The Great Millennial Wealth Transfer is Coming

We are on the verge of the greatest transfer of wealth in history. $30 trillion dollars are set to be inherited by millennials over the next three decades. 93% of these millennials state that a company’s social impact is integral to their decision whether to invest.

Meanwhile, in the charitable market, there are conflicting forces at work creating a significant problem. One one side, charities and social enterprises are perpetually under-capitalized, due to higher regulations which make banks unwilling and unable to lend to such organizations. In stark contrast to the issues of under-capitalization, there is an untapped wealth of under-utilized philanthropic capital of at least $650 billion which is sitting idle. This ranges from the endowments of foundations, forgotten trust accounts, or surpluses accumulated by some of the more prominent charities.

Clearly, there is a gap in the philanthropic market that needs to be addressed, and there is a large population of individuals ready to allocate their wealth to help. So why isn’t more being done?

SharedImpact was created five years ago to help allocate this pool of idle philanthropic capital more efficiently through innovative impact investments, while enabling corporations to design their own stream-lined way to give, without the operational headache. To date, we’ve facilitated grants and investments to over 500 organizations across more than 100 countries, and have worked with over forty institutions to create tailored solutions.

At SharedImpact, we believe true philanthropy requires a disruptive mindset, innovative thinking, and a bias for action. That’s why we’re launching this blog, where we’ll touch on a variety of topics across the impact investment sector. We’re going to start with a multi-part series which seeks to answer a question that has bugged us for awhile: Why have so few financial institutions, particularly those in the hedge fund space, reacted to such a clear wave of desire from millennial investors?

As Victor Hugo said, “Nothing is more powerful than an idea whose time has come.” Our time is now.