Advising the next generation on impact through philanthropy

By Mark Greer, Managing Director for Philanthropy Services, Charities Aid Foundation

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

Next generation donors are embracing“giving while living”and have a longer-term outlookthan their predecessors. They tend to focus on results andachievingimpact, striving to see the how their philanthropy effects changein 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 to previous generations, professional advisers need to respond to changing requirements and expectations from their clients.

The impact generation are committed and aspire to do more but can struggle to engage due to overload o 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.

Research shows that HNWIs would be motivated to donate even more if they had a better understanding of how their contributions effected social change. To connect with them, it is worth noting that they want to ensure that the way they give takes environmental interests, social equity, and diversity into consideration.Addressing clients’ social and environmental concerns can signal your firm’s progressive outlook and has the potential to draw in new clients.

Younger donors are far more likely to be involved in impact investing or consider waysto achieve both social or environmental and financial returns. They may put together a portfolio of philanthropic investments –just as they would a portfolio of for-profit investments –balancingrisks with potential social returns. We also know of several family offices where younger representatives control the charitable funds to invest in innovative ways, which helps them to learn about what it means to be responsible for significant amounts of wealth.

Social investment in an increasingly popular way to give, which can also have an environmental impact. Our social investment arm, Venture some, blends traditional charity with supporting social enterprises through a combination of grants and loans with wrap-around support.

You can find out more about the different forms of giving, as well as find tips on how to design an effective giving strategy via our dedicated Giving Toolkit.

The next generation are expected to be the most significant donors in human history –and it is how they approach their giving that distinguishes them. Understanding the motivations, values and attitudes of the next generation can contribute to better client relationships and encourage more effective and impactful charitable giving.


Take your philanthropy conversations further

How do you engage with your clients’ values and goals for charitable giving?

Do you truly understand how they want to make a difference? At the Charities Aid Foundation, we understand philanthropy. We have put together some key resources to help you talk to your clients about their giving.
Donor advised funds | Guide for professional advisers | CAF (
Six ways your clients can use their wealth for good | CAF (
Five misconceptions about good philanthropy | CAF (
Five key steps to developing a giving strategy | CAF (

The Giving Toolkit for Professional Advisers

Get the tools to take your philanthropy conversations from transactional to transformational.

Take your clients through our dedicated Giving Toolkit to make sure they take an informed, impact-led approach to charitable giving.

Download our Giving Toolkit for advisers | Philanthropy services | CAF (