THE NEW
PHILANTHROPISTS

 

A new study from Foundation Source, the nation's largest provider of cloud-based solutions for private foundations, reveals that Gen Z and Millennials are taking a unique, values-driven approach to charitable giving. Titled Shaping Tomorrow: How Gen Z and Millennials View Charitable Giving, the study surveyed over 1,000 respondents between the ages of 18 and 43, highlighting how this next generation is reshaping philanthropy with a focus on social change, personal activism, and hands-on involvement.

Despite their relatively lower earnings compared to older generations—Millennials averaging $98K and Gen Z at $59K—87% of Millennials and 71% of Gen Z participants made financial donations in the past year. Beyond financial contributions, these generations actively engage in non-monetary charitable efforts, with 80% donating goods, 54% volunteering their time, and 30% helping with fundraising. Gen Z and Millennials aspire to be seen as advocates, givers, and changemakers, avoiding the more traditional term “philanthropist,” which only resonates with 27% of respondents.

“There is much discussion around preparing advisors and the broader wealth management industry for the great wealth transfer, but in order to be truly effective, we need to gain a more thoughtful understanding of how NextGen thinks about giving back and creating impact,” said Joseph Mrak, CEO of Foundation Source.

This shift in how younger generations approach giving presents an opportunity for financial advisors to guide clients in optimizing their charitable contributions through tax-efficient vehicles. However, the report found that many Gen Z and Millennials are unfamiliar with key giving tools such as donor-advised funds, impact investing, and trust-based philanthropy. Educating these generations about these strategies could greatly enhance their charitable impact.

For investors, this generational shift signals a need to align wealth management with the values and philanthropic aspirations of younger clients. As these donors accumulate wealth, their desire to make a meaningful difference will drive both charitable contributions and investment strategies. Advisors who can provide the right tools and knowledge will be well-positioned to support the next generation of philanthropic leaders.

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www.foundationsource.com

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