Is Your Nonprofit Ready For the Next Generation of Philanthropists? 

Is your nonprofit ready for the next generation of philanthropists? 

Over the next two decades, an estimated $84.4 trillion in assets will be passed down from the Silent Generation and baby boomers to their loved ones in what’s being called the Great Wealth Transfer. This unprecedented shift in resources will transform nearly every facet of the economy - including philanthropy.  

Much of this wealth will be controlled by a new generation of philanthropists: millennials and Gen Z individuals who think differently, give differently, and expect more from the organizations they support. And let’s not forget about Gen X - while millennials are now the largest generation in terms of representation in the workforce, Gen X holds approximately $46 trillion in assets, and a greater percentage of Gen Xers volunteer their time to charity than any other generation [NonProfit Pro].  

Nonprofits who want to appeal to new ways of philanthropic thinking will need to look beyond what has worked well in the past. Next-gen donors are values-driven, focused on impact, and digitally fluent, and they’re actively shaping philanthropy as we know it. 

So what does that mean for nonprofits? Understanding next-gen donors’ priorities is the first step towards building strong, lasting relationships.

What Next-Gen Donors Want 

1. Clear and measurable impact
   Transparency is key. Next-gen donors want to know how their resources are making a difference, and they want to see data. Fidelity Charitable found that 66% of Millennials and 40% of Gen Xers track results for most or all of the nonprofits they support, compared to 32% of baby boomers. Nonprofits should make it easy for potential donors to get closer to the work and access information about their mission and impact. Publicly available impact statements and social media content illustrating results in creative, visual ways can influence donors who want to make an informed decision.
   
   
   

2. Alignment with their values
   Younger donors are finding their own paths. Rather than donating to causes familiar to them or their families, they are more likely to seek out causes that align with their personal values. For example, a Schuler Education Foundation survey of more than 7,000 alumni from leading colleges found that graduates decide whether to contribute to their alma mater “because of personal allegiance to the institution and how they perceive the college’s alignment with their moral leanings.” Being clear about your mission and motives can help potential donors identify where they align with your work.
   
   
   

3. Deeper connection
   Next-gen philanthropists want to be active partners in creating change, often beyond writing a check. As donors shift from transactional relationships towards participatory philanthropy, having a clear strategic plan can help potential donors and volunteers understand exactly how they can help. 

A Strategic Shift Requires A Strategic Plan 

The ongoing generational shift is not just a challenge, but an opportunity. Nonprofits who think strategically about understanding and adapting to next-gen donor expectations will be better positioned to build meaningful, long-term support over the coming decades. 

Now is the time to ask: 

• Are we clearly communicating our impact in ways that resonate with donors of different generations and mindsets?

• Do our mission and values show up clearly in our strategy and operations? 

• Are we creating opportunities for donors to move beyond a transactional relationship and participate meaningfully in our work? 

These questions are just a starting point. The next generation of philanthropists is here, and it’s critical to meet them where they are - with clear impact, strong values, and deep connections.