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  • Next Gen donors

Next Generation donors’ charitable giving interests and approaches examined in new study from Indiana University Lilly Family School of Philanthropy and DAFgiving360

Wednesday, January 29, 2025

See the infographic

Generation Z, Millennial donors are issue driven and technology focused, report shows

Generation Z and Millennial donors are approaching charitable giving differently than the generations that came before them, according to a new report from the Indiana University Lilly Family School of Philanthropy.

Dynamic social, economic, and political shifts, globalization, and technological advancements over the last 20 years have reshaped how next-generation donors engage with the philanthropic sector. The Next Generation of Philanthropy study analyzes the interests and needs of younger donors, their evolving patterns of giving, and the opportunities and challenges those present. The report also examines younger donors’ motivations, their attitudes toward giving, the causes they support and their preferred methods for making donations and evaluating the impact. The research was completed with funding from DAFgiving360™.

Gen Z and Millenials are reshaping charitable donations.

“Younger generations of donors are impacting philanthropy in positive ways by seeking long-term, hands-on involvement with the issues that are important to them. They rely heavily on technology to inform their giving decisions, and invest time into looking for trustworthy and transparent nonprofits to support,” said Amir Pasic, Ph.D., the Eugene R. Tempel Dean of the Lilly Family School of Philanthropy. “The generational differences reflected in our new research underscore the need for nonprofits to adapt to Next Gen views, preferences and practices in order to advance their missions and build the long-term relationships that sustain them.”

The new report highlights that Generation Z (born 1997-2012) and Millennial (born 1981-1996) donors focus their giving on supporting issues rather than specific organizations and consider themselves to be active social change agents. Next generation donors bring a decidedly tech-forward approach to all aspects of their philanthropy, including learning about and advocating for causes on social media and making donations online. They participate in crowdfunding at higher rates than older generations, and growing numbers of younger donors are giving through social media-based charity streaming events hosted by influencers.

Giving to education is less popular among younger generations

“A significant wealth transfer is currently underway, and some estimates indicate that $18 trillion will go to charity by 2048, creating the opportunity for next gen donors to have a significant charitable impact in the future,” said Fred Kaynor, Managing Director, Relationship Management, Marketing & Partnerships at DAFgiving360. “Generation Z and Millennials are passionate about and deeply connected to the causes they support. It’s incredibly important for charities to engage with their philanthropic spirit. In addition, the financial advisors who are guiding this next generation of donors should also recognize their distinct needs and priorities to better support them and to help maximize their giving potential.”

Key findings include:

  • Basic needs and religion are top causes for philanthropic giving across all generations from 2003 to 2021, while giving to education is less common for younger donors.
  • Generation Z giving to secular causes is similar to what Millennials gave at the same stage of life, despite an overall drop in secular giving. 
  • Compared to Millennials who gave to religious causes, Generation Z donors who gave to religion were significantly less likely to also support secular causes. This finding challenges the historical trend of religious donors being more inclined to also contribute to secular causes.
  • Giving across all generations has declined since 2008. In each stage of life, individuals are less likely to give than they were in 2003.

Many of the report’s key findings were derived using the Indiana University Lilly Family School of Philanthropy’s Philanthropy Panel Study (PPS), a module of the University of Michigan’s Panel Study of Income Dynamics (PSID), which has been tracking thousands of U.S. households since 2000. By following the same households over time, this longitudinal approach provides unique insights into changes in giving behavior within individuals, households, and families.

 

About the Lilly Family School of Philanthropy

The Indiana University Lilly Family School of Philanthropy at Indiana University Indianapolis is dedicated to improving philanthropy to improve the world by training and empowering students and professionals to be innovators and leaders who create positive and lasting change. The school offers a comprehensive approach to philanthropy through its undergraduate, graduate, certificate and professional development programs, its research and international programs, and through The Fund Raising School, Lake Institute on Faith & Giving, the Mays Family Institute on Diverse Philanthropy and the Women’s Philanthropy Institute. Follow us on X (formerly known as Twitter),LinkedIn, or Instagram and “Like” us on Facebook.

About DAFgiving360, formerly Schwab Charitable

DAFgiving360™ is an independent 501(c)(3) public charity with a mission to increase charitable giving in the U.S. DAFgiving360 does this by providing a tax-smart and simple giving solution of a donor-advised fund (DAF) account to donors and financial advisors. Since our founding in 1999 as a 501(c)(3) public charity, DAFgiving360 donors have recommended nearly $36 billion in grants to more than 255,000 charities. Visit dafgiving360.org to learn more.

Research for The Next Generation of Philanthropy study was completed with funding from DAFgiving360. The findings and conclusions contained within are those of the authors and do not necessarily reflect official positions or policies of DAFgiving360.

DAFgiving360™ is the name used for the combined programs and services of Donor Advised Charitable Giving, Inc., an independent nonprofit organization which has entered into service agreements with certain subsidiaries of The Charles Schwab Corporation. DAFgiving360 is a tax-exempt public charity as described in Sections 501(c)(3), 509(a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code.

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