A Merrill Lynch study, conducted in partnership with Age Wave, finds that the 40 million family caregivers in the U.S. spend $190 billion per year on their adult care recipients. Despite the financial, emotional and functional challenges in this life stage, preserving the dignity of their loved one is their primary goal. The vast majority of caregivers (91 percent) are grateful they could be there to provide care, and 77 percent say they “would gladly do so again.”
“As tens of millions of people take on caregiving responsibilities each year, supporting those caring for our aging population has become one of the most pressing financial issues of our lifetime”
Family caregivers are America’s other social security, providing the bulk of long-term care today. The aging of the baby boomers will result in unprecedented numbers of people in America needing care. As a caregiving crunch is upon us, “The Journey of Caregiving: Honor, Responsibility and Financial Complexity” offers an in-depth look at Americans’ financial and emotional journeys during this life stage. This study marks the beginning of a new, multiyear research series from Merrill Lynch and Age Wave that will examine five distinct life stages: early adulthood, parenting, caregiving, widowhood, and end of life.
As the first of the series, this study examines the responsibilities, sacrifices, and rewards of caregiving – a life stage that nearly all Americans will participate in, as a caregiver, care recipient or both. This study comprehensively explores the topic of financial caregivers – a role largely unexamined, yet held by 92 percent of caregivers. Financial caregiving involves contributing to the costs of care and/or coordinating or managing finances for a care recipient.
The study is based on a nationwide sample of more than 2,200 respondents, including 2,010 caregivers. Key findings about their caregiving journey include: Paying bills from their recipient’s account (65 percent), Monitoring bank accounts (53 percent), Handling insurance claims (47 percent), Filing taxes (41 percent), Managing invested assets (21 percent).
- Much more than hands-on care. Providing emotional support (98 percent), financial caregiving (92 percent), household support (92 percent) and care coordination (79 percent) far outweigh physical care (64 percent).
- Financial costs – with little discussion of their ramifications. Seventy-five percent of financial contributors and their care recipients have not discussed the financial impacts of these contributions.
- Caregiving for a spouse vs. for a parent. A spouse is 3.5 times more likely to be the sole caregiver looking after a care recipient and is more likely to spend more out of pocket on care-related costs. Their caregiving journey is also different in terms of the obligations and financial interdependencies they hold with their loved one.
- Caregiving gender gap. Both for cultural and biological reasons, women are more commonly caregivers for spouses and parents, averaging six years of caregiving in their lifetime versus four years for men. As a result, women are disproportionately impacted by the challenges of caregiving, including struggling to balance responsibilities and making career sacrifices. And then, more find themselves alone and without someone to care for them when needed.
- Responsibilities extend beyond the care recipient’s life. Sixty-one percent of the time, caregivers expect their role will end with the death of their loved one. However, the complexities of financial, legal, and other aspects of caregiving often continue for months or even years.
“As tens of millions of people take on caregiving responsibilities each year, supporting those caring for our aging population has become one of the most pressing financial issues of our lifetime,” said Lorna Sabbia, head of Retirement and Personal Wealth Solutions for Bank of America Merrill Lynch. “Greater longevity is going to have a profound impact on the caregiving landscape and calls for earlier, more comprehensive planning and innovative solutions to address the health and long-term care needs of our loved ones.”
Financial caregiving: Navigating complexity and responsibility
The study finds that 92 percent of caregivers are also financial caregivers, and are contributing to and/or coordinating finances for their loved one. In fact, after two years of receiving care, 88 percent of care recipients are no longer managing their finances independently.
Financial caregiving is often far more complex than simply contributing to the recipient’s care. Financial caregivers are responsible for a wide variety of tasks, including:
- Health care rises as top challenge. Respondents find that navigating health insurance expenses is the top challenge of financial caregiving (57 percent).
- Uncharted territory. An estimated 49 percent of financial caregivers don’t have the legal authorization to perform their role.
- Guidance and resources lacking. Sixty-six percent of caregivers feel they could benefit from financial advice.
Costs and compensations of caregiving
While some aspects of caregiving may feel like a burden, those surveyed also tell us it is a blessing. Contrary to all we hear about the stress and sacrifices of caregiving, for many caregivers, the role is also often associated with a range of positive experiences and rewards. Caregivers describe a complex, demanding yet often nourishing journey – defined by honor, gratitude, fulfillment, purpose, and strong family bonds.
- Nearly three quarters of respondents say they’ve made numerous sacrifices as a caregiver – whether familial or professional.
- Fifty-three percent have made financial sacrifices to compensate for caregiving expenses. Thirty percent of caregivers say that they have had to cut back on expenses, and 21 percent have had to dip into personal savings.
- Two in five caregivers under the age of 64 have made sacrifices at work due to caregiving responsibilities, including reducing their hours (17 percent) and leaving the workforce (16 percent).
- Caregivers feel rewarded knowing they are doing something good for someone they love – 61 percent say the greatest benefit of providing care is the sense that they have “done the right thing.”
- Seventy-seven percent say they would gladly take on being a caregiver for a loved one again.
- Forty percent report a strengthened bond between themselves and the care recipient, and 24 percent say caregiving brought their family closer together.
- Eighty-six percent say watching their loved one’s health struggle was a motivator that caused them to place more value on taking care of their own health.
“Caregiving is one of today’s most complex life stages, throughout which hard work, high stress and heavy obligations intertwine with honor, meaning and resilience,” said Ken Dychtwald, Ph.D., CEO and founder of Age Wave. “This experience becomes even more emotionally complex and financially challenging when caring for loved ones suffering from dementia or Alzheimer’s. Even with that added burden, this study reveals that 65 percent say that being a caregiver brought purpose and meaning to their life.”
The crucial role of employers
Employers can play an integral role in supporting caregiving employees during this demanding life stage. While 84 percent of employers say caregiving will become an increasingly important issue in the next five years, only 18 percent strongly agree that their workplace is currently “caregiving-friendly”– underscoring the need for new approaches and solutions across the workforce.
“Meaningful, well-designed employer benefits can make a crucial difference in helping caregivers navigate the high stress of caring for a loved one and help them balance these responsibilities with the rest of their working and financial lives. Just as child care has been an issue in the past that led to revolutionizing HR benefits, the aging of the population means we need to consider how caregiving is becoming an increasingly important issue for employers and employees,” said Kevin Crain, head of Workplace Solutions for Bank of America Merrill Lynch. “These should include resources and programs focused on addressing caregiving complexities and employee networks that facilitate support from experts and peers.”
According to Crain, “Bank of America Corporation is committed to meeting the needs of caregivers in today’s transforming world. Companywide initiatives dedicated to addressing the needs of our country’s aging population and those of their caregivers include combatting elder financial fraud, increased awareness of cognitive decline and Alzheimer’s disease, and implementing caregiving best practices through training and resources for its financial advisors and corporate clients. The company supports our employees who are caregivers through a variety of resources including access to emergency back-up care for adults and children, professional elder care assessments, elder care law services, and an internal Parents and Caregivers employee network.”
Network Successfully By Asking Five Smart Questions
The only thing I ever got from a networking event was a stack of business cards until I changed my mindset. When I was a new social worker, I underestimated the value of connections related to my ability to boost my social work income. I only thought that networking could improve my upward mobility. Now as a seasoned social work veteran, I understand that networking is a tool for building meaningful business relationships. Meaningful business relationships fundamentally increase opportunities to boost social work income using part-time jobs or second gigs.
Trainings, workshops, or association meetings are the easiest venues for social workers to connect with other social workers. Social workers should also consider events that are not exclusively sponsored by or for the social work profession. Non-social work events provide an expanded opportunity to meet like-minded people outside of the profession. Plan to increase your chances for success. Begin by asking the following question.
What networking outcome do I want to achieve by attending this event?
Answering this question outlines your primary focus for participating in the event. Attending a training or seminar enables you to earn Continuing Education Units (CEUs) for licensure purposes and professional development. Earning CEUs, in this example is the outcome that you pay to achieve. If you have thoughts of collaborating with other social work professionals, the training environment connects you with other social workers who have similar interests in that specific subject.
A meet and greet networking event allows you to interact with professionals at various levels of their careers. Keynote speakers and experts attend promoting their products, services or theories. Hundreds of professionals exchange business cards and information about their ventures. These large events sound promising, but can also cause frustration. Many people try to speak to the headliners in an attempt to sell themselves. Headliners are those individuals who are extremely successful in their specific field. When their name is spoken, people acknowledge their expertise and work.
At networking events, headliners are surrounded by people who want something from them. It may be an autograph, a picture, a job or a mentorship. They limit the amount of time they spend with those who are not at their level. They place a monetary value on their time and know how to preserve their time, energy and expertise. This is a lesson social workers should learn. Your time has a monetary value and you can waste time and effort at networking events without research and strategic planning.
Who are the influencers in the headliner’s circle? How can I build a connection with them?
This question can be answered with a little research. You almost always guarantee yourself an opportunity to meet and speak with a headline by building a business relationship with those in the headliner’s circle. Successful networking is precipitated on communicating win-win outcomes. Each person wants to feel they are gaining from the interaction. This is another reason that knowing your outcome and having a plan makes sense.
How many colleagues will I approach?
Once you are in the environment, the fourth question you should ask addresses how to achieve your desired networking outcome. Set a goal for yourself related to the number of people you plan to approach. You are more likely to talk to others if you set a goal before you arrive. You may also develop an estimate prior to arriving. Set your estimate using knowledge of the advertised business areas or topics. You may also reassess the goal based on your observations during the event. Do not underestimate the opportunity to talk with others while waiting in line.
Estimating the number of attendees by business area or topic will help you establish a reasonable goal for interactions. Having a strategy for initiating interactions is also important. Start by talking to the individuals sitting near you. Beyond the basics, ask them how they plan to use the information or how they plan to integrate it into their current work. This moves the chatting from small talk to meaningful conversation. Listen more than you talk to show your interest. Also, share your plans for using the information. Ask probing questions, as appropriate to help you decide if you want to explore connecting on a professional level.
Does this information resonate with my professional vision, mission, and goals?
While this question sounds self-serving, it saves time and effort. Social workers who want to boost their income using part-time work and second gigs know the value of time. They, like headliners, set a monetary value to their time. If the person with whom you are talking does not appear to have a congruent vision, politely move on.
Meet and greet networking events are very similar to speed dating events. Smart questions, smart answers and strategic planning facilitate getting the outcome you desire. If you are not hearing things that resonate with your vision, mission or goals, then move on. Always remember that just because you want to build a relationship, it doesn’t mean the other person reciprocates. Recognize and respect the signs and signals you receive.
How to Turn Your Social Media Followers into Active Donors
In marketing, we know that carefully curated and compelling content moves people.
We see this every day on social media, where viral campaigns compel people to take action every day.
There’s no doubt that well-crafted social media content can turn followers into active donors. Nonprofit fundraising campaigns have raised millions of dollars, such as Charity: Water with $1.8 million and the ALS ice bucket challenge with $115 million.
The good news is that powerful content can be harnessed to activate a nonprofit’s social media followers to take action and give.
The not-so-good news? Creating and curating compelling content isn’t always easy.
But it’s important—even critical—for nonprofits to maintain active and engaging social media accounts not only to raise awareness and build brand, but to also drive donations.
Social is Everywhere and Everything
Experts project that there will be three billion social media users by next year. That’s close to half the global population.
A good chunk of social media users are known to check in sometimes by the hour or even the minute on top sites like Facebook, YouTube, WhatsApp, Instagram and Twitter.
While people of all ages use social media, there’s no doubt that younger generations are typically the first adopters.
This is important for nonprofits, because younger people use social media to support and donate to their favorite causes. According to this blog post, 43% of millennials made charitable contributions through social media compared to other channels.
Nonprofit Source also finds that 55% of people who engage with nonprofits on social media take some sort of action, such as donation.
Knowing this, how can a nonprofit fundraising team turn social media followers into active donors?
Tips on How to Activate Donors to Give to Your Nonprofit through Social Media
You gain followers by posting content consistently daily or twice a day.
Your content should include a healthy mix of inspirational videos, photo features, donor spotlights, action alerts, motivating statistics, memes and more. Your content can include direct appeals for donations too. Just make sure to balance them with other content.
To build your following faster, consider devoting some budget to sponsoring content, including boosted posts on Facebook and Instagram. Boosting posts can cost as little as $25 for a campaign and can allow you to target specific users, ensuring that your posts wind up at the top of the right people’s feeds.
You accomplished the seemingly impossible: you built a following of engaged fans on your social media pages.
But they’re not giving.
How do you convert these loyal social media followers into active donors ready to give?
Awaken and engage your social media followers with calls to action. Create content that tells your story through video and animated gifs. Suggest they give even a small amount to your campaign to help solve the problems you’ve illustrated. Remind them that every little bit helps. Most importantly, make it as easy as possible for them to give.
Make Action Easy
If you’ve succeeded in moving your social media followers to take action, but then made it impossible for them to donate easily online, you’ve lost a big opportunity to raise funds.
Make the process of donating in a few clicks safe, secure and seamless. Add an easy-to-use, secure donation management plugin like DonorBox to your website and directly link to your donation appeal on your social pages so your followers can donate in a couple clicks.
Make It Shareable
Understand the psychology behind social sharing and tweak your content to see what your followers are most likely to share. You’ll not only increase your following, but also inspire your new fans to follow their friends’ lead and also make donations to your cause.
Coming up with a creative campaign with inspiring events, videos and strategic hashtags around a moving theme can also turn those lurkers among your followers into active donors ready to share and give.
The shelf life of a social media post is only a few days or weeks at best.
This means that even if you’ve had a huge success, it’ll just be a matter of time before your viral campaign is a distant memory for most people.
Try to maintain your followers’ interest by creating different types of social media campaigns that can be run seasonally. Think strategically and make data-based decisions. Test different ideas to see what works best. Study the analytics made available by the different platforms to see who is engaging and sharing.
This Medium blog post offers some helpful tips for strategic ways to maximize fundraising through social media.
One not-so-small caveat: while it may seem like raising more than a million dollars via a viral social media campaign is the be all, end all of fundraising, you may be cannibalizing other fundraising efforts in your success. The best thing you can do is weave a social media component into an omni-channel campaign. Social media may be just one element of your fundraising strategy, and that’s okay.
Want more? These five successful nonprofits got it right using social media to drive donations.
Used by more than 20,000 organizations from 25 countries, DonorBox is a donation platform centered around the fundraising needs of nonprofits by offering a state-of-the-art, recurring donation plugin that can be seamlessly embedded into a website or with a popup widget, allowing nonprofit organizations to accept monthly recurring donations managed by the donors themselves.
View a live example and sign up for free at donorbox.org.
Corporate Social Responsibility Is More Than a Marketing Ploy
For-profit companies traditionally operated within a set of rules dictated by the government, such as collecting and paying taxes or meeting state and federal regulations. Everyone accepted profit maximization as the goal, and it didn’t really matter how companies managed to achieve that mission.
Today, many judge companies based on their broader impacts and whether they contribute to beneficial change. It’s definitely a positive shift, but new businesses must strike a delicate balance: Too much of a focus on corporate social responsibility (CSR) for a new brand over the effectiveness of the product or service can actually damage brand appeal. Researchers at North Carolina State University found that consumers view new brands as less enticing when their key messages focus on CSR more than the benefits of their products, even if they donate money to good causes.
While consumers want to support brands that give back to the world, they are more concerned about the efficacy of new products. And who can blame them? Nobody wants to spend hard-earned money on a subpar product. When product quality is equal but one item comes from a company with a social mission, customers are more likely to choose the company with a focus on CSR, though.
Patagonia stands out as an excellent example of effective CSR. The company aggressively incorporates environmental causes into its corporate DNA — and its customer base is just as aggressively loyal. Volkswagen, on the other hand, went out of its way to greenwash its corporate image by promoting “clean diesel” while flagrantly violating federal emissions laws with nitrogen-oxide emissions (a smog-forming pollutant linked to lung cancer). The disparity between VW’s mission and its actions had steep consequences.
Finding the Right Fit
CSR should be authentic to the soul of an organization — it should not be an add-on or a marketing ploy. Before committing to CSR, brands need to survey potential customers and brand ambassadors to ensure they focus on the right initiative.
For smaller companies and startups, this could constitute a more informal process of casual interviews with a few dozen people coupled with the founders’ personal goals. Established companies will want to undergo more extensive research that includes surveys and in-depth focus groups with employees, customers, and potential customers. In both cases, companies must confirm that the CSR initiative resonates with potential customers while identifying any concerns that could alienate critical groups. Without genuine authenticity, it’s only a matter of time before an initiative fails — it’s imperative that the CSR mission resonates with the company, its staff, and its executives.
Patagonia earned plenty of attention in 2016 for donating 100 percent of its profits from Black Friday sales to environmental groups. By literally putting its money — more than $10 million, in fact — where its mouth is, Patagonia proved its dedication to protecting natural resources. Considering a large swath of Patagonia’s clientele is environmentally conscious, that single day of sales truly resonated with brand loyalists.
Once a company pinpoints the CSR initiative that meshes with its identity, its leaders must articulate the CSR mission internally and externally. That mission will likely evolve, but it should be authentic to ensure long-term success. A genuine effort at CSR initiatives can be a great way to motivate and empower employees.
Internal CSR messaging focuses on culture and creating a universal message across the company. Everyone should understand the overlap between the CSR initiative and the company’s mission, as well as how the initiative affects every employee’s role. Externally, brands must simplify this messaging into an easy-to-understand version for consumers.
I’ve had to tackle this challenge with my own company, 2920 Sleep. We have boiled down our CSR focus to three elements: a commitment to product quality, excellent customer service, and 1% for the Planet. We aspire to make high-quality, long-lasting products that will have a reduced environmental impact with lower return rates; take care of our customers with great service; and stay financially successful so we can channel one percent of our revenue to support organizations that protect the environment. Our commitment to product quality and customer service enables us to support our CSR initiative. This mission is driven by everyone at the company — from our leadership and marketing teams to our customer service department and our brand ambassadors.
More than anything else, brands should ensure the CSR narrative is a part of the corporate culture. Think again of the difference between Patagonia and VW. Patagonia’s founder, management team, and employees all actively support its mission. VW, meanwhile, has lost brand integrity and market share, and its executives face significant fines and possible jail time.
Consumers can spot the difference between pretenders and companies that are committed to a mission. CSR offers an opportunity to pivot a business from a purely financial operation to an organization that recognizes its ability to help a wider community in addition to meeting financial goals. With a balanced approach to CSR and business goals, companies can truly shine.
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