What's Happening?
A recent report from the fundraising platform Tiltify highlights a significant trend in charitable giving among Gen Z and millennials. Despite holding only 6 to 7 percent of U.S. household wealth, Gen Z has
increased their charitable contributions by 67 percent since the pandemic, matching the annual giving levels of baby boomers, which range between $50 and $249. This trend is driven by their deep concern for causes and the influence of trusted online creators. The report also notes that 85 percent of Gen Z and 77 percent of millennials are likely to donate when prompted by their favorite online personalities, compared to lower percentages in older generations.
Why It's Important?
This shift in charitable giving patterns among younger generations is significant as it reflects a change in how philanthropy is approached in the digital age. Gen Z and millennials are leveraging technology to engage with causes they care about, often bypassing traditional donation methods. This could lead to a transformation in how charities and non-profits engage with donors, potentially increasing the role of digital platforms in fundraising. Additionally, this trend highlights a generational shift towards values-driven financial decisions, which could influence broader economic and social policies.
What's Next?
As Gen Z continues to enter the workforce and gain financial independence, their approach to charitable giving could influence corporate social responsibility strategies and philanthropic efforts. Organizations may need to adapt by increasing transparency and leveraging digital platforms to engage with these younger donors. Furthermore, this trend could prompt a reevaluation of how wealth and philanthropy are perceived, potentially leading to more inclusive and diverse approaches to addressing social issues.
