Advising the next generation on impact through philanthropy

By Mark Greer, Managing Director for Philanthropy Services | Charities Aid Foundation W: www.cafonline.org

Over the next two decades, an estimated £5.5trn wealth is expected to pass from baby-boomers to millennials as part of “The Great Wealth Transfer”. As they come into money in their twenties and thirties, those from this ‘next generation’, are driving major change in the philanthropy sector.

to previous generations, professional advisers need to respond to changing requirements and expectations from their clients.

Next generation donors are embracing “giving while living” and have a longer-term outlook than their predecessors. They tend to focus on results and achieving impact, striving to see the how their philanthropy effects change in their lifetime. In some cases, they can be more hands on, using their time, talent and in some cases influence, to champion causes, rather than giving purely in monetary terms.

As wealth increasingly passes to demographic groups with different perspectives, priorities and motivations

The impact generation are committed and aspire to do more but can struggle to engage due to overload or competing priorities on their finances. They could therefore benefit from trusted, expert advice to make the most of their giving. However, while 80% of advisers make it a practice to ask their clients about their interest in charitable giving, only 45% of HNWIs (high-net-worth individuals) are fully satisfied with those conversations. Our guide to Advising the Impact Generation provides private client advisers with the resources needed to discuss an informed, impact-led approach to charitable giving.