Charitable giving is a priority for many affluent Americans, but how they give varies strongly by age, with younger donors more likely to use vehicles such as charitable trusts, family foundations and donor advised funds.
That’s according to a new study from Bank of America Private Bank that paints a complex picture of altruism broken down by age and gender and examines differences in motivations, priorities and strategies. Among its findings:
- Financial contribution is the most common type of philanthropic involvement, but it is especially practiced by older donors (ages 44 and above). Younger donors (ages 21 to 43) tend to favor direct action like volunteering, fundraising, mentorship and sitting on boards.
- Asked about their reasons for giving, making a lasting impact was cited by 69% of older respondents vs. 63% of younger. But older donors are more than twice as likely to be driven by a sense of obligation (56% older vs. 25% younger).
- Younger donors, often inheritors of wealth, are much more likely to use giving vehicles, including charitable trusts (36% younger vs. 7% older), family foundations (25% vs. 3%) and donor advised funds (22% vs. 8%).
- Younger donors are more likely to weigh their philanthropic efforts’ success through public recognition (27% younger vs. 8% older). Additionally, 42% of younger donors are likely to associate their names with philanthropic efforts, while 69% of older donors give anonymously.
- Men are more likely to become involved in philanthropy in response to their spouse/partner’s views (16% men vs. 8% women).
- Women are also more influential in introducing their children to philanthropy. Asked who is more likely to teach their children about giving, 46% of women say they do, while 35% of men say the same.
- There is a generational divide regarding the readiness of the younger generation to assume philanthropic leadership: 88% of younger donors say their generation is prepared, and 86% say the next generation will surpass the effectiveness of previous generations. However, only 50% of the older generation think the next generation is ready.
