#United States #New York #Bank of America #Gen Z donors #Millennial donors

Understanding the Shift in Philanthropy

Recent research conducted by Bank of America Private Bank reveals that a generational shift is taking place within the realm of philanthropy, particularly among Gen Z and Millennial donors. These younger benefactors are challenging traditional norms, expanding their charitable outreach, and embracing a variety of giving methods. With this transformation comes a mixture of optimism and concern about the future of philanthropic succession in American society.

The New Generation's Approach to Giving

The Bank of America study indicates that nearly 90% of affluent Americans contributed to charitable causes in 2025, with Gen Z and Millennial donors at the forefront. On average, these younger donors supported twelve different charitable causes—a significant increase compared to the eight causes typically supported by older, wealthy donors. This broader engagement signifies a key trend: younger generations are not only more willing to donate, but they are also more adventurous in selecting the causes they care about.

In terms of how they give, Gen Z and Millennial donors are moving away from traditional cash donations, with only 56% opting for direct contributions, in stark contrast to 92% of Baby Boomers and those from the Silent Generation who still prefer cash donations. Instead, they are leveraging various philanthropic tools such as charitable trusts (47% versus 5% in older generations), family foundations (24% against 2%), fundraising efforts (30% compared to 11%), and mentorship initiatives (26% compared to just 4%). This diverse toolbox allows them to create a more personal approach to philanthropy, balancing familial traditions with a desire to establish their own charitable identities.

However, the study also highlights a slight disconnect; only 65% of parents feel their children share their commitment to philanthropy, a noticeable drop from 76% in 2024. Furthermore, fewer than half of wealthy Americans—only 47%—believe the younger generation is ready to take on the leadership of family philanthropic endeavors, down from 55% the previous year. This perception indicates a growing concern regarding the preparedness of younger donors to carry on their families' charitable legacies.

Trends in Charitable Engagement

Despite this uncertainty about the next generation's readiness, charitable giving remains robust. 89% of wealthy Americans made donations in 2025, predominantly supporting essential needs (86%), healthcare (72%), and disaster relief efforts (68%). The motivations behind this engagement are compelling: 87% of the affluent donors express a belief that their contributions significantly impact the world, while 83% cite personal values as a core reason for their philanthropic actions.

Moreover, volunteerism is on the rise, with 49% of wealthy individuals giving their time in 2025, a marked increase from 42% in 2023. This evolving landscape reflects a broader trend where donors are looking to create meaningful impacts beyond mere financial contributions. Yet, despite these shifts, approximately 25% of affluent givers confess they do not measure the effectiveness of their donations, a trend that is concerning for the future of impactful giving.

The Potential of Donor-Advised Funds

Donor-advised funds (DAFs) are also gaining traction, especially among younger donors, with about one in ten wealthy individuals utilizing this philanthropic vehicle. Adoption rates are nearly twice as high among Gen Z and Millennial demographics, with 75% of DAF participants intending to increase their contributions over the next three years. Users cite substantial benefits of DAFs: 98% value the potential for tax-free growth, 96% appreciate the maximization of tax benefits, and 94% enjoy the simplification of charitable donations.

Interestingly, there is still a knowledge gap about DAFs; only 14% of non-users are confident in their understanding of how these funds work. This suggests that educational initiatives could play a critical role in enhancing the philanthropic landscape.

Conclusion

The findings from Bank of America's study underscore that the world of philanthropy is in a period of significant transition, driven largely by Gen Z and Millennial donors. Their advocacy for a broader and more individualized approach to giving challenges traditional paradigms while also raising questions about future leadership and continuity in charitable endeavors. As philanthropic practices evolve, the potential for enriching family connections through shared charitable missions could serve as a bridge between generations, ultimately fostering a deeper, more impactful culture of giving.