How many Millennial Millionaires are on your Board?
Do you think that your Board composition is as it should be? Do you think that young people don’t need to be on the Board because they aren’t big donors? Think again.
A November 2019 Coldwell Banker report tells us that there were 618K Millennial Millionaires in the US as of that time. With the current pace of people becoming millionaires in the US over the last 2.5 years increasing dramatically — even in 2021 over 2020 — we can expect that the 618K number is probably close to (or exceeding) 700K.
In fact, a recent chart from the Federal Reserve tells us that U.S. Millennial wealth more than doubled since \COVID-19 started — from $4.55 trillion Q4 2019 to $9.13 trillion by the Q4 2021. If the Coldwell Banker report was updated today, it’s likely that the number of US Millennial Millionaires is now over 1.2 Million (assuming that the millionaire piece of that increased at the same or a greater pace than the rest.)
The CB report goes on to tell us that the average age of Millennial Millionaires is 34, and 60-80% of all US millionaires are, as Esther Choy calls them, FGWs (First Generation Wealthy). (You might want to read that again — the Great Gatsby’s "nouveau riche/new money” being tacky and low-level appears to now be an arcane concept.)
So why is this age group almost completely ignored by nonprofit Boards of Directors? Why, with a push toward diversity on boards, are Millennial Millionaires rarely even part of the discussion about Board development?
I hear the same comments over and over again about not considering Millennials for a board seat. Here are the most common ones:
“Millennials are slackers. They’re lazy and entitled. Why would we want one (or more) on our Board?”
Response: First, this is offensive and Why wouldn’t you want them on your board? They’re the future of your organization, and your board must reflect your constituencies. Saying that you welcome younger people, without having one or more on you Board, sounds insincere…)
“We’re so forward-thinking that we have a Board just for the Millennials. It’s called the “Junior Board”. (My answer to that is always “the Kid’s Table” isn’t a substitution for a diversified Board.)
Response: Junior Boards may be appropriate in some instances for some young people, but they still shouldn’t be a way to exclude Millennials from the “Big Board”.
“Oh — I understand why we should have a Millennial on our Board of Directors. It’s so that we can engage the young person (Millennial) so that they’ll go home and get their parents to give us money!”
Response: This answer is just offensive. No matter the Board Member’s age, they shouldn’t be thought of only as a link to another person.
“What could a 20 or 30-year-old possibly contribute to our Board?”
Response: Perhaps they could contribute another point of view beyond your homogenous Board makeup that likely doesn’t fully represent your constituents, volunteers, or future?
“Millennial-age people don’t have the money to meet our giving (or give and get) requirements. We’d have to give them a special “deal” that wouldn’t be fair to the others”.
Response: See any definition of “Millionaire”, and note that most of the Millennial Millionaires have between $1M and 2.5MM of assets. A special “deal” is suggesting that their money isn’t as green as other donors’ money.
“We need to focus on diversity now. We can’t be bothered with this issue.”
Response: Great news! You can have many different kinds of diversity on your board, including age diversity. You can even have, for example, a 30-year-old woman of color!
It must be said that absolutely no group should be ignored solely on the basis of age. Regardless of resources, everyone has something to offer. Are they right for your board? Maybe, maybe not. Could they be a volunteer for your organization, and some type of donor as well? If someone is engaged with your nonprofit and your mission, deciding if you engage with them solely based on a wealth engine profile is callous, unfair, and is more than likely to actually damage the long-term health of your organization.
I’m Saving Giving by providing a clear path to success, supported by data, statistics, and interviews. You can find more great newsletters like this one here on Philanthropy 451, in my bestselling book, Philanthropy Revolution, or on Twitter, and LinkedIn to learn more.
Also, don’t miss this event tomorrow - Summit Fundraising Virtual Power Half Hour on May 11th with my friend Louise Morris as we discuss Approaching Major Donors without Fear. If you’re in the Pasadena area on May 18th, please join me at Red Hen Press for A Conversation and Celebration with Lisa Greer and Kate Gale and I’ll be signing copies of Philanthropy Revolution.
- Lisa
Like all attempts at diversifying (a board, a company, a city, etc.), too often the ones who are already there tend to want the newbies to adapt fully with the appropriate kowtowing to tradition. A dynamic organization is one that is never set in its ways. Excellent piece...again!
Wise counsel.... my instincts say to bring younger people to the board. Thanks for bringing the words to my thoughts Lisa!