The largest intergenerational wealth transfer in history is just beginning. Amounting to nearly $40 trillion in wealth, it poses an opportunity to make the next generation of donors more significant than ever. That prompted the panel discussion “Engaging the next generation: mobilizing wealth for good,” convened by The Hong Kong Jockey Club Charities Trust as part of the third Philanthropy for Better Cities Forum, brought together representatives of next-gen philanthropists and philanthropy advisors.
Moderated by Kithmina Hewage, Senior Advisor of the Centre for Asian Philanthropy and Society, the session revolved around two fundamental questions: How do next-gen philanthropists differ from their predecessors, and what strategies can effectively engage and support them in their philanthropic endeavors?
Differentiating next-gen philanthropists
The conversation began with Greg Ratliff, Senior Vice President at Rockefeller Philanthropy Advisors, categorizing next-gen philanthropists into two distinctive groups: wealth inheritors and wealth creators. He emphasized that inheritors often hail from a family tradition of giving, arriving in the philanthropic space with predetermined approaches or strong family influence. In contrast, wealth creators, like Silicon Valley entrepreneurs, lack predefined philanthropic agendas. This distinction underscores the necessity of tailoring engagement strategies to suit the unique attributes of each group.
Dee Poon, President of Brands and Retailing at Tessellation Group, contributed insights from her perspective as an emerging philanthropist. She noted that next-gen givers are not restricted to monetary contributions. What sets them apart from the older generation is their focus on systemic change and a commitment to values such as innovation, sustainability, and equity.
Andine Sutarjadi, Director at 21/64, a philanthropy consulting practice serving multigenerational families, highlighted the importance of understanding the values and motivations of next-gen philanthropists. “There are five generations living now globally. That’s never happened before in the past. This idea of passing the torch in philanthropy is going to be no longer”, stated Andine, “ We say at 21/64 that there are four types of resources that can be deployed with next-gen; time, talent, treasure, and ties. Effective engagement requires a transition from transactional relationships to the establishment of sustainable, long-term connections that resonate with their values and aspirations. ”
Strategies for effective engagement
In the quest to engage next-gen philanthropists effectively, the panelists underscored the significance of emphasizing impact and storytelling. Greg Ratliff pointed out that next-gen givers want to see the tangible impact of their contributions, advocating for a shift from number-based metrics to a more holistic and systemic approach. “They want to move beyond the cheque writing and gala attendance. For a nonprofit, telling the story of your organization from an impact-first perspective and helping them understand and even experience what the beneficiaries of your program are experiencing will really reel them in because that’s what they want to know: I’m giving you money, and can I see the impact?” Greg also pointed out that next-gen givers are heavily focused on collective and collaborative giving and approaches: “If you think about Uber and AirBnB, this is a sharing generation that has a sense of communal ownership of assets as well as a shared set of values.”
Dee Poon illuminated the next generation’s penchant for systemic approaches to social issues, their desire to comprehend root causes, and their commitment to driving long-lasting change. They are deeply interested in impact investing, viewing capital as a potent tool for constructing sustainable solutions. She added, “ Speaking of technology, I’m a millennial, and as a millennial we are the internet generation. And so, the way that we want to do impact in my opinion is also ‘show it to me now. Show it to me on my phone.’ What impact means can be very accessible.”
Andine Sutarjadi offered practical advice for non-profits and professionals in philanthropy. She stressed the need to consider the motivations and values of next-gen donors, most of them global citizens, to advocate for open conversations that delve into their backgrounds and perspectives. Asking questions like “Where is home for you?” helps build a more profound understanding of donors, fostering meaningful and sustainable relationships.
The future of philanthropy: A mosaic of values and impact
The journey into next-gen philanthropy is a voyage of identity and values, as Andine put it as a philanthropy advisor and next-gen philanthropist: “I really believe that it starts with knowing who you are, what you inherit. Identity is key to strategy.” Next-gen philanthropists represent a dynamic force in the philanthropic landscape. The core lies in a passionate pursuit of impact. They are driven by values, committed to systemic change, and seek measurable impact. Effectively engaging them necessitates a multifaceted approach that includes building long-term, values-aligned relationships, prioritizing impact measurement and storytelling, and customizing strategies to align with their unique backgrounds and motivations.
Fan Li is the East Asia Regional Representative at Alliance magazine
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