We recently surveyed 1,000 Gen Z and Millennials who are actively involved in charitable giving. While analyzing their responses, we found that there are three specific areas that set them apart from older generations—and signal the potential for greater social impact.
#1: They View Themselves Differently
First, Gen Z and Millennials are more likely to see themselves as “givers,” “volunteers,” “advocates,” “changemakers,” and “humanitarians”—terms that are heavily action-oriented. They associate giving with a range of activities that create social change from the ground up, rather than a one-time donation. In their view, giving is a lifelong commitment—one that is reflected in other choices like how they spend their time, the brands they support and the causes they amplify.
#2: They Started Early In Life
Importantly, the way younger generations see the world and themselves in it has encouraged earlier, enthusiastic involvement without concern for tradition or optimization. According to our study, Millennials who engage in charitable activities started at an average age of 18. Gen Z started even younger — at age 14. Both cite a variety of activities, including volunteer days and food/clothing/supplies drives through school, religious organizations and employers that helped raise awareness at an early age and provide a framework for continued involvement.
#3: They Want to Learn More
While general knowledge of more formal giving approaches and vehicles is limited among both Gen Z and Millennials, they express interest in learning more without letting their lack of knowledge impede their willingness to take action, make financial donations or assist with fundraising. Excitingly, this means that as they explore more resources and accelerate their giving, they may be able to drive even greater impact by pursuing a combination of techniques and vehicles to drive optimal outcomes.
In concert, these three qualities – a natural instinct for advocacy, an early start and a bias for action – illustrate a portrait of aware, engaged and values-driven givers who have the potential to effect real change in their lifetimes.
While there may be some differences, our research also revealed that many of their motivations and behaviors are similar to what we see in Gen Xers and Boomers. These four core characteristics are remarkably consistent across all generations of giving.
- Family fuels inspiration and action. All generations give credit for their charitable impulses to having grown up in families that give back. For Gen Z and Millennials in particular, family is one of their primary drivers for getting involved in giving.
- More financial resources yield bigger gifts. Monetary donations are more common among higher earners, college graduates, employed individuals and older members of each generation. And higher earners donate greater amounts.
- They differ based on gender. Women are more likely than men to want to make an impactful change to a cause and demonstrate their family’s values, while men are more likely than women to want to create or continue a legacy.
- Giving comes in many forms. Financial contributions are critical, and nonprofits need them to continue operating, but there are many ways to give and most charitably-inclined individuals tend to combine a variety of activities to give back to their communities and the causes they care about. Beyond cash or assets, the most common approaches are donating items, volunteering time, fundraising and sharing expertise and knowledge.
The philanthropic community should carefully consider how to engage with the next generation based on their unique experiences, perspectives and preferences around charitable giving. The good news is that private foundations, financial advisors and nonprofits won’t be starting from scratch. There are still many similarities between younger and older generations, which can help them find common ground to get aligned around how, why and where to give. These insights create opportunities to bring generations together to pool capital and intellectual resources, and spark more difficult conversations that might challenge traditional modes of thinking. Together, these two truths can propel charitable giving into the future. Growing pains are expected, and so too is a vibrant and forward-thinking culture of giving that drives bigger and more impactful outcomes.
For more insights, view the full report.
Questions in the meantime?
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