There is a reason it may feel like baby boomers are fading away and the millennials are taking over the world. Looking at the world population, nearly 26% are younger than 14, 16% are between 14 and 25, and 8% are older than 65. This leaves approximately half of the global population between 25 and 65. Based on data taken from financial advisors, this group of donors, known as next-generation philanthropists, is reshaping the way they handle their wealth.
One area that is already noticeably different is the level of involvement in spending and how decisions are being made. Instead of solely relying on financial advisors, next-generation philanthropists will now be giving equal time to nonprofit development experts. In addition, younger philanthropists want a more hands-on, interactive experience that will form a long-term relationship with an organization or cause instead of just writing a check. Along these lines, these next-generation donors will want to invest in companies that have deep bonds with their surrounding communities, as well.
Rather than giving money to crisis relief funds, there is also a growing interest in funding groups that already have a foothold in areas that need help long-term, not just when disaster strikes. Smaller, independent charities are now getting support directly from funders. Another trend among next-generation donors is supporting organizations that help people become more self-sufficient and less dependent on aid long-term.
Discoveries are also being made about how to help a community truly. Taking a more in-depth look into how resources can benefit a population, altruists of today understand that literacy issues won’t be solved simply by delivering masses of books or building a school. There needs to be attention spent addressing the most basic human needs of clean water, sleep, access to electricity, and better nutrition before more significant issues like literacy can be tackled. Collectively addressing multiple community issues is more effective than putting out fires one at a time because they understand everything is connected.
Next-generation donors also want more interaction regarding how their money is helping a cause. They prefer constant updates and enjoy promoting social media issues, so they are evolving communication strategies between donors and organizations.