80% Of Young Wealthy Prefer To Be Called 'Givers' – How Millennials And Gen Z Are Redefining Philanthropy

When many people think of a philanthropist, they picture someone older with deep pockets and perhaps a well-established career. But younger generations are shaking up that stereotype. A recent report from Foundation Source reveals that 80% of wealthy Millennials and Gen Zers prefer to be seen as "givers." However, this preference goes beyond just the terminology; it's about how these generations define philanthropy. 

For Millennials and Gen Z, giving is about more than financial contributions. They're looking to make an impact by getting directly involved. Whether volunteering, fundraising or sitting on nonprofit boards, these younger donors are more hands-on. 

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This shift toward action over money has led to a "democratization of giving," according to Giving USA. Historically, there was more correlation with charitable giving as individuals got older and wealthier. Still, over the past several years, the field has leveled out, with younger adults jumping in early. They see giving as a way to make a difference now, not something to wait on until later in life. 

A Turning Point for Younger "Givers"

The 2016 election was a turning point for many young adults, sparking a wave of charitable involvement. The change in party motivated many Millennials and Gen Zers to "vote with their wallets," resulting in donations and support for more progressive causes. Giving USA reports that this generation is more likely to give charitably to "right the wrongs in society."

But younger people are donating more than money – they're also volunteering at higher rates. Before 2016, older and younger generations had similar volunteering rates, at around 33%. By early 2017, millennial volunteers increased to 42% and seniors were volunteering at a rate of 19%. Senior and Boomer volunteer rates dropped even further after the pandemic and haven't recovered since. 

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What Drives Charitable Giving in Younger Generations? 

The motivations and causes behind charitable giving vary a lot between generations. Older donors more frequently give out of a sense of obligation or to support familiar institutions, like religious organizations. Younger generations reportedly focus more on social impact by giving to causes related to homelessness, climate change and the advancement of women and girls. 

Millennials and Gen Z also bring a different mindset when it comes to measuring the success of their giving. According to a Bank of America study, Millennials and Gen Z are more likely to tie their names to charitable efforts, seeking public recognition not for ego but to amplify their impact. Many use digital platforms to share their philanthropic journeys, inspiring others to get involved.

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Household Income Plays a Role

While younger generations may lead the charge in redefining philanthropic efforts, income still plays a significant role. As the age gap of donors levels out, household income is the best predictor of charitable giving, according to Giving USA. Higher earners tend to give more, both in percentage and dollar amounts. 

However, while higher-income people tend to donate more, the desire to give isn't limited to the wealthy. Regardless of income, many young adults give what they can and are driven by a sense of purpose and urgency. Even in challenging economic times, they've found ways to continue charitable work – donating money, volunteering or using social platforms to raise awareness. 

A New Era of Philanthropy

Millennials and Gen Z are showing that philanthropy isn't a one-size-fits-all endeavor. They've embraced the idea that there's no "right way" to give. In doing so, giving has become more accessible to others as they encourage more people to get involved. 

As younger generations age and accumulate more wealth, we'll likely see continued impacts from their efforts. 

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