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FEATURE: Many Generation Y Donors Are "Taking The Reins" In Philanthropy
A rising number of young individuals are “taking the reins” on their families’ philanthropic efforts, says Rebecca Eastmond, head of philanthropic services for EMEA at JP Morgan Private Bank.
A rising number of young individuals are “taking the reins” on their families’ philanthropic efforts, says Rebecca Eastmond, head of philanthropic services for EMEA at JP Morgan Private Bank.
The trend is associated with what has been described by a recent study as the “new age of philanthropy” and potentially points to an opportunity for wealth advisors and firms.
Eastmond recently spoke to this publication about the continued level of philanthropic dedication among wealthy individuals, discussing all the while her increased involvement with people as young as twenty over the past year or so. She said her firm is seeing a number of next generation individuals from wealthy families looking for ways to make a difference in the world.
Her observations resonate with findings from a recent global paper by Charities Aid Foundation called The Future Stars Of Philanthropy: How the next generation can shape a bright future. It found that young people “thrive on engagement,” value their networks and are more willing to make noise about what they’re doing philanthropically.
The study, which involved 5,975 wealthy individuals, also suggested that young donors take a more strategic and hands-on approach, meaning the industry can expect greater innovation, experimentation and long-term relationships with causes and charities. Interestingly, it also discovered that wealthy individuals from generation Y are giving, on average, some $3,000 more than those over the age of 45.
“Individuals in the younger generation are already putting their money exactly where their mouths are,” it says.
In conjunction with this is an estimated $41 trillion currently being handed over from generation to generation, representing the “largest post-industrialized intergenerational transfer of wealth ever seen,” Claire Costello, philanthropic practice executive for US Trust, told this publication late last year.
