[ad_1]
Wealthy millennials and Gen Zers are reshaping the landscape of charitable giving, viewing themselves more as activists than mere donors, as per a recent study. According to a survey by Bank of America Private Bank, affluent donors under the age of 43 are prioritizing volunteer work, fundraising, and mentorship for charitable causes over traditional monetary contributions. This generational shift in giving is expected to have a significant impact on the charitable sector, with a focus on actively addressing social and environmental issues rather than just providing financial support.

The study revealed that both younger and older multimillionaires are actively involved in philanthropy, with 91% of respondents having donated to charity in the past year. However, there are notable differences in the motivations and methods of giving between age groups. Younger donors are more likely to engage in volunteering, fundraising, and mentoring, while also showing a preference for serving on nonprofit boards. In contrast, older donors tend to give out of a sense of responsibility and are more inclined to support traditional causes such as religious organizations, the arts, and military charities.

The younger generation of wealthy individuals is also more aligned with causes related to homelessness, social justice, climate change, and the advancement of women and girls. Their philanthropic efforts are driven by a desire to create lasting impact and effect positive change in the world. As they continue to accumulate wealth and influence, their focus on peer networks, activism, and community engagement is expected to endure.

The implications of this generational shift in charitable giving are significant for wealth advisors and nonprofits. Younger donors, who often inherit their wealth, are more likely to utilize charitable giving vehicles established by their families, such as charitable trusts, family foundations, and donor-advised funds. They seek to integrate discussions about philanthropy into their wealth management strategy from the outset, emphasizing the importance of education and collaboration between advisors and nonprofits.

In conclusion, as the next generations are poised to inherit trillions of dollars in wealth in the coming years, engaging with and understanding the preferences of young affluent donors will be crucial for the future of philanthropy. By acknowledging their preferences, providing recognition for their contributions, and adapting to their evolving approach to giving, organizations can effectively attract and retain the support of the next generation of philanthropists.

[ad_2]
SOURCE