A massive shift in charitable giving is underway that could have profound implications for communities everywhere. For decades, charities have relied upon the generosity of the Silent Generation (born 1928-1945) and Baby Boomers (born 1946-1964) to fund their operations and help them realize their missions. The generosity of both generations is best characterized as using traditional giving channels and a deep loyalty to the institutions themselves. Over the last 25 years, these generations have given generously to arts groups, educational institutions and civic-improvement organizations that have become the pillars of countless communities across the United States.
Since Door County’s population is one of the oldest in Wisconsin, and far older than the national average, it has also been one of the prime beneficiaries of this incredible generational largesse. Most of us can easily name many of the philanthropic giants whose charitable giving has made Door County’s renaissance possible.
However, this time is coming to an end. All of the Baby Boomers are now in their 60s or 70s and the youngest members of the Silent Generation are turning 80. It won’t be long before charitable giving will be driven by a new generation of philanthropists.
The Lily Family School of Philanthropy at Indiana University released a new study, “The Next Generation of Philanthropy,” which provides insight into how Millennials (born 1981-1996) and Generation Z (born 1997-2010) view charitable giving. These two younger generations have a radically different approach from their parents and grandparents.
It was common for Baby Boomers and the Silent Generation to be faithful benefactors of their favorite charities for decades. If an organization was able to demonstrate its effectiveness and gain the trust of this generation of donors, the institution would earn a level of loyalty and commitment which could last a lifetime. These were generations that grew up prior to the computer age, long before all the world’s information was readily available at their fingertips. Consequently, the philanthropists of this generation looked for organizations with competent and proven leaders, then placed their trust in the institutions they led.
Conversely, the younger generations tend to take a more utilitarian view of charitable giving. These are donors who have grown up in the information age and are most likely to be actively engaged with social media. Their approach to giving is driven by a strong commitment to issues rather than institutions. For Millennials and Generation Z, their giving moves fluidly from one organization to the next, responding to national headlines, global crises, social justice issues and whatever topic is central to the societal narrative.
The data does not suggest that Millennials and Generation Z are any less committed to making the world a better place. Instead, these younger generations view non-profit organizations less as community institutions that have earned their continuing support, and more as tools in a toolbox, only to be pulled out only when it’s needed to accomplish a specific task.
Neither approach is inherently superior to the other. Traditional philanthropy is enormously rewarding for the donor because of the relationship it builds with an organization’s leadership and it allows the institution itself to spend far less energy on fundraising and more time fulfilling its charitable mission. Conversely, the utilitarian approach of the younger generation makes it easy to shift money between whichever organization, or societal cause, is most central to the world at any given moment.
Ironically, because of the smaller size of Generation X (born 1965-1980), it is often overlooked in discussions of philanthropy. Yet this generation is the bridge between these two approaches to charitable giving. Generation X grew up in a world where trust in institutions was beginning to wane, but they still cling to many of the philanthropic habits of their predecessors. This is a generation with one foot in the relationship traditions of the past and the other in the social media society of the present. Generation X values transparency and accountability but also prioritizes stability and reliability in their philanthropic choices.
Regardless, the one constant through all of this discussion of generations is the inevitability of time. Whether we like it or not, philanthropy is turning the page and we’re beginning a new chapter, one in which the old rules no longer apply. The days of expecting loyalty based on personal relationships and reputation alone are ending. The younger generation are still giving, but only on their own terms. The charities that recognize and embrace this shift will continue to thrive in the decades ahead, while others will be left behind.
This column originally appeared in the Peninsula Pulse on February 13, 2025.
