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By Christin Fejervary
Millennial Christians and their generational peers are in the process of becoming stewards of the largest amount of wealth that has ever passed from one generation to the next. Roughly $124 trillion will shift from the current generation to the next as the Great Wealth Transfer transpires. The next generation is poised to become power players on the global philanthropic scene in the wake of USAID spending freezes and cuts.
Understanding what they feel and think about wealth is important, as it holds clues to how they’ll give — and to whom. So, they were asked them about it.
Research from National Christian Foundation (NCF) suggests that there are some important differences between the Christian philanthropic culture of today and the Christian philanthropy that might form as the Great Wealth Transfer continues.
In fact, the next generation of givers have already begun changing the landscape. NCF interviewed 360 Millennial Christians (ages 28-45). Of these, 159 had a high net worth of at least $1 million in investible assets. These interviewees came from NCF and partner organizations’ sphere of engagement. The questions explored their perception of wealth, stewardship, and their faith. The responses provided insights into how they think and how their giving behaviors will manifest themselves in the years to come.
They Won’t Give The Way Their Parents Did
These next-generation “stewards” — which is the word given to someone who has either created, inherited, or been entrusted with wealth — believe along with the current generation of stewards (those 45 years or older) that their wealth belongs to God, but only 60% of this younger cohort feel called to give in the same way as their parents. This shift will have striking implications for philanthropy as the next generation’s priorities will set the tone for stewardship and giving for the coming decades.
It’s Not Where, But How
The next generation of stewards wants to make more than a financial contribution.
Finances are only one way they can or currently choose to make a difference in the world. But the next-gen givers and stewards showed a shift toward the local community and involvement far beyond financial gifts. They’re hands-on, dynamic, creative givers.
The next generation tends to prioritize communities, rather than institutions. Only half of next-generation stewards responded they felt strongly aligned with the church as an institution, in contrast to the 74% of current-generation stewards who feel that way. But, 78% of the next generation reported a stronger sense of belonging from their local faith community.
This sense of belonging to communities rather than institutions helps explain why next-generation stewards are more likely to direct their giving and volunteering toward grassroots initiatives, local ministries, and community-driven efforts. More than 90% of the next generation of Christian stewards responded that they want to support groups and charities that make an impact for the better on the communities they live in.
Giving Partly Determined By Source Of Wealth
The source of next-generation stewards’ wealth influences precisely how they hope to support those groups — and which groups they might choose to support. For “hybrid” stewards, those who have both created wealth and will inherit or take stewardship of wealth, the contribution of their talents becomes markedly important. More than three-quarters (77%) prefer to work directly with charities to use their talents for greater impact.
Wealth creators and “hybrids” share preferential involvement, as well. They tend to prioritize the support of innovative, new, or start-up groups at least 10% more than other groups from the next generation. The next generation of stewards stands apart in their desire for personal involvement, as well, and in their preference for innovative groups.
Transfer Of Wealth Straining Some Families
The research also showed that some demographic groups tend to feel left out of the conversation, or unprepared for the Great Wealth Transfer. For example, women are far less likely to feel they have a voice in important financial decisions and tend to feel concerned about family wealth management more often than men.
Additionally, more than one-third of next-gen stewards who have not created wealth but stand to inherit it reported feeling “uninformed.” This demographic reported feeling more burdened and overwhelmed by the prospect of wealth management than those who had contributed to wealth creation.
The research also found that agency was a key factor in determining whether a steward’s view on wealth was broadly negative or positive, though the responses were almost always complex. Those in the next generation who already had experience creating, giving and utilizing wealth reported more confidence, peace, gratitude, and joy than those who had not yet been involved.
As this monumental amount of wealth changes hands, both generations have a historic opportunity to convene over what matters most to them and establish a new global culture of giving together.
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Christin Fejervary is vice president of brand & customer experience at the National Christian Foundation in Alpharetta, Georgia.
