Wealthy Americans Are Changing Their Charity Habits, And Leaving Gen Z and Millennials Out Of The Process

The number of wealthy Americans including their younger relatives in the charity donation decision-making process is falling, according to Bank of America (NYSE:BAC).

Only 13% of affluent households consult their children, grandchildren, and other younger relatives when deciding what charitable causes to support, the survey found. That's down from 16.5% who collaborated with younger people in 2023, the last time the biennial Study of Philanthropy was released.

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Bank of America, which partners with the Indiana University Lilly Family School of Philanthropy for the survey, said on its website the findings present "an opportunity to cultivate future philanthropists among Millennials and Gen Z."

There was also a slight dip in the amount of money younger people may receive from their families' fortunes. Children and grandchildren of philanthropists are expected to receive 75% of their ancestors' household wealth, compared to 75.7% from the last survey. The rest will be split among religious and secular charities and other non-spouse heirs, according to the survey. 

Wealthy donors are changing the way they give 

Philanthropists are increasingly utilizing giving vehicles, or private foundations, donor-advised funds, endowment funds, and wills with specific charitable provisions, the survey found.  

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Almost 1 in 5 charitable donations were done through a giving vehicle, up from 11% in 2015. Nearly a quarter of all affluent households now have a giving vehicle and 48% of households worth $5-$20 million plan on establishing one in the next three years, according to the survey.

Some donors are also becoming more involved with the charities they're donating to, with 62% of self-described "expert donors" tracking their gifts' effectiveness, compared to 20% of overall wealthy donors. These donors also tend to donate on average six times more than "novice donors," according to the survey. 

More than three-quarters of expert donors said their donation had its intended effect, compared to 40% of all donors surveyed.

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More affluent Americans are volunteering

Wealthy donors volunteered an average of 120 hours across at least two organizations in 2024, according to the survey. While the number of volunteers is still below pre-COVID numbers, 43% of donors said they volunteered, up from 37% two years ago.

Volunteering was also connected to increased financial donations, with volunteers donating on average two and a half times more than non-volunteers, the survey said. 

Distributing basic needs items and volunteering for religious organizations were the most popular volunteer activities, at 36% and 29%, respectively. 

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