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A majority of Millennials (87%) with an average income of $98,000, said they made a financial donation during the past year. That was also the case of Gen Z respondents to a survey by Foundation Source, with 71% affirmative and had an average income of $59,000.

However, both groups also engage in a range of non-financial charitable activities, including donating items (80%), volunteering time (54%), helping with fundraising (30%), and sharing expertise/knowledge (25%).

The next generation (NextGen) envision growing their charitable giving footprints with 80% of respondents aspiring to be described as a “giver,” 63% an “advocate,”’ and 55% a “changemaker.” They shy away from the label of “philanthropist,” with just 27% responding that the term resonates with them. The younger generation gravitates more toward catalytic terminology which they associate with contributing to larger systemic change rather than a more passive approach of individual giving.

“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,” Joseph Mrak, CEO of Foundation Source, said via a statement. “This research offers insight into what the future of philanthropy may look like, and the aspirations Gen Z and Millennials have for driving change in new ways.”

While both Gen Z and Millennials demonstrate active engagement in charitable activities, many are not aware of the ways in which they can optimize their giving through tax efficient vehicles, the data shows. Three in 10 have never heard of donor-advised funds, and slightly more than one-third are not familiar with impact investing (35%), trust-based philanthropy (36%), or giving circles (35%). 

Both Gen Z and Millennials are interested in learning more about the range of giving tools, with giving circles at the top (43%). Gen Z respondents would like to learn more about donor advised funds (41%), trust-based philanthropy (34%), and family foundations (33%).

Among the key trends from the report:

• Generational changemakers: Gen Z and Millennials aspire to be seen as givers, volunteers, advocates, humanitarians and changemakers.
• Primary drivers: Whether Gen Z or Millennial, their inspiration to get involved in charitable activity is primarily driven by family, having a passion for a specific cause or issue and wanting to help their local community.
• Gender differences: Women are more likely than men to want to make an impactful change to a cause and demonstrate their family’s values; men, on the other hand, are more likely than women to want to create or continue a legacy.
• Starting young: Millennials who engage in charitable activities started at an average age of 18; Gen Z started even younger, age 14.
• Money matters: Financial contributions were influenced by each participants’ financial resources. Monetary donations are more common among high earners, college graduates and employed individuals. And high earners donate greater amounts.

The full report can be viewed here.

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Source From Non Profit Times