In the November edition of The Evidence, Josephine Lethbridge delves into a significant global trend that is set to shape the future of charitable giving. With the rise of women’s wealth and their increasing participation in the workforce, the world is witnessing a historic shift in global wealth. This shift, known as the ‘Great Wealth Transfer’, is expected to see women inheriting trillions of dollars over the coming decades. The big question is – what will they do with it?
Traditionally, women have been excluded from the world of finance and wealth management. However, with more women taking on leadership roles in businesses and organizations, this is rapidly changing. According to a study by the Boston Consulting Group, women are expected to control around 32% of the world’s wealth by 2020. This is a significant increase from the 2015 figure of 30%.
The ‘Great Wealth Transfer’ is a result of several factors. One of the main reasons is the aging population, which means that a large number of baby boomers will be passing on their wealth to the next generation. Another factor is the increasing number of women who are choosing not to marry or have children, leading to them inheriting their parents’ wealth. Additionally, women are also earning more and inheriting from their spouses, further contributing to their growing wealth.
This trend has the potential to reshape the landscape of charitable giving. Traditionally, men have been the primary decision-makers when it comes to philanthropy. However, with the rise of women’s wealth, we can expect to see a significant change in this trend. Women tend to have a different approach to giving, focusing on issues that directly impact their communities and families. They are also more likely to support causes that align with their values and beliefs.
One of the key reasons for this shift is the concept of ‘womenomics’ – the idea that investing in women and girls can have a significant impact on economic growth and development. Studies have shown that when women have control over their finances, they tend to invest in their families and communities, leading to positive social and economic outcomes. This is why women’s philanthropy is often referred to as ‘smart philanthropy’.
With women set to inherit trillions of dollars, the potential for them to make a significant impact through philanthropy is immense. This is especially crucial in the current global scenario, where we are facing numerous challenges such as poverty, climate change, and social inequality. Women have the power to drive change and create a more equitable and sustainable world through their charitable giving.
However, for this potential to be realized, it is essential to address the barriers that prevent women from fully participating in philanthropy. These include gender stereotypes, lack of access to education and financial resources, and limited representation in decision-making positions. By breaking down these barriers, we can create an enabling environment for women to become active and influential philanthropists.
The rise of women’s wealth and their increasing role in philanthropy is a positive development that should be celebrated and encouraged. It is an opportunity to create a more inclusive and diverse philanthropic sector, where women’s voices and perspectives are valued and heard. Women have the power to drive change and make a significant impact on the world through their charitable giving. Let us support and empower them to do so.
In conclusion, the ‘Great Wealth Transfer’ is not just a shift in financial power, but also a shift in social and cultural norms. It is a chance for women to take charge and use their wealth for the greater good. As Josephine Lethbridge rightly points out, “The future of philanthropy is female.” Let us embrace this future and work towards creating a more equitable and compassionate world through women’s philanthropy.
