It should come as no surprise that millennials are approaching charitable giving differently than their parents (and grandparents). And as they grow in influence, they’ll likely transform the face of philanthropy. At least that’s the opinion of Fidelity Charitable, a public charity that oversees one of the nation’s largest donor-advised fund programs.
Among other things in the firm’s study, “The Future of Philanthropy,” released last month, the organization explored the different generational approaches toward donations. Specifically, the survey of more than 3,200 people who give to charity found that baby boomers are more likely to focus on issues in the U.S. while millennials seek out causes both at home and abroad.
And, of course, millennials have tailored their charitable giving to trends that define their generation—adopting technology, for example, and taking a social approach to donations. According to the survey, millennials are twice as likely as boomers (49% versus 23%) to use technology in philanthropy, which makes it easier for them to research nonprofits and offers them flexible online payment options, among other things.
Meanwhile, younger donors have caught on to the concept of “collaborative giving,” a trend that hasn’t caught on in the broader donor universe. Collaborative giving includes the concept of “giving circles,” where people pool resources to benefit a common charitable cause.
Furthermore, millennials are much more inclined than boomers (32% versus 14%) to employ alternative forms of helping a cause they believe in by purchasing items from a company with a social mission or doing impact investing.
Millennials also say their giving is more spontaneous, while a greater number of boomers say their giving is more planned.
One of the takeaways from all of this, says Fidelity Charitable, is that expanded access to—and awareness of—financial planning strategies can help people give more to charity.