How women are changing the face of philanthropy

Women are the changing face of philanthropy.

Women across income levels and generations are more likely to give — and give more, says local author and retired chief executive officer of the United Way of East Central Iowa Lois Buntz.

More women are working than ever before and gaining more economic power. And an unprecedented amount of assets will shift into the hands of U.S. women in coming years in the midst of a massive intergenerational wealth transfer.

By 2030, American women are expected to control much of the $30 trillion in financial assets that baby boomers will possess — a potential wealth transfer that approaches the annual GDP of the United States, according to a 2020 study by the business consulting firm McKinsey & Company.

Women now control about a third — or more than $10 trillion — of total U.S. household assets, according to McKinsey. Men remain the financial decision-makers in two-thirds of households. But as male baby boomers die, they will leave control of their assets to their wives, who are typically younger and outlive men by an average of five years.

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Buntz received the 2024 Association of Professional Fundraisers and Skystone Partners Research Prize for her book “Gender and Generosity.” The book offers insights into the latest wave of women’s philanthropy and provides a summary of research and stories collected from interviews with more than 70 philanthropist and leaders.

Buntz spoke with The Gazette about her research into women's philanthropy.

Q: You state on your website that although women have tremendous wealth capacity, many companies and organizations have not tapped into this valuable resource. Why is that, and how important is the women’s philanthropy movement?

A: “It’s very important. In my book, I kind of outline we’ve had three waves of women’s philanthropy. And I think we’re on the verge of a fourth wave, which means to me that we’re going to see more and more women giving.

“I think a lot of nonprofits and fundraisers still don’t really look at what I would call the subset of donors. They don’t look at how maybe women give differently, or younger generations give differently or women of color give differently. And so we really need to look at our practices and make adaptations as we deal with different groups of donors. … But we’re missing, I think, a huge capacity because women will give more if they’re asked. And we have to approach them, I think, a bit differently than we do every other donor.”

Q: What are the key difference in terms of the motivations, expectations and aspirations that drive women philanthropists?

A: “Women are very interested in the impact of their gift. And so they really want to be involved in the development, creation of how the gift is going to be used. They want to be very knowledgeable. So for them it’s more than a transaction. … So I think fundraisers need to engage women earlier and give them a lot of information about what their gift is going to do, and invite them to participate in the creation of the end result, if that’s possible.

“Women also like to be social and collaborative in their giving. … It’s also why things like giving circles, where women collectively pool their money and then select a charity to give it to, are becoming extremely popular.”

Women also tend to give more frequently in smaller amounts spread out over many organizations, and give more to disaster relief, Buntz said.

Q: How do giving habits differ between older and younger donors, and how have they changed?

A: Buntz said younger generations are more tied to technology, feel more empowered to make financial decisions and are taking initiative to leverage their wealth in line with their values in ways women in previous generations have not.

“The younger generation, if you don’t reach out through technology, in addition to some personnel connections, you’re not going to capture them. They listen to their friends a lot more, and they want a lot of transparency.”

For nonprofits and community foundations, that means leveraging social media, email, text and online video conferencing to communicate with them personally and frequently, Buntz said.

Q: What are some practical tips, guidance and suggestions for fundraisers for how they should work with women donors and either enhance their current practice, or integrate women’s philanthropy into their current fundraising strategy?

A: Buntz encouraged fundraisers to develop a knowledge and awareness of women’s issues in their community and their giving practices, by surveying women donors and digging into their own data about their individual donors.

At United Way East Central Iowa, Buntz helped start a women’s giving group, launching a local chapter of Women United.

“We pulled together a number of women. … We had gatherings at women’s homes and asked them to actually prioritize what kind of community causes were of most concern to them.”

The group in Cedar Rapids focused on women's well-being and access to health care in Eastern Iowa. The group started out with 30 women asked to give an initial $500 minimum. From there, the group has grown to more than 300 women, raising $3.4 million over several years. The group has distributed money to a number of local health care organizations, helping women with prescription drug costs, free medical exams, doctor visit copays and purchasing diapers.

“Women came together, so there was a social element. … And then a select group decided how that money would be distributed. They were empowered to make the decisions. It wasn’t just the nonprofit staff.”

Buntz urged organization to assess their capacity and resources to build an effective and successful women’s philanthropy initiative, implement specific program elements gleaned from successful women’s philanthropy programs in the country, develop an effective stewardship program and define, evaluate and report outcomes.

Buntz also encouraged groups to analyze their communication strategies.

“Maybe we’re not talking about women as much as we should be” through promotional materials, she said.

Comments: (319) 398-8499; tom.barton@thegazette.com