Younger Donors Reshape Philanthropy with New Tools
Philanthropy among America’s wealthy remains robust, but the landscape of charitable giving is undergoing a profound transformation. A recent Bank of America Private Bank survey reveals that the next generation of wealthy Americans remains committed to charitable giving, albeit with a different approach. For starters, Gen Z and millennial donors tend to support more causes on average than wealthy donors. They also use a broader range of charitable tools than previous generations.
Yet despite younger donors being more engaged, more sophisticated and more diverse in their philanthropic approaches than any previous generation, fewer than half of wealthy Americans (47%) believe the next generation is prepared to carry forward the family’s charitable legacy (down from 55% in 2024). The share of parents who believe their children share the same commitment to giving back through philanthropy also fell to 65%, down from 76 % in 2024.
Universal Commitment, Evolving Priorities
According to the study, the causes receiving the most support reflect both immediate human needs and long-term societal challenges. Basic necessities like food and shelter lead the way at 86%, followed by health care at 72% and disaster relief at 68%. These priorities reveal a philanthropic community responsive to both chronic social issues and acute crises.
What drives this giving? The motivations are both pragmatic and deeply personal. An overwhelming 87% of donors believe they can make a tangible difference, while 83% cite personal values, beliefs and convictions, including religious, political and philosophical views, as primary drivers. This suggests that modern philanthropy is as much about personal identity and purpose as it is about addressing societal needs.
However, the philanthropic landscape is far from static. More than one-third of wealthy individuals report that their priorities have shifted over the past year, with 55% noting that changes in government policy have influenced their charitable strategies.
The Next Generation: What are They Doing Differently?
Gen Z and Millennial donors support an average of 12 charitable causes, compared with eight among wealthy donors overall. One stark difference in their approach is that younger donors are less likely to give through direct cash contributions (56% vs. 92% of baby boomer and Silent Generation donors) but are more likely to use a broader range of philanthropic approaches, some of which they may have inherited, including charitable trusts (47% vs. 5%), family foundations (24% vs. 2%), fundraising (30% vs. 11%) and mentorship (26% vs. 4%). This diversification reflects a more holistic view of impact that extends beyond writing checks. Younger donors appear to view their time, networks and expertise as equally valuable philanthropic assets.
Younger donors are also balancing tradition and individuality, with 87% saying it’s important to honor their family’s philanthropic legacy, while 86% believe it’s equally important to establish their own charitable identity.
The study reveals that the generational contrast is also pronounced in other areas. For example, while 97% of younger donors support basic necessities compared to 83% of boomer and Silent Generation donors, the gap widens dramatically for causes like human rights and social justice, to which 85% of younger donors contribute, compared to just 43% of their older counterparts. This suggests a broader definition of philanthropy that encompasses systemic change alongside immediate relief.
The Appeal of Donor-Advised Funds
Nowhere is this generational shift more apparent than in the adoption of donor-advised funds. Currently used by nearly one in 10 wealthy individuals, DAFs represent a sophisticated middle ground between direct giving and establishing a private foundation, offering many of the benefits of both while avoiding some of the complexity and overhead. Gen Z and millennial donors use DAFs at roughly twice the rate of their older counterparts.
The appeal is undeniable. Among current users, satisfaction rates are extraordinarily high: 98% cite the ability to invest assets for tax-free growth, 96% appreciate maximized tax benefits, 94% value the simplified giving process and 91% recognize how DAFs support long-term philanthropic goals.
DAFs also resonate with younger donors because they allow them to make substantial charitable commitments while maintaining control over when and how those gifts become public.
The study found that 21% of DAF users contributed more than $100,000 to their accounts in the past year, and 75% said they’re likely to increase their contributions over the next three years.
For those individuals who don’t currently use DAFs, a knowledge deficit of how the charitable vehicle works seems to be the culprit—only 14% of those cohorts strongly agree they understand how these funds work.
Bridging the Gap
What can explain the older generations’ lack of faith that the next generation is prepared to carry on the family legacy? Perhaps these doubts reflect genuine readiness gaps or simply the perennial anxiety of one generation about the next. Generational differences may also be at play—a decline in perceived alignment. Only 59% of wealthy individuals say they and their children take essentially the same approach to achieving philanthropic goals, down from 70% in 2024. Similarly, just 56% believe their children support the same causes they do.
The fact that 73% of wealthy individuals now discuss philanthropic values with their children, nearly double the rate of previous generations, is encouraging, but these conversations may not be bridging the perception gap.
“Younger donors want to honor the charitable traditions that shaped them, but they also want to define their own impact. The opportunity for families is to engage the next generation early, creating a shared vision for giving while allowing room for new priorities and approaches,” said Jennifer Chandler, Head of Philanthropic Solutions at Bank of America Private Bank.
