BABY BOOMERS AND NOT-FOR-PROFITS

by Ashley Jones, CPA - Senior Accountant

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In 2014, the youngest members of the baby boomer generation (born between 1946 and 1964) will celebrate their 50th birthdays. We should consider the impact this aging generation, which makes up approximately 28 percent of the US population, may have on not-for-profits from a workforce perspective.

First we should consider the major events experienced by this population and how these events helped shape their work characteristics. Baby boomers experienced post World War II growth and prosperity, civil rights movements, the introduction of the US space program, the cold war, the Vietnam War and many other historic events. These events influenced this generation to be more optimistic, more accepting of diversity, more focused on individual choice and freedom and more involved with their community.

Although current economic conditions indicate that Americans will work longer before retirement, a poll (conducted by Plan Sponsor Council of America) of not-for-profit organizations shows an expected 10 to 20 percent of their workforce will retire during the next five years. A separate poll by the Employee Benefit Research Institute reveals the largest group of workers retire at age 62, with only 14 percent of retirees retiring after 65.

So what are these younger retirees doing to stay active and supplement their income while leaving the job world? It appears the answer could be starting their own not-for-profit businesses. A research study performed by Encore.org determined that 25 percent of Americans between the ages of 44 and 70 are considering founding their own business or not-for-profit organization. This study seems to be partially validated by the fact that the Kauffman Foundation found 23.4 percent of companies in 2012 were started by people between the ages of 55 and 64.

While the baby boomer generation may be approaching retirement age, their life experiences, work ethics and community involvement may lead to the creation of more not-for-profit organizations in the years after their typical careers.

Sources: http://www.ohioscpa.com/publications/news/2014/01/07/nonprofits-facing-retirement-boom (* Link removed by www.ohioscpa.com)

http://nonprofitquarterly.org/policysocial-context/23510-kauffman-foundation-over-50s-looking-at-np-and-fp-startups-as-next-step.html

http://www.uiowa.edu/~nrcfcp/training/documents/Participant%20Packet%20Intergen%20Dynamics.pdf

http://www.babyboomers.com/strapped-for-retirement-more-hope-to-work-longer/44418/

http://www.valueoptions.com/spotlight_YIW/baby_boomers.htm

http://www.bbhq.com/bomrstat.htm