Age Vs. Youth: Donors See Impact Differently

Affluent individuals are highly engaged in philanthropic activities, with 91% reporting charitable donations in the past year, according to a Bank of America study. The research reveals that passion for giving is strong across all age groups, with 88% of younger donors (ages 21–43) expressing readiness to embrace philanthropic causes in the future.

Despite this overall enthusiasm, the study uncovers generational and gender-based differences in motivations and methods of giving. Conducted by Escalent for Bank of America Private Bank, the study surveyed over 1,000 individuals aged 21 and older with at least $3 million in investable assets. The results carry a margin of error of +/- 3%, with 95% confidence.

Younger donors often seek hands-on involvement in their giving, showing higher rates of engagement in volunteering (43% vs. 41% among older donors), fundraising (29% vs. 14%), and mentorship (25% vs. 6%). They also favor direct action (71% compared to 48% of older donors), whereas older donors primarily prefer direct financial contributions (90% vs. 49%).

Inheriting wealth plays a role in how younger donors approach giving. They are more likely to use structured giving vehicles such as charitable trusts (36% vs. 7%), family foundations (25% vs. 3%), and donor-advised funds (22% vs. 8%).

Motivations for philanthropy also differ by age. While both age groups cite a desire to make a lasting impact (63% younger, 69% older), older donors are more likely to be influenced by duty (56% vs. 25%), urgent issues (35% vs. 23%), and religious beliefs (31% vs. 23%).

Younger donors are more inspired by self-directed learning (24% vs. 9%), mentorship (18% vs. 5%), and their social circles (22% vs. 4%). Influences such as family traditions (26% vs. 22%) and personal life experiences (25% vs. 16%) are shared across generations, though slightly more prevalent among the younger group.

There’s a notable generational divide in how prepared each group feels the younger generation is to lead in philanthropy. While 88% of younger respondents believe their generation is ready for leadership and 86% think they’ll outperform previous generations, only 50% of older individuals agree.

Despite different approaches—80% of younger donors say they give differently than their parents—88% still share their family’s commitment to giving. However, only 67% of older donors believe their children share their philanthropic style, and 73% feel younger generations are less committed overall.

Source: The Nonprofit Times