In the ever-changing landscape of philanthropy, it’s increasingly evident that if you want to involve the next generation in charitable giving, you need an approach that respects and embraces generational differences. While the term “next generation” can be defined broadly, this article focuses on the unique perspectives of Gen X, Millennials and Gen Z.  

Why engaging younger generations is different – and important 

In their book, Generation Impact: How Next Gen Donors Are Revolutionizing Philanthropy, Sharna Goldseker and Michael Moody make the case that next-gen donors are poised to become the most prolific philanthropists ever. This is driven by three key factors:  

• The historic wealth transfer currently underway 

• The trend of wealth creation at younger ages 

• An eagerness to engage in philanthropy at an early age and throughout their lives.  

These new donors are also driving innovation in the philanthropic field and are eager to experiment for transformational change. Their influence can be seen in areas such as collaborative giving, public-private partnerships and leveraging social networks. 

Here are three tips to effectively engage them in giving: 

Tip 1: Understand Generational Trends

• Gen X (1965–1980): Gen Xers exhibit a strong inclination towards volunteering over monetary donations. According to Giving USA’s 2022 report on “Giving by Generation,” the top three giving priorities of Gen X are places of worship, faith-based organizations and healthcare. Gen Xers are also likely to support local social services, children’s charities and animal rescues.  

• Millennials (1981–1996): Millennials, the largest generation representing 22% of the population, have increased their giving in recent years and are now second to Baby Boomers in average annual household giving, Giving USA reports. Like Gen Xers, the top three giving priorities of Millennials are places of worship, faith-based organizations and healthcare. Additionally, Millennials tend to support children’s charities, civil rights advocacy, environmental causes and human rights organizations. In general, they believe in success obtained collectively as a group, greatly value transparency in organizations and want to see the direct impact of their giving.  

• Gen Z (1997–2012): Emerging as the most racially and ethnically diverse adult generation in U.S. history, Gen Z is digitally savvy and socially conscious. Gen Z prioritizes giving to places of worship, healthcare and environmental causes. They also share Millennials’ interest in social justice causes. Gen Z wants to hear more frequently from the charities they support and are more likely than Millennials and Gen Xers to give monthly versus occasionally.

Tip 2: Lead By Example 

• Be a Role Model: Parents and grandparents play a crucial role in instilling philanthropic values in the next generation. Model giving behaviors by discussing the importance of charitable giving at the dinner table and in everyday conversations. Talk to children about ways you give of your time, talents and financial resources. FFTC’s Strategic Giving Guidebook offers sample discussion questions and conversation starters.  

• Volunteer Together: Engage in volunteer activities as a family to reinforce the importance of giving back and serving the community. 

• Establish Giving Traditions Encourage children to donate toys and clothes to those in need, fostering a tradition of generosity from a young age. 

• Teach Financial Values: Instilling philanthropic values in the next generation can be part of a broader conversation about financial literacy, responsible spending habits, the importance of saving and navigating any discomfort about wealth. Consider writing a personal financial mission statement to clarify your values and communicate them to future generations, cultivating an understanding of the responsibilities that come with wealth. 

• Educate on Giving Options: Educate the next generation about various giving options beyond cash donations, such as donating complex assets like appreciated stock, real estate or business interests directly to charity. 

• Visit Past or Future Grantees: Visit nonprofits you’ve supported in the past or are considering supporting in the future as a family. FFTC can assist you in arranging and preparing for site visits. 

Tip 3: Use Donor Advised Funds to Get Them Started 

• Donor Advised Funds: Younger generations are more likely to value flexible, easy ways to give. Donor advised funds are an especially effective way to give and provide flexibility and potential tax benefits, making them an ideal tool for charitable giving. With FFTC Donor Advised Funds, fundholders also have access to other benefits, such as FFTC’s administrative support, grantmaking expertise and online portal that allows grants to be recommended 24/7.  

• Provide an allowance: Empower the next generation by giving them an allowance from your donor advised fund that they can grant to a charity or charities they select. Encourage them to make a case for the charities they’ve chosen to support, prompting reflection on their individual values and interests.  

• Consider a structured grantmaking approach: Partner with FFTC to design a custom grantmaking program that can involve multiple generations of family members in a structured decision-making process facilitated by FFTC.  

• Successor Advisors: Name children or grandchildren as successor advisors on donor advised funds, entrusting them with future charitable decision-making and fostering a multi-generational legacy of giving. One of FFTC’s Philanthropic Advisors can facilitate a meeting with donors and their appointed successor advisors to orient successors to the fund, its purpose and the original donor’s intent for its future. 

• Gift a donor advised fund: Established with a minimum of $10,000, donor advised funds are meaningful gifts for birthdays, holidays, weddings or the birth of a child or grandchild. A donor advised fund may also be used for memorial giving to honor the legacy of a loved one who has passed. 

Engaging the next generation in giving requires a proactive and inclusive approach that recognizes their unique perspectives and values. By starting conversations, educating, introducing giving options and providing guidance, you can cultivate a culture of generosity and social responsibility that transcends generations.  

From initiating conversations to choosing the best approach for your family, Foundation For The Carolinas can help. Contact Rebekah Allison at rallison@fftc.org to learn more.