Recent findings reveal a marked shift in the attitudes and practices of affluent young people towards charitable contributions. Wealthy individuals aged 43 and under, often referred to as millennials and Gen Zers, are adopting a more activist role in philanthropy. Unlike previous generations, these younger philanthropists view their contributions as part of a broader movement for social change, engaging actively in the causes they support rather than merely donating money. This trend, highlighted in a study by Bank of America Private Bank, emphasizes a more hands-on and engaged approach to philanthropy.
The study, which surveyed over 1,000 high-net-worth individuals with investable assets exceeding $3 million, indicates that young givers are driven by a sense of agency and purpose. They are described as “holistic social change agents,” passionately involved in addressing critical social and environmental issues, rather than simply writing checks. Dianne Chipps Bailey, a leading figure in philanthropic strategy at Bank of America Private Bank, articulates this emerging mindset, noting that younger donors are seeking to mobilize their resources—time, talent, and networks—alongside their financial contributions.
This notion of becoming actively involved in philanthropy marks a departure from previous generational norms, where older wealthy individuals often approached giving as a moral obligation. Interestingly, the study found that 91% of respondents across ages engaged in charitable giving, yet the motivations behind their contributions differed significantly. Younger givers often intertwine their personal experiences, such as education and social influences, into their motivations for supporting various causes.
One of the most notable distinctions identified in the survey is the preference of younger wealthy donors for engagement over mere financial support. In fact, they are twice as likely to assist in fundraising and three times more likely to serve as mentors compared to older counterparts. This shift underscores an evolving philanthropic landscape where relationships and community impact take precedence over occasional financial transactions.
Older donors, on the other hand, tend to focus primarily on providing financial support, driven more by a sense of duty or legacy. In contrast, the younger demographic values innovative forms of engagement, favoring roles on nonprofit boards or serving as guides for their peers. Reflecting on these trends, Bailey suggests that this generational shift is likely to continue as younger donors mature and accumulate greater fortunes.
The causes that resonate with younger philanthropists also illuminate differing priorities compared to older generations. Wealthy millennials and Gen Zers are far more inclined to address issues such as homelessness, social justice, climate change, and gender equality. In stark contrast, older individuals often prioritize charitable investments in religious organizations, the arts, and military-related charities. This divergence is indicative of the unique societal challenges that have shaped the perspectives and values of younger donors.
The tumultuous events of 2020, including social movements and growing awareness of systemic inequalities, have propelled younger generations to adopt more action-oriented approaches to philanthropy. Rather than responding reactively to crises, these young givers exhibit a sustained commitment to addressing the core problems facing society.
As the landscape of charitable giving evolves, wealth advisors and nonprofits must adapt to meet the unique needs and preferences of younger donors. Given the projected transfer of over $80 trillion in wealth to future generations, understanding how to engage these young philanthropists will be crucial for financial advisors and nonprofit organizations. The study indicates that younger donors often wish to initiate discussions about philanthropy during their first meetings with wealth advisors, emphasizing the need for educational resources and guidance in navigating the complexities of charitable planning.
Moreover, younger philanthropists often seek recognition for their efforts. The research shows that they are more likely to assess their impact based on public acknowledgment. Unlike older donors, who generally prefer anonymity, younger givers are open to associating their names with their philanthropic initiatives. This desire for visibility underscores the importance of creating platforms that celebrate their contributions, thereby fostering stronger relationships between donors and the organizations they support.
As affluent millennials and Gen Zers redefine philanthropy, their emphasis on activism and engagement will significantly influence the future of charitable giving. By understanding their motivations and aligning with their values, wealth advisors and nonprofits can cultivate deeper relationships with this emerging generation of donors. As more young people step into roles as activists and change-makers, the charitable landscape will embrace a new norm—one marked by collaborative efforts aimed at creating lasting social impact.