There’s a great wealth transfer I don’t see anyone talking about. I know we’ve been hearing a lot about the great wealth transfer: The trillions of dollars being shifted into new hands as the baby boomer generation passes their wealth down to their children, but another great wealth transfer is taking place. This one, into the hands of women.
Women increasingly controlling wealth
According to the WHO, women tend to outlive their husbands—5 years on average. Women who used to feel stuck in unhappy marriages are now more willing to pull the rip cord. More women are reaching the highest levels of corporate ladders or building their own companies. All of this is leading to more women controlling more wealth than ever before.
And what happens when women are in control of wealth? They tend to give it away in much greater percentages than men.
Women giving billions
The Women’s Philanthropy Institute at Indiana University has consistently found women are more likely to give to charity, at all income levels. And they give not only more frequently, but give a higher proportion of their wealth. This isn’t new. But what is new is the amount of wealth they have to deploy toward those causes.
You’re starting to see it everywhere. Melinda French Gates announced a $1 billion donation advancing reproductive rights shortly after her divorce. Dr Ruth Gottesman gave a billion dollars to the Alfred Einstein College of Medicine to make tuition free in perpetuity 18 months after her husband passed away. MacKenzie Scott has given away $16 billion in the five years since her divorce from Jeff Bezos. Self-made billionaire Taylor Swift has donated uncounted millions to food banks in every city where her Eras tour stops. It’s particularly worth noting that these donations are directly to operating charities, not to private foundations that will dole it out 5% at a time as has been standard practice for generations.
To sum it up
Our industry should be prepared for this shift. As more women acquire wealth, the legacy paradigm of “wealth preservation” as the prime directive will need to adapt. These women are going to want to deploy their wealth in ways that create more impact in their communities and the world at large.
About Sharon Schneider Sharon Schneider is an entrepreneur, philanthropy expert and strategy consultant to the next generation of social impact founders, businesses and family offices, including Giving Pledge signatories, Forbes 100 members, private foundations, and single-family offices.