New approaches to philanthropy are needed to meet challenges such as recovering from a pandemic or human-caused global warming. The authors of this article consider in what ways changes can take place.
Philanthropy continues to evolve – this publication recently
mused about the challenges
for advisors when charity can often take on a distinctly
controversial hue, for example. In what ways is philanthropy
changing, and why? The following article, from Zaki Cooper and
Nick Loughran, co-founders of UK-based consultancy Integra
Group, examines the territory. Loughran worked for eight
years at Kensington Palace for The Duke and Duchess of Cambridge
and Prince Harry. He has advised the Bill & Melinda Gates
Foundation. Cooper has worked at Buckingham Palace on the Diamond
Jubilee and for Sir Lloyd Dorfman.
The editorial team is pleased to share such insights; the
usual disclaimers about the views of outside contributors
applies. Jump into the debate! Email tom.burroughes@wealthbriefing.com
Across different fields, young people are assuming leadership
positions. Whether in politics, business or education, there are
many people in their 30s and 40s, even some in their 20s, who are
making their mark. As an illustration, Rishi Sunak, who took
office aged 42, is the UK”s youngest prime minister in 200 years
since William Pitt (who was 24). The shift towards the younger
generation is also reflected in philanthropy and impact.
Over the next 25 years, $30 trillion-plus will be passed on to
the next generation in what has been described as the greatest
wealth transfer in history. Some of this enormous pool of wealth
will be used for philanthropy, charity, and social impact. Whilst
the desire to give back spans ages, this new cohort is
transforming how we do philanthropy. The following are 10 key
characteristics of this rising wave of givers, the NextGen Ten.
A different mindset
Due to recent technological, social, and cultural
transformations, NextGen givers have grown up in a world that is
more interconnected than ever before. The result is a generation
with a global mindset coupled with greater awareness of cultural
diversity and a desire to improve society. NextGen givers are
keen to take on philanthropy as part of their identity. Indeed, a
2021 study by Fidelity of individuals who had given over $1,000
to charity in the previous year, found that 74 per cent of
Millennials surveyed described themselves as philanthropists
(compared with just 35 per cent of Baby Boomers).
From philanthropy to impact
Millennials are impact-driven and willing to entertain new tools
that may help them achieve their charitable goals. They are some
of the most enthusiastic supporters of social enterprise and
impact investing and have contributed significantly to the rise
of ESG. They may see their giving as a kind of risk capital,
especially when it takes the form of impact investments. Notably,
the Fidelity report also found that 43 per cent of Millennials
surveyed engaged in impact investing (compared with just 12 per
cent of Boomers).
Campaigns and advocates
Social justice is at the heart of NextGen giving, with many in
this group donating not just money but their time and voice.
Millennials often express their philanthropy through campaigns,
such as the #MeToo movement, BLM, or Extinction Rebellion, rather
than just supporting causes like gender and racial equality and
the environment more generally. For example, the younger
generation of Royals has drawn praise for raising funds and
awareness for mental health and, more recently, the importance of
early childhood development through the Shaping Us campaign.
Collaboration and partnerships
The NextGen recognises and celebrates the importance of
collaboration and partnerships. They are more willing to join
forces with others to tackle big social issues, including global
health, climate change, and education. Millennials often have a
greater level of humility in recognising others’ contributions
than they are given credit for. Consider, for example, how their
generation has embraced and popularised crowdfunding to support
particular causes.
Wider pool of causes
NextGen givers recognise the value of supporting causes in
several areas of society – from gender equality and racial
justice to education and the environment. They have an awareness
of intersectionality and are open to the possibility that
supporting one cause might help another. For example, Millennials
may support climate change efforts, recognising that it will also
help to mitigate the suffering and numbers of environmental
refugees.
Eco-minded
Though they are not the generation responsible for climate
change, many of the NextGen recognise that time is running out to
prevent its most devastating effects and are leading the
transition to a more sustainable world. This year’s Sunday
Times Giving List prominently featured donations to causes
supporting the environment, with high-profile celebrities like
Cara Delevingne at the forefront of the movement.
Diversity amongst givers and recipients
Philanthropy has traditionally been dominated by a specific group
of people, namely, older, white men, but now, greater
accessibility is allowing other groups to grow their
philanthropic work in their activities and roles. The outdated,
patriarchal model is being challenged, along with concepts like
primogeniture. Approximately 10 per cent of UNHW individuals
globally are women, and female philanthropists contribute about
14 per cent of donations to social justice by UNHW individuals.
Figures like MacKenzie Scott are acting as role models to younger
women in this space. In addition, women, LGBTQ+ people, and
ethnic minorities are bringing their lived experiences to
philanthropy and ensuring that the causes they support help
people from all backgrounds.
Digital natives (tech as part of the means and the
end)
Technology is not separate from other parts of Millennials’
lives; it is intrinsic to them. Accordingly, NextGen givers are
harnessing the power of technology in their philanthropic
pursuits. On the one hand, they use tech to support causes.
Fidelity’s report showed that 39 per cent of Millennial donors
have used online giving platforms, and 24 per cent have made a
donation after learning about a cause through social media. On
the other hand, they also see technology as an end, supporting
charities and organisations embracing digital solutions to
complex problems.
Family convenors
According to Rockefeller Philanthropy Advisors: “Next generation
philanthropists are people who see themselves as descendants
rather than ancestors, who want to use their wealth to be a
service to others.” This group can facilitate dialogue between
different generations to galvanise support for a particular
cause. This kind of open conversation is beneficial for all
involved; family members can learn from one another and share
their experiences.
Transparency
In recent years, there have been increasing calls for
transparency in philanthropy. Public figures are being held
accountable for where and how they spend their money, including
in charitable settings. NextGen givers are conscious of this fact
and want to ensure that they are using their resources as
effectively as possible. They recognise the importance of results
over rhetoric and are willing to take unconventional, creative
approaches to achieve them.
Like all generations, Millennials and Gen Z givers are called to
action by the challenges of their day. Unlike other generations,
however, many of today’s challenges – from pandemic recovery to
climate change – are unprecedented. These extraordinary issues
require alternative, creative approaches which challenge the
limitations of traditional philanthropy. In these ten ways,
NextGen givers are shaking up the status quo in philanthropy.
About the authors
With 40 years of combined communications experience, including
over a decade between them working for the Royal Family, Zaki and
Nick build trusted relationships with entrepreneurs, leaders,
family offices, philanthropists, and businesses, who have a
social purpose. They co-founded Integra in 2021. It is a
London-based strategic communications, reputation and social
impact consultancy.
Nick Loughran
Zaki Cooper
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