The Great Wealth Transfer is one of the most discussed topics among advisors and clients. Rightly so. The movement of trillions of dollars from one generation to the next is unprecedented—and it’s already underway for some families. But there’s another transition happening alongside it, one that matters deeply to the families involved: the transfer of values.
For donors with an established giving practice, what gets passed down to the next generation isn’t only assets. It’s a way of making an impact in the world.
For advisors, helping a family build that practice and structure to outlast a single generation is some of the most meaningful work in wealth management. A donor-advised fund (DAF) makes passing on that legacy of generosity both practical and lasting.
A Generation Ready to Give
One of the most encouraging characteristics of the next generation of donors is that they are already motivated to make a difference. According to our Shaping Tomorrow report, Gen Z began their charitable activities at an average age of 14. For many, giving started as a family tradition before it became a personal one. Family is identified as the primary driver of charitable engagement for both Gen Z and Millennials with 80% aspiring to be known as “givers.”
Rising generations aren’t passive inheritors of wealth. They are individuals who already see generosity as part of who they are and that generosity, in many cases, can be traced back to the values they witnessed from their families.
For advisors, this is important. In conversations about how a family’s philanthropic legacy continues, keep in mind that the next generation is already looking for ways to make a meaningful contribution.
How a DAF Supports Shared Generosity
A DAF isn’t just a tax-efficient giving vehicle. In the context of family philanthropy, it’s an ideal structure for transferring a giving practice alongside assets.
For example, DAF users can designate loved ones as successor advisors on their DAF accounts to continue giving past their lifetime. This ensures the fund sustains support for the causes that matter most to the family for years to come.
But there’s a meaningful opportunity that can happen before that transfer. A DAF provides families a shared vehicle for giving now. A DAF account can serve as a place where the next generation can be involved in grant recommendations, explore causes, and develop the habits that make a giving practice last. Generosity, when practiced together, becomes part of a family’s identity in a way that endures.
For advisors, this opens a different kind of conversation: not just what assets clients plan to leave behind, but what legacy of generosity they want to build together, starting today.
Like any lasting practice, generosity is most durable when it starts early and is built together. A DAF gives families the structure to do exactly that — to give with intention now, and to pass on a legacy of generosity for generations to come.
Learn more about our modern, scalable DAF solutions for every donor and community. Schedule a call or call us at 800-839-0054. Together let’s #begiving.
