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Now on to the podcast. It's one of the largest transfers of wealth in human history, trillions of dollars moving from one generation to the next. Hi, I'm Rob West. How can we help the next generation see generosity not as an obligation, but as a joyful calling? Kristen Fayervari joins us to talk about how younger Christians are redefining stewardship and how the National Christian Foundation is helping them live it out.
And then it's on to your calls at 800-525-7000. That's 800-525-7,000. This is Faith and Finance, biblical wisdom for your financial decisions.
Well, our guest today is Kristen Fayervari, Vice President for Brand and Experience at the National Christian Foundation, a valued underwriter of this program. Kristen, great to have you with us today. Oh, it's so great to be here. Thank you, Rob. Kristen, before we dive into what inspires younger Christians to give and how NCF is helping them live that out, I want to dig into your story a bit.
Would you mind sharing what first ignited your own passion for generosity and how that personal journey shaped the way you serve at NCF? Yeah, I would say that for me, generosity was personal as a kid growing up, but it was much more obligatory and obligation. You know, I watched my parents give their tithes every week in church. I was taught to put the envelope in the basket. It was a great discipline that I developed as a kid.
But I think later in my 20s and in my 30s, and then coming to work at the National Christian Foundation, what I really started to see is the way in which generosity changes people. And obviously, Where the money goes and the resources go is incredible with charities and recipients. But actually, seeing the way in which it changes us from the inside out and helps people become more free and not be as tied to the things of this world really had an impact on me personally. Yeah.
Well, I'm so glad we get to unpack that today. And this really relates to some of the data you're uncovering in your role around the next generation. I want to talk about what's driving the next generation to give, what's inspiring young Christians today to engage in generosity and even faithful stewardship. Yeah, one of the interesting things that we have found is Millennials, and we're talking about next gen, we're talking about millennials who are kind of at the age of 29 to 44 right now. And one of the things that we found before we even did our study is that millennials see philanthropy as a part of their identity at large.
You know, not just Christian millennials, but millennials at large. And for Christian millennials, and what we found in the study is this idea that. My life is a way to give away. You know, that all of my resources have equal value, not just the financial side, but my time is just as important. My influence is just as important.
And so they're giving more than money. They want to be involved in the work that they're doing. They don't want to just write a check. They want to see the change and be a part of the change, which is very different from previous generations.
Well, I love that because they want it to be authentic to who they are and their faith. And I love that they're driven by impact. That's powerful. Let's talk about traditional tools like donor advised funds and estate planning and financial advising. How are younger Christians approaching these?
What I know for sure is that they're still using traditional tools, but the difference is that they want those traditional tools in a way they can make personal.
So how they see the impact that's made, how they are seeing the numbers or whatever it might be, where that money is going. They want to know how it's being used.
So they want it to be personal. I would also say that they're taking something traditional like investments, which has been around for a long time. But they're seeing investments. How can I charitably give or charitably invest? How can I use my investments in a bigger way than just the financial return?
So it's kind of this more personal view of traditional tools. Yeah.
Well, that's got to be exciting for your work there at the National Christian Foundation. I bet your team is encouraged by this new data. Oh, very much so. Very much so. And I think we've already been seeing more and more younger Christians come into the fold at NCF.
And I think one of the differences, though, is they're wanting to do it in community.
So we have communities all over the country, but they're giving together. You know, they're really trying to do it in new ways, which is exciting for us.
Well, we're going to continue to talk about next-gen generosity with Kristen Bayervari right around the corner. When we come back, we'll talk about what advisors need to know, how families can have these intentional conversations, and specifically, how NCF can come alongside you to encourage you in all of this. This is Faith and Finance. We're just getting started. Don't go anywhere.
We'll be right back. We're grateful for support from Movement Mortgage, who provides residential home loans in all 50 states. Guided by a mission to love and value people and a goal to redefine the mortgage process, Movement seeks to help others achieve their financial goals. You can find out more at movement.com/slash faith. Movement Mortgage LLC supports Equal Housing Opportunity, NMLS number 39179.
For licensing information, please visit nmlsconsumeraccess.org. Are you looking to maximize your charitable impact this season? The National Christian Foundation has a smart solution. It's called a Giving Fund, and it helps you give more strategically, grow your balance tax-free, and amplify your charitable impact. If you want a donor-advised fund that aligns with your values, open a giving fund today and start making a bigger difference for the causes you love.
Learn how at faithphy.com forward slash NCF. What does it look like to build a legacy that lasts? We're talking next-gen generosity today. Kristen Bayervari is here from the National Christian Foundation. Kristen serves as vice president for brand and experience.
And NCF not only comes alongside givers to help them give creatively and strategically to give in community with tools to make it really simple, but they also have offices all over the country. We'll get into a bit more about NCF and how you can work directly with them in a moment. But if you want to learn more, go to faithfy.com/slash NCF. And while you're there, open a giving fund. It takes just a few minutes, and it's one of my favorite tools for giving.
Kristen, we're talking next-gen generosity, and I want to talk about advisors for a second. And specifically, what should advisors know about the way millennials and Gen Z approach generosity? and even wealth and stewardship. You know, I think going back to my earlier comment about identity for millennials, giving is this. Bigger picture, there's a lot of threads to it.
It isn't just financial, it's all these other resources that they want to give. And so I think helping them see that and uncover what are all the ways that I can give, or getting advisor to help them connect in community or to other people or other organizations that can help them give away more than just their financial resources. I think. is one way for them to think about it. I also think that co-creation is really important for most millennials.
Now, I would say when we did this study, we were looking at millennial wealth creators, those that had generated their own wealth, and then we were looking at inheritors, those Who will or have inherited wealth that have been in their family for multiple generations? Those entrepreneurs, those wealth creators, are very much on the co-creator side. They want to co-create how the giving happens, what the plan looks like. They want to be at the table, they want a strong voice. Oftentimes, they want to do it themselves.
You know, there may not be an advisor in the room, but when there is an advisor in the room, I think just bringing them to the table and making them part of the conversation is really important. Yeah, I love that. And I love this idea of connecting both head and heart. You know, we need a plan, and that's often one of the barriers to giving, the lack of a plan. But they also need a vision for their giving, and they need to see how it's going to lead to real lasting change and impact.
And that's so important to this next generation.
Well, let's move from advisors, Kristen, to families. How can families be intentional and have these faith-filled conversations across the generations around values and generosity? One thing I would start with is the acknowledgement, at least from our research, what we see is. You know, a lot of times we focus on the differences in a family, you know, or between generations. And I, first thing I want to highlight is that there is a starting point that we found in the data that says that faith is a guiding principle for decisions for both millennials and an older generation.
And knowing that that's true, or maybe discovering and asking that question would be really healthy in a family to understand that that principle is true.
Now, how we get there is where the differences come in. And so I would say that one really important Stepping stone for families is to understand what faithfulness looks like for each generation. Uh, to unpack that with stories on both sides, to hear, you know, and understand how God is weaving the story together of faithfulness for both generations and hearing each other. You know, I've sat in on quite a few family meetings recently with advisors. folks from NCF.
And what I've found is when there's multiple generations in a room, Listening to each other, both, you know, both sides of the table, something powerful happens, and God does something in that storytelling. I love that. And especially when it's inherited wealth, you know, when the one that's stewarding it didn't see it created, it does change the dynamic.
So, understanding the heart of those that saw it created in the first place and hearing those stories is so powerful.
Well, let's talk about then how NCF can come alongside the next generation to equip and inspire them to live generously because this is where NCF really shines. Oh, thanks.
Well, we are really passionate about this topic all across the country. One of the things that we've done since doing this research that we're referencing is we published a report that you can find on our website. And we're excited about that because we wrote it in such a way that it could serve both an older generation and a younger generation and giving you ideas and thoughts and perspectives.
So that's one tool in your toolbox. The other thing that we're trying to do is host more experiences and events in each of these communities across the country. There's lots of good stuff happening. And I would say the more organic they are, the better, which is sometimes harder for people who like structure. But we found that with the next generation, when they're in the mix co-creating and organically making it happen and designing it, it's more successful.
So we're seeing that happen. partnering with different churches, advisors, making sure that we're bringing together any sort of partners that can help a family. Not one organization has all the answers. Not one advisor has all the answers. And just helping these families connect to the right organization for either their life stage or if they're a business owner, whatever they might be, we want to help connect them to a good organization like that.
Kristen, I know there's some great information in this Next Gen Research. And by the way, folks, if you want to get a copy of this report, just go to ncfgiving.com/slash nextgen research and you can get a copy. But among all of the insights, I know one of the things that really was highlighted in this data was this idea of the importance of agency in developing healthy stewards. Unpack that a bit for us. Yeah, the way we define agency is the ability to act on the free will that God gives us.
You know, it's the kind of making decisions, getting the reps, you know, in those decisions. What we found in the research is just the power of agency. The more that you act on and kind of step into the responsibility that God has given you in stewardship, the more confidence you have, the more joy you have, the more united you are as a family, the closer you are that you feel to God. We went into the study not really knowing that that would be an outcome. And it was so powerful to us.
And so one of the things that we at NCF have been trying to think about is how do you help people find agency, especially if, you know, they haven't received an inheritance. Let's say they're an inheritor and they don't really have this opportunity. And the biggest encouragement we have is to help people find their, quote, gen one. What are the things that you get excited about that you can go create, that you can make decisions on? Because if you do that in stewardship, it's going to help you have more confidence.
And more joy, and really thrive and flourish in that stewardship. That's really exciting. We've got just about a minute left. I know the research, Kristen, points to the significant influence women have in shaping generosity. Let's finish here because this is really some exciting work.
The most important thing that we found is not actually something new. We know that women and mothers have a huge role in financial decisions in the home. 72% of the millennials we talked to said that they were most influenced. In their generosity by their mothers.
So there's a huge role that women play in this story. But the research also showed that they are also the ones that feel unheard in family wealth decisions. That's next-gen women are feeling unheard. And so I think the time is now to figure out how to incorporate a woman's voice into those decisions around giving and around. if you're in the midst of wealth transfer.
And I'm excited, there's a new study that Women Doing Well is working on and we'll be helping people recruit for that.
So we're excited about that new study that Women Doing Well will be doing here in the next few weeks. We are as well. Kristen, unfortunately, we're out of time. We'll have you back real soon. Thanks for stopping by.
Thank you so much. Folks, the Great Wealth Transfer isn't just about inheritance, it's about passing faith, values, and purpose. What a treat today to be with Kristen Fiervari from the National Christian Foundation. To learn more, go to faithfi.com/slash NCF and open your giving fund today. FaithFi.com/slash NCF.
We'll be right back. Managing money doesn't have to feel overwhelming or disconnected from your faith. The FaithFy app helps you budget with purpose, combining easy-to-use tools like digital envelopes with biblical wisdom and a Christ-centered community. Whether you're new to stewardship or looking to grow in generosity, the FaithFi app equips you to honor God with every financial decision. Join over 70,000 others and start today by downloading the app from your app store or by visiting FaithFy.com and clicking App.
That's FaithFi.com and click app. We are grateful for support from Praxis Investment Management. Since 1994, Praxis has offered investment products designed to meet practical needs for everyday investors seeking to steward their assets consistent with their desire to promote positive social and environmental impacts. Praxis aims to bring a faith-based approach to ETFs, mutual funds, multi-fund portfolio solutions, and money market accounts reflecting their 500-year-old Anabaptist Christian faith tradition. More information is available at praxisinvest.com.
I'm so glad you're with us today on Faith and Finance. We do have a few lines open. If you have a question today, call right now, 800-200. 525-7000. I've got an amazing team ready to take your call, and we'll get you on the air quickly.
Let's go to Florida and welcome Joan to the broadcast. Go right ahead. Hi, my question is, my house is paid for. My husband and I are both almost retired. And I have heard you talk about reverse mortgages quite a bit lately on the show.
I never really thought that was a good idea, but now you've got my curiosity piqued. Our house is fully paid for.
So I was wondering about the benefits of that. I heard you on the show say that if you wanted to stay in your house long term, that might be the way to go. But what I was afraid of is accumulated interest that occurs from that.
So could you weigh in on that a little bit? And also the company that you had recommended? I'd be delighted to, Joan. I appreciate the question. And let me just be really clear.
You'll hear me talk far more about paying off your house in full and the peace of mind that comes from being debt-free. But I will say the reverse mortgages of today, what's called a home equity conversion mortgage, is a different product than they were 20 years ago. Where, you know, if a spouse passed away, you might not be able to stay there. That's not true today.
So you would be able to, you and your spouse stay in the house as long as you're alive, as long as you pay the property taxes and the insurance. And with a home equity conversion mortgage, you do pay a 2% fee to the home to the HSA. No. FHA is what I'm thinking of, Federal Housing Administration. All my acronyms are getting mixed up here today.
But that ensures that you are not personally guaranteeing the loan.
So the only thing that serves as collateral for a home equity conversion mortgage, a reverse mortgage, is the house.
So, Joan, to your question, who would want to consider it?
Well, it would be somebody who wants to stay in their home. Either they need cash flow or they want access to cash out of their home equity without ever having to make a mortgage payment. And where they know that, yes, the balance is going to grow over time because remember, there's fees and interest. And if you're not making a payment since it's optional, then at some point when you pass away or move, there would be less equity that would be available, let's say, to your heirs. But typically, heirs aren't going to keep that house, they're going to sell it.
And just like if you had a forward mortgage on it, they would sell the property, pay off the mortgage, and then whatever's left, they would share according to your wishes. The same would be true with a reverse mortgage. You'd access a line of credit that you could draw on if you needed it. You could convert it to a monthly income stream, whichever you prefer. The payment is optional.
It grows over time with fees and interest. And then whatever equity is left after the house is sold and the loan is paid off would be available for your heirs.
Well, for someone who doesn't have the income they're looking for in retirement or needs access to additional cash, Rather than just letting that home continue to appreciate and building up a bigger and bigger asset that they can't enjoy and is ultimately going to go to the kids. This allows the owner to, or the couple, to tap into that home equity in the form of either a monthly payment or home equity.
So, give me your thoughts on all that. I know there's a lot there. I guess my thoughts are you had mentioned also about closing costs and also obviously they're not doing this for free so there is finance charges involved I'm sure. Do you have any idea just a guesstimate on what that charge would be or yeah I mean the first thing is you are going to have that fee to the FHA the Federal Housing Administration that's 2% of the home's appraised value or the lending limit so typically you know whatever the amount is of the reverse mortgage 2% of that's going to come right off the top doesn't go to the mortgage company goes to the Federal Housing Administration that is essentially paying for the insurance that protects the borrower and the lender that nobody is ever going to owe more than the house is worth. Beyond that, there's the interest rate.
So it's going to be typically around the same amount of whatever the prevailing rates are, but it's a variable rate and then it's going to move. You know, there are typically servicing fees that might be $30 a month, something like that. That. And then there's probably, you know, some origination fees, some costs on the front end that you would typically have.
So, you know, there are plenty, you know, there are fees and there is interest that is going to accumulate over time, which means that balance is growing.
Now, your house should also be appreciating as well. And so the idea would be that the home would appreciate ideally more than the interest plus the fees. But even if it didn't, all you're doing is just reducing over time the equity that's available for your estate upon your death, or if you happen to move out, at which point you'd have to pay off the loan. Oh, that's a really good point. I didn't think about the aspect of the house appreciating.
Okay, yeah.
So that, yeah, that's a really, really good point.
Well, you've opened my mind up to some good ideas. My husband and I are we are debt-free. We have no other no debt other than our living expenses. which actually is getting to be a lot as you know, but with inflation. But yeah, we would just like to be maybe take we have a lot of equity in our home, so we we would love to pull some out without moving.
So this would be ideal for us. Yeah, and the average person doesn't get a monthly check sent to their home, despite the fact that that's how we typically know about these. The most typical version of a reverse mortgage is a line of credit.
So they might say, all right, you know, if your house is worth $500,000, we're going to give you a $250,000 line of credit. And then the next year, if you don't touch it, they might raise it to $270,000 because your home's appreciated.
So that money's there. You tap into it when you want. You can pay it back if you want, but you just don't have to. The payment is optional. So that's typically the way most people will tap into this and make that available.
And then they might use it for a trip once a year or, you know, a renovation or upkeep to the house or something like that.
So to learn more, Joan, just go to movement.com slash faith. That's movement mortgage. Again, movement.com slash faith. Thanks for your call today. We appreciate it.
Let's stay in Florida and head to Keith. How can I help you? I'm coming up on my yearly RMD withdrawals. And I have recently found out about these QDCs. Can I take the money, like my usual payment, and then direct it to that?
Or should it go directly to that charity? Yeah, it's a great question. What is your age? I happen to be 92. Oh, wow, that's amazing.
I love that. Yeah, Keith, QCD Qualified Charitable Distribution is a wonderful tool. for you to take. What is required to come out from your IRA based on the IRS table and send it direct to a ministry or charity like your church or any other ministry that you love. And not only do they get 100% of the money and it doesn't become taxable to you, which every other distribution from an IRA would be taxable and this would not be, but it will also satisfy your required minimum for the year.
So, if that money goes straight from your IRA to the ministry or your church and it equals or exceeds your required minimum for the year, you've just satisfied your required minimum and you pay no tax on the money as it comes out. Big thanks to my team today: Josh, Jim, Omar, Tahira. If you want to support us, become a partner at faithfi.com/slash partner. We'll see you tomorrow. Faith in Finance is provided by Faith By and listeners like you.
