Connected Giving | September 2019 edition
Welcome to the September edition of Connected Giving, Australian Executor Trustees monthly update on current trends and news in philanthropy.
Philanthropy through a millennial lens
This month’s industry news looks at the role that millennials play in reshaping and reinvigorating philanthropy, as well as the intergenerational transfer of wealth more broadly.
We begin by looking at a study of giving behaviours by Australia’s millennials and youth. Following this we take a deep dive into America’s millennials and youth to identify the common traits. Given that millennials are a socially engaged generation with 84% reportedly giving to charities, there are a few tips for organisations and wealth advisers to stay relevant and engage a millennial donor.
A report by Wealth X tracking intergenerational wealth transfers has shown that more than $15 trillion in wealth will be transitioned to the next generation in the next ten years. With this huge shift taking place, we look at what the next generation seeks to do with this wealth, creating a legacy of giving and philanthropy during their lifetime, and how to mitigate against some challenges with engaging in philanthropy as wealth is transferred to the next generation.
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Jump to any one of the edition’s articles by clicking the links below:
- State of the nation: a new report into our giving behaviours reveals that Australia’s youth are our most giving generation
- A new study of 150,000 millennials reveals they have ten things in common
- What a Millennial donor wants
- How millennials are changing philanthropy
- A generational shift: family wealth transfer report 2019
- Engaging the next generation in philanthropy
- Mitigating challenges in multigenerational giving
State of the nation: a new report into our giving behaviours reveals that Australia’s youth are our most giving generation
A 2019 report by the Australian government shows our youth are leading the way as the most generous givers in the nation, with both time and money. Other key findings include the need for transparency and thorough regulation before giving to a charity or not-for-profit, generation Z and millennials are ten times more likely to support human rights protections than older generation, and women are more interested in giving to animal welfare charities (20% vs 13%) whereas men are more likely to give to environmental protection initiatives (17% vs 10%). Read the full article (8 mins).
A new study of 150,000 millennials reveals they have ten things in common
The Case Foundation has released the final report of its ten year research analysing how American millennials interact with social causes and issues, and have identified ten common traits. The report focuses on how millennials seek out opportunities to have a positive impact on society, and question norms that act as a barrier for social change. They believe in activism, and use their votes to reflect this. To a degree not seen in any other generation, millennials are reported to express more compassion and empathy for others, being able to see themselves in the shoes of others who may be dissimilar to themselves. The social issues that American millennials consistently care about include civil rights/racial discrimination, healthcare, education and employment. Read the full article (3 mins).
What a Millennial donor wants
As millennials are now well established as a quarter of the global population, and soon to make up the majority of the workforce, it’s time to pay attention to the ways in which this demographic is interacting with social causes and societal change. A decade-long research report found that millennials identify with issues above institutions, believe in activism, and take action in whatever large or small way that they can. The report states that to stay relevant, organisations need to forge more genuine relationships by viewing any contribution and involvement in the cause as being valuable. Read the full article (7 mins).
How millennials are changing philanthropy
Millennials will be the largest demographic in the workforce by 2020 and while they are reshaping the workforce, they are also reshaping philanthropy. Considering that millennials are often far from earning the same as their baby boomer and generation X colleagues, it is encouraging to see that 84 percent of millennials give to charities. Not-for-profit organisations are encouraged to connect with this increasingly important demographic and some of the key ways to do this are to ask for more than money, tell stories, keep the cause simple and communicate urgency. Read the full article (5 mins).
A generational shift: family wealth transfer report 2019
By the year 2030, more than $15 trillion in wealth will be transitioned from one generation to the next. Wealth X has been tracking wealth transfer issues of the high-net-worth population. Key findings include where the wealth is located, a growing awareness of this impending wealth transfer, and a shift in how the next generation will view and use their wealth. Importantly, this new generation seeks not only to preserve this wealth, but also to find meaning in the way it is used. Read the full article and download the report (5 mins).
Engaging the next generation in philanthropy
Creating a legacy of giving and philanthropy starts with cultivating the next generation’s philanthropic involvement. Getting family members involved in philanthropy may be an important part of your wealth transfer plan. The key trends that shape generations may lead to a better understanding of decisions and values between generations. In turn, this can result in a more fruitful conversation around philanthropy. Read the full article (8 mins).
Mitigating challenges in multigenerational giving
Including children and grandchildren in philanthropy allows all family members to share experiences and collectively contribute to societal change or a good cause, while also role-modelling social values and community awareness. There are however several challenges that can interrupt this process, especially as families age. Issues such as ownership and control, strained relationships and differing interests and interrupt philanthropic traditions within families. This article discusses some of the challenges that families and their financial advisers can plan for and mitigate against. Read the full article (7 mins).