The Wealthy's Young Generation Push for Speedy Philanthropy
Younger generations of the super-rich are shaking things up, pushing to distribute wealth faster and more effectively. They're eager to make a difference amidst the massive wealth transfer expected to happen over the next few decades. As the gap between the rich and the poor continues to widen, questions are arising about how quickly the rich are making good on their promises to give back to society.
The younger generations are exerting increasing influence over their family's finances, leading to what some predict will be a "wake-up call" in the world of philanthropy. "The wealth gap is larger than ever before, and people are keeping a close eye on the rich," said a co-author of a report on the changing dynamics of philanthropy.
Change in Philanthropic Strategy
For many years, philanthropy has focused on legacy-building and long-term donations. Several of the world's wealthiest families have committed to giving away a significant portion of their fortunes. However, as the super-rich face increasing scrutiny, many younger generations realize that their families' philanthropic efforts aren't happening quickly enough.
One leader of a group that assists in shaping philanthropic strategies for wealthy families noted a shift. Children and grandchildren of the rich are encouraging the older generations to give more, take more risks, and place more trust in the communities they aim to assist. "I see more young people pushing their parents to give more," she said. There's a message being sent: "You've made enough money. It's time to start giving it away more quickly."
Young Heirs Changing the Philanthropy Game
Over the past few years, the wealth of the top 1% has grown dramatically. This growth has sparked strong emotions, especially among young people. A significant portion of young adults believes it is morally wrong to be "extremely rich." This perspective is likely influenced by the economic challenges they face, such as high housing costs, student debt, and the rising cost of everyday necessities. It also shapes how many young heirs view their responsibility to use wealth urgently and strategically.
"They don't necessarily see themselves as philanthropists," said the report's co-author. "They see themselves as angel investors, impact investors, change makers, and advocates."
Instead of just handing out checks, the younger generation is focusing on funding systemic change through impact investing, advocacy, and venture-style philanthropy. Many prioritize causes like climate change, racial justice, and gender equality over other generations' broader focus on topics like health and education.
There's also an increased interest in tackling the root causes of societal problems, rather than just providing short-term solutions. This approach involves asking critical questions about why certain issues exist and how to prevent them.
Women Taking the Lead in Philanthropy
Women are expected to play a key role in the transformation of philanthropy. By the middle of this century, they are projected to inherit around 56% of all inherited wealth globally. The report's co-author expects more women will likely follow the lead of other influential philanthropists and partner with communities to deliver solutions-based impact with their giving.
A Personal Perspective on Philanthropy
One woman who grew up in a high-net-worth family shares her personal journey with philanthropy. Her grandfather made his fortune in oil and real estate. From a young age, she was intrigued by how wealth could be used to help others. After spending several years abroad working with Indigenous communities, she realized that real solutions often come from the communities themselves, not from outside wealth or expertise.
At 25, she began working at her family's foundation, where she applied what she had learned. She simplified the grantmaking processes and shifted more decision-making power towards local communities. After her grandfather passed away, she took over the foundation. Despite the professional structures put in place, she understood that family dynamics played a significant role in the foundation's workings.
Over its nearly five decades, the foundation has donated almost $1 billion to causes mainly focused on sustainability—including land, water, and energy—as well as education. For her, the work is not just about preserving her grandfather's legacy, but also about accelerating it. She hopes that more heirs will adopt this mindset in the future.
Younger generations of the super-rich are shaking things up, pushing to distribute wealth faster and more effectively. They're eager to make a difference amidst the massive wealth transfer expected to happen over the next few decades. As the gap between the rich and the poor continues to widen, questions are arising about how quickly the rich are making good on their promises to give back to society.
The younger generations are exerting increasing influence over their family's finances, leading to what some predict will be a "wake-up call" in the world of philanthropy. "The wealth gap is larger than ever before, and people are keeping a close eye on the rich," said a co-author of a report on the changing dynamics of philanthropy.
Change in Philanthropic Strategy
For many years, philanthropy has focused on legacy-building and long-term donations. Several of the world's wealthiest families have committed to giving away a significant portion of their fortunes. However, as the super-rich face increasing scrutiny, many younger generations realize that their families' philanthropic efforts aren't happening quickly enough.
One leader of a group that assists in shaping philanthropic strategies for wealthy families noted a shift. Children and grandchildren of the rich are encouraging the older generations to give more, take more risks, and place more trust in the communities they aim to assist. "I see more young people pushing their parents to give more," she said. There's a message being sent: "You've made enough money. It's time to start giving it away more quickly."
Young Heirs Changing the Philanthropy Game
Over the past few years, the wealth of the top 1% has grown dramatically. This growth has sparked strong emotions, especially among young people. A significant portion of young adults believes it is morally wrong to be "extremely rich." This perspective is likely influenced by the economic challenges they face, such as high housing costs, student debt, and the rising cost of everyday necessities. It also shapes how many young heirs view their responsibility to use wealth urgently and strategically.
"They don't necessarily see themselves as philanthropists," said the report's co-author. "They see themselves as angel investors, impact investors, change makers, and advocates."
Instead of just handing out checks, the younger generation is focusing on funding systemic change through impact investing, advocacy, and venture-style philanthropy. Many prioritize causes like climate change, racial justice, and gender equality over other generations' broader focus on topics like health and education.
There's also an increased interest in tackling the root causes of societal problems, rather than just providing short-term solutions. This approach involves asking critical questions about why certain issues exist and how to prevent them.
Women Taking the Lead in Philanthropy
Women are expected to play a key role in the transformation of philanthropy. By the middle of this century, they are projected to inherit around 56% of all inherited wealth globally. The report's co-author expects more women will likely follow the lead of other influential philanthropists and partner with communities to deliver solutions-based impact with their giving.
A Personal Perspective on Philanthropy
One woman who grew up in a high-net-worth family shares her personal journey with philanthropy. Her grandfather made his fortune in oil and real estate. From a young age, she was intrigued by how wealth could be used to help others. After spending several years abroad working with Indigenous communities, she realized that real solutions often come from the communities themselves, not from outside wealth or expertise.
At 25, she began working at her family's foundation, where she applied what she had learned. She simplified the grantmaking processes and shifted more decision-making power towards local communities. After her grandfather passed away, she took over the foundation. Despite the professional structures put in place, she understood that family dynamics played a significant role in the foundation's workings.
Over its nearly five decades, the foundation has donated almost $1 billion to causes mainly focused on sustainability—including land, water, and energy—as well as education. For her, the work is not just about preserving her grandfather's legacy, but also about accelerating it. She hopes that more heirs will adopt this mindset in the future.