It has been well documented that volunteers make solid donors. There has also long been the belief that people who are retired are more likely to give to charity. Well, only one of those ideas is correct according to new data from Fidelity Charitable.

In a survey of adults ages 50 to 80, pre-retires outpaced retirees in volunteering during the prior 12 months at 71% for pre-retirees and 55% for retirees even though the likelihood of giving is roughly the same.

More than half of the pre-retirees (56%) and retirees (59%) surveyed gave $1,000 or more to IRS-qualified charities during 2023, with pre-retirees and retirees giving in similar amounts, with 65% of those surveyed reporting giving between $500 and $1,999.

The data can be found in Fidelity Charitable’s report “Charitable Living
And The New Retirement.” The report is based on research conducted in March and April 2024 by Artemis Strategy Group, an independent research firm. It surveyed 2,512 donors ages 50 to 80, including 844 donors with investable assets of at least $1 million. To qualify, respondents must have contributed at least $500 per year to charitable organizations and make household giving decisions.  

Retirees are actively giving back through volunteerism, often dedicating significant time and experiencing meaningful benefits, while pre-retirees show even stronger intentions to volunteer, potentially suggesting a positive generational trend for the future of philanthropy, according to the report’s authors. 

Retirees who volunteer are committed to their causes. Of those who volunteer, more than one in four (27%) report doing so for 13 hours or more each month. Retirees are more likely to donate as a first step to volunteering while pre-retirees volunteer or donate first in nearly equal measure. 

While volunteer participation declines with age, from 73% for those ages 50-59 compared to 61% for those ages 60-69 and 54% for ages 70-80, volunteering is reported to help the mind and body. Nearly nine in 10 retired respondents who currently volunteer agree that volunteering is a way to remain active (88%) and connected (91%). 

Similar to the desire to stay active through volunteerism, many pre-retirees plan to gradually reduce their work hours rather than retiring outright, allowing them to stay engaged and fulfilled. 

Those surveyed have awareness of vehicles or methods that can be used to financially support charities. Bequests topped the list of vehicles skewing upward for high-net worth donors (64%) and 58% for retirees and 50% for pre-retirees. Putting charities in a will was not as popular, with 47% overall having done so and 55% of high-net worth donors knowing about it. Retirees are six points more likely than pre-retirees 50% to 44% when it comes to awareness about adding a charity to a will.

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Source From Non Profit Times