A heads-up from the US to non-profits comes in the form of a new report on the next generation of philanthropists that highlights a focus on impact, values-based giving and high engagement.
The #Next Gen Donors report from the Dorothy A. Johnson Center for Philanthropy and 21/64 gives the first real glimpse into the minds of the philanthropic millenials: wealthy individuals, or individuals who will inherit wealth, born between 1964-2000.
This next generation of philanthropists is so critical because it’s estimated that $41 trillion will transfer from the Baby Boom to these next generations in the next 40 years. And since much of this wealth could become philanthropic, some have predicted “a new golden age of philanthropy.”
So non-profits might do well to pay attention to the findings that show they want to fundamentally change philanthropy. According to the report: “They want to make philanthropy more impactful, more hands-on, more networked.” These are factors we see in philanthropy among UK Millennials as networks such as Young Philanthropy show. youngphilanthropy.org.uk
The key findings from the report are that these NextGen donors are:
- Focused on Impact. “They see previous generations as more motivated by a desire for recognition or social requirements, while they see themselves as focused on impact, first and foremost.”
- Giving Based on Values. “They fund many of the same causes that their families support and even give locally, so long as that philanthropy fits with their personal values.”
- Looking to Be Engaged. “Giving without significant, hands-on engagement feels to them like a hollow investment with little assurance of impact.”
- Paving Their Own Way. “While they respect their families’ legacies and continue to give to similar causes and in similar ways as their families, they are also eager to revolutionize philanthropy.”
- See more at: http://www.socialvelocity.net/2013/02/nextgen-donors-and-the-new-golden-age-of-philanthropy/#sthash.ETk8eBRZ.dpuf This first-of-its-kind research examines the next generation of major donors and studies this crucial group directly, rather than summarizing what others think about them.
This project is a partnership of The Frey Chair for Family Philanthropy program at the Johnson Center for Philanthropy, and 21/64, a nonprofit consulting practice specializing in next gen and multigenerational strategic philanthropy. These two organisations, although different in form and scope, share a focus on understanding and improving family philanthropy. The combined effort for this project aims to:
- Reflect back to these donors what we hear them saying about themselves in order to help them become more proactive donors, stewards, grantmakers, and agents of social change;
- Encourage and inform conversations among multiple generations involved in philanthropy today and in the future;
- Help those who seek to engage and assist these next gen donors to do so in more effective and productive ways, to inspire them and help them make change.
Download the full report for more details http://www.nextgendonors.org/##section-resource.