Glasspockets Find: How Will Millennial Philanthropists Influence Openness and Innovation in Giving?
Giving is a family legacy for some philanthropists. How will millennials – known for creating new norms when it comes to openness and innovation in everyday life – approach and redefine their roles in family foundations and shape the next generation’s giving mindset?
An insightful report published earlier this year, Passing the Torch: Next Generation Philanthropists, commissioned by BNP Paribas Wealth Management examines the motivations, actions and mindsets of millennial philanthropists involved in their family foundations as they seek to balance the expectations of multi-generational family giving with their desire for innovation in philanthropy.
Such innovative practices include new investment strategies, such as impact investing and ways to measure social impact, and international collaboration. The report findings were based on interviews with affluent interviews and relevant experts.
Millennial philanthropists desire to make a positive impact on society. “Millennials especially are pushing the boundaries of traditional philanthropy with a stronger collaborative spirit and a greater use of impact investing or social entrepreneurship and co-funding opportunities,” Sofia Merlo, co-CEO at BNP Paribas Wealth Management, said in a statement.
In 2015, the nation’s 75.4 million millennials surpassed the number of 74.9 million baby boomers. This generation, which grew up with technology at their fingertips, is known for bucking the status quo, supporting social justice work, and its preference to connect, network and share through social media.
Millennials are opening up their family foundations’ philanthropic work through social media, especially Facebook and Twitter. Survey respondents suggested Facebook is more commonly used because it does not require as much frequent messaging as Twitter.
The report identified unique characteristics of millennial philanthropists:
- Millennials favor supporting entrepreneurship and are willing to support for-profit organizations as a “sustainable option to achieve their philanthropic ambitions.” Emerging sectors of interest to millennials for social entrepreneurship include financial technologies, educational technologies, renewable energy, and food and agriculture.
- Millennials are more global in their causes and giving than baby boomers. Millennials prefer to “replicate successes across many places whereas the older (generation) is focused on a single region.”
- Millennials want to give now to advance change rather than waiting to give later.
- Millennials use social media differently than baby boomers. Through social media, they find grantees, donors, partners or opportunities to learn.
- Millennials favor collaboration through local and global networks, whether it’s a search for new ideas and best practices or partners for co-investments and co-funding.
The report also found millennials involved in family foundations are not tied to legacy. Although they approach philanthropy with consideration for the philanthropic traditions of their families and generations before, millennials are “eager to forge a new path, fully using all the tools and resources at their disposal.”
Millennials are willing to strike out on their own philanthropically. When they find that their philanthropic goals do not align with the family foundations, millennials “set up their own foundations or funds to achieve their philanthropic goals.” And for those who champion a more open philanthropic sector, it’s reassuring that the report findings show millennial philanthropists are living up to their reputation and using technology to open up their work and scale their networks.