You may already be aware that the greatest transfer of wealth in history is underway. By 2048, more money than ever before will have passed from one generation to the next. And how that transfer affects your family depends largely on one thing: intentional conversations.
When heirs aren’t prepared, disagreement and division may follow. But when families start talking, the transfer becomes smoother, more purposeful, and far more likely to leave a lasting legacy. What does it really take to pass generosity from one generation to the next? That’s a question NCF set out to answer in our comprehensive research report on Next Gen stewardship.
The report explores the unique motivations, values, and dreams of the next generation of givers, while also pointing out key factors that influence how differently generations can view wealth. It also reveals the deeply human complexities that shape how families talk about money, what they’ll pass down, and what stumbling blocks may stand in the way of transferring it well.
A valuable conversation
How can families overcome those stumbling blocks? How can you ensure your heirs are informed and prepared, not just to receive the wealth being handed down but to carry on the legacy of giving handed down with it?
The answer is a conversation, says Ian Noyes, NCF’s California’s Director of the Central Coast and Bay Area. “When families choose to talk about wealth and legacy, things change for the better through every generation.” In his experience working with families to build a generous legacy, Ian has seen the way intentional conversations can create healthier transfers of both wealth and values.
“A strategic conversation will help develop confidence in how the wealth will be used as it’s passed down. It deepens a family’s convictions about their values and the impact they hope to make with their money.”
5 big questions
How does a family start that conversation? These five questions from our Next Gen stewardship research can help your family navigate the conversation about family wealth, inheritance, and the legacy you want to leave.
- What’s our family purpose?
Across generations and ranking above all other motivation is the desire to give with a sense of purpose. More than 30 percent of Next Gen givers surveyed in our research indicated they wanted to find a greater purpose for their wealth – a sentiment that aligns with their parents. “The reality is, there’s a lot of alignment across generations,” Ian says. “Money is only going to amplify purpose, so it’s important to define it together before you attempt to accelerate it with your giving down the generational line.” Choosing to pursue a shared purpose for family wealth and giving can unite your family through conversation. Creating a mission statement for your family can help you find those hints of purpose and align the legacy of your family’s wealth around it. - How can we work with like-minded people and organizations?
Most of the Christian givers we talked with believe transformation happens best in community. They want to pool their resources with others to have a greater impact on the causes they care about. This, too, is a belief that bridges generational divides, with 87 percent of Millennial and Gen Z and 75 percent of those in older generations expressing an interest in collaborative giving. That’s why Ian suggests including opportunities for giving in community in the conversation about how your family’s wealth will be used. “That desire to do good is so evident in the younger generations,” he says. “They want to be personally engaged with not just who they’re giving to but who they’re giving alongside. So, it’s wise to make finding and giving with a like-minded community part of the conversation.” Vetting organizations where they can find a community of fellow givers or encouraging your heirs to get involved with a giving circle can help make collaborative giving a part of your family’s legacy. - What family values do we want our giving to continue to reflect?
Older Christian givers want their legacy to be more than just financial. They hope their values will be passed down along with their assets. In order to see that happen, those values have to be articulated and understood by the family. “Families have to get really clear on the values that are guiding their life and legacy,” Ian says. “It’s not just about your heirs understanding your values; it’s also about you understanding their values. A conversation about that will help you see where real value alignment can happen across the generational divide.” As a family, work to discover your core values and ensure your purpose, as well as your giving, are aligned with them. Then, work together to create a plan that allows you all to give with those values in mind. - How can we be effective and strategic with our giving?
Consider what it might look like to make giving easier for your heirs. With 16 percent of the next generation saying they want their giving to be effective and strategic, incorporating solutions that do that into your conversation can help them step into a giving strategy that works. “Be clear about what you’re inviting your heirs into in terms of strategy,” Ian says. “Talk about what has made giving effective for you. Ask them to share what they think might make giving even more strategic and effective as the wealth is passed down.”Learning more about NCF’s Giving Strategy™ can help guide this conversation. Talk with your local NCF team, who can help you create an effective strategy that will work for your whole family as wealth is passed down. - How can we ensure we’re good stewards?
About 95 percent of Next Gens surveyed say they see themselves as stewards of what God gives them – their inherited wealth included. That perspective is the driving force for almost half of the next generation of givers surveyed in our research who say they care deeply about stewarding their resources well. “Getting on the same page about what stewardship means for your family is a great starting place,” Ian says. “Talk about what you’re stewarding and what you’re stewarding it for. Then, open the door to the bigger questions of what it looks like practically to use the money you have in a way that brings real kingdom impact.”By starting a multigenerational, faith-filled conversation about everything your family has been entrusted with, you’re helping build common ground for generations to come.
For more resources or help hosting a family meeting, contact your local NCF team.
