Investments & Wealth Institute: The Philanthropy-Minded Avisor: A Bridge to the Next Generation

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Investments & Wealth Institute: The Philanthropy-Minded Advisor: A Bridge to the Next Generation

The post The Philanthropy-Minded Advisor: A Bridge to the Next Generation appeared first on Foundation Source.

FA: The Great Values Transfer

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#1: How Intentional Are You with Your Charitable Planning?
There are plenty of things we all can do to be happier—and most of them require us to be intentional with our time, actions and thoughts. Numerous studies show that it’s not how much we have, but rather how we use what we have that has the greatest effect on our happiness, which the Berkeley study reminds us. Our Client Meeting Checklist has some helpful prompts to help you dive deeper into this idea and better understand their motivations for giving.

#2: Does Giving Generate Any Memorable Emotions?
Giving to others generates an abundance of benefits, not only for givers and receivers but also for those who witness acts of generosity. The UC Berkeley research also points to a virtuous cycle between giving and happiness: Giving makes people happier, and happier people give more.

Givers also regularly report increased feelings of satisfaction and competence, along with a greater sense of purpose. In 120 of 136 countries, says UC Berkeley, people who donated to charity in the prior month reported greater satisfaction with life. Furthermore, a Foundation Source study of more than 1,700 Americans who engage in charitable activities suggests that giving helps people feel more connected with their communities, too.

The same is true for those who volunteer. The Foundation Source research found that many people engage in charitable activities by volunteering and aspire to continue doing so in the future. Donating time and expertise along with physical help, such as pitching in to build houses or deliver meals, can switch our focus from our own troubles to the needs of those around us, fostering social connections and benefiting everyone involved.

#3: Have You Experienced Any Other Benefits Of Giving?
Medical experts are starting to focus on the tangential benefits of giving, too. In a UnitedHealthcare poll of people who had volunteered in the previous 12 months, the large majority felt healthier (cited by 76% of the respondents), had improved moods (cited by 94%) and reduced stress (mentioned by 78%). Similarly, a blog by the Columbia University Irving Medical Center recently said that generosity has the potential to affect health and well-being by boosting a person’s mood, self-esteem and the immune system, in turn reducing stress, anxiety and blood pressure. The associated chemicals that are produced by the body in response to giving can also help reduce physical discomfort and aid sleep.

Your role as an advisor can extend far beyond discussions about money and wealth planning and be the catalyst to help them make their philanthropy as impactful as possible. When they think of you, they won’t just think of you as an advisor, but as someone who has helped guide them on their path to overall wellness and happiness. And that’s pretty powerful.

Want To See The Rest?
Check out the full article.

Learn More About How We Support Advisors
Schedule a call or reach us at 800-839-0054 to learn how we can best support your clients who are passionate about philanthropy. Together, let’s #begiving.

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VettaFi: 4 Ways to Help the Next Gen Turn Aspiration to Impact

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FA: The Link Between Giving And Wellness

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Of the Millennial respondents, which had an average income of $98K, 87% made a financial donation in the past year. Of the Gen Z respondents, which had an average income of $59K, 71% made a financial donation in the past year. However, both groups also engage in a range of non-financial charitable activities as testament to their commitment to social change, including donating items (80%), volunteering time (54%), helping with fundraising (30%), and sharing expertise/knowledge (25%).

Overall, the next generation (NextGen) envision growing their charitable giving footprints with 80% of respondents aspiring to be described as a ‘giver’, 63% an ‘advocate’, and 55% a ‘changemaker’. They shy away from the label of ‘philanthropist’ — only 27% said the term resonates with them. The younger generation gravitates more toward catalytic terminology which they associate with contributing to larger systemic change rather than a more passive approach of individual giving.

“There is much discussion around preparing advisors and the broader wealth management industry for the great wealth transfer, but in order to be truly effective, we need to gain a more thoughtful understanding of how NextGen thinks about giving back and creating impact,” said Joseph Mrak, CEO of Foundation Source. “This research offers insight into what the future of philanthropy may look like, and the aspirations Gen Z and Millennials have for driving change in new ways.”

Awareness of Giving Vehicles

While both Gen Z and Millennials demonstrate active engagement in charitable activities, many are not aware of the ways in which they can optimize their giving through tax efficient vehicles. Three in ten have never heard of donor-advised funds, and more than one-third are not familiar with impact investing (35%), trust-based philanthropy (36%), or giving circles (35%). However, both Gen Z and Millennials are interested in learning more about the range of giving tools, with giving circles at the top (43%). Gen Z in particular would like to learn more about donor advised funds (41%), trust-based philanthropy (34%), and family foundations (33%).

“Gen Z and Millennial giving has taken shape in informal and hands-on charitable activities like volunteering, donating goods, and making individual contributions directly to causes they are passionate about,” said Gillian Howell, head of client advisory solutions at Foundation Source. “However, they are still in the early stages of their philanthropic journeys and are open to learning about different methods that could help maximize their impact. This is a key opportunity for advisors and nonprofits to educate the next generation on how different approaches can help them do more with their charitable dollars and shape their giving for years to come.”

Among the key trends from the report:

• Generational changemakers: Gen Z and Millennials aspire to be seen as givers, volunteers, advocates, humanitarians and changemakers.
• Primary drivers: Whether Gen Z or Millennial, their inspiration to get involved in charitable activity is primarily driven by family, having a passion for a specific cause or issue and wanting to help their local community.
• Gender differences: On the whole, women are more likely than men to want to make an impactful change to a cause and demonstrate their family’s values; men, on the other hand, are more likely than women to want to create or continue a legacy.
• Starting young: Millennials who engage in charitable activities started at an average age of 18; Gen Z started even younger — at age 14.
• Money matters: Financial contributions were influenced by each participants’ financial resources. Monetary donations are more common among high earners, college graduates and employed individuals. And high earners donate greater amounts.

“Gen Z and Millennials have faced a unique geopolitical, social, and economic landscape, including unprecedented crises and world events as they come of age and enter their peak earning years,” said Hannah Shaw Grove, chief marketing officer at Foundation Source. “These events have shaped a generation focused on grassroots social change, and we expect to see them increase their financial contributions to such causes as they accumulate more wealth. It’s essential that we provide NextGen with strong support and guidance to help them navigate their evolving role in the charitable community.”

The full report can be viewed here.

Methodology

Shaping Tomorrow: How Gen Z and Millennials View Charitable Giving is a deep dive into the charitable activities, inspirations and goals of NextGen donors. The data was compiled in conjunction with Helical Research through an online survey conducted between February 27 and March 8, 2024. The sample was provided by national US opt-in consumer panels and included 1,000 respondents between 18 and 43 years old at the time of the survey.

About Foundation Source (foundationsource.com)

Foundation Source is the leading provider of enterprise-caliber and technology-led charitable giving solutions. We offer a range of purpose-built, cloud-based platforms that facilitate all stages of giving and a configurable suite of administrative, compliance, tax, and philanthropic advisory services for donors, nonprofits, professional advisors, and financial institutions.

For more than two decades, Foundation Source has empowered people and companies to create a better world through philanthropy. In February 2024, we acquired planned giving software and services firm PG Calc. Today we support more than 4,000 charitable organizations, administer more than $22 billion in foundation assets, and facilitate more than 120,000 grants and planned gifts annually.

MEDIA CONTACT
Carly Taylor
foundationsource@neibartgroup.com
973-618-6993

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FA: The Whole Philanthropic Picture

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FA: What’s Ahead For Family Philanthropy In 2024?

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FA: Unlocking A $30 Trillion Opportunity

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