrivent Financial for Lutherans.

The study found that in 2005, 50% of adults said it was easier to give money than to volunteer. This was an increase from 37% the previous year. According to the study, this change in view was most pronounced among those who were aged 55 to 64.

If you are a development director, this may present an unprecedented opportunity to increase your annual fund results by focusing more of your efforts in reaching this part of your constituency. On the other hand, if you are a program director who was counting on using middle-aged volunteers in your programs, you are going to find it more difficult to recruit them.

In the past, nonprofits have been reluctant to move beyond the “tried and true” approach when addressing trends like what we see coming with the Baby Boomers. Today there are more and more organizations are seeking philanthropic support. In today’s climate, the successful nonprofits will be those that can monitor trends, generate responses that are consistent with their mission, and then implement those responses quickly and effectively.