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Wealthy individuals are deeply committed to their passions and that includes philanthropy. More than nine in 10 (91%) respondents to a Bank of America study of affluent individuals made a charitable contribution during the past year.
A similarly high percentage (88%) of younger donors (ages 21 to 43) responded they are prepared to take on philanthropic causes moving forward. Even still, there are generational and gender differences in motivations, causes supported and more are borne out by the data.
Bank of America Private Bank, using independent market research firm Escalent, surveyed more than 1,000 respondents (ages 21 and older) with at least $3 million in investable assets to examine philanthropic trends and engagement among high-net-worth individuals. The margin of error is +/- 3, reported at a 95% confidence level.
While monetary gifts are the most common form of philanthropic involvement, many younger donors also prioritize direct action (71% younger vs. 48% older), including volunteering (43% vs. 41%), fundraising (29% vs. 14%) and mentorship (25% vs. 6%).
By comparison, nine in 10 donors ages 44 and older rely on direct giving as their preferred philanthropic approach compared to 49% of younger donors.
Since many are inheritors of wealth, younger generations are also more likely to use giving vehicles, including charitable trusts (36% younger vs. 7% older), leveraging family foundations (25% vs. 3%) and donor-advised funds (22% vs. 8%).
Age remains an influential factor in one’s motivations. However,
the aspiration to create a lasting positive impact unites wealthy individuals. When asked about their reasons for giving, all generations are motivated by making a lasting impact (63% younger and 69% older).
Older respondents are more than twice as likely to be driven by a sense of obligation (56% older vs. 25% younger), as well as feeling the need to respond to an urgent issue (35% vs. 23%) and their faith traditions (31% vs. 23%).
The gap between motivations for giving by younger and older respondents becomes more pronounced when examining self-education (24% younger vs. 9% older), mentorship (18% vs. 5%) and the influence of their social circle (22% vs. 4%). Family traditions (26% younger vs. 22% older) and life journey (25% vs. 16%) resonate as sources of inspiration across both age groups, though slightly more so among younger respondents.
Older generations show apprehension about the future of philanthropy and how younger individuals might support it. Polling showed that 88% of younger respondents thought their generation is prepared to assume philanthropic leadership, and 86% believe the next generation will be more effective than those who came before them.
In contrast, only 50% of older respondents think the next generation is prepared to take on and support philanthropic causes. Many younger donors said they take a different approach to philanthropy (80%) than the previous generation but share their parents’ commitment to giving back (88%).
Again, older donors’ responses show the inverse: they perceive their children to share their philanthropic approach (67%) but demonstrate lower levels of commitment (73%).
