The financial services sector loves to talk about the different views and habits of adult age groups, and in this study, an organization working in the foundations sector looks at attitudes to giving, data about charitable donations, and more.

A survey of more than 1,000 US adults finds that Millennials were more likely to have donated to charity in the past year than their Gen Z counterparts, but both groups embrace non-financial charitable activity that goes beyond giving money.

The study, conducted by Foundation Source, a provider of cloud-based solutions for private foundations and planned giving, examined attitudes of adults aged between 18 and 43.

Of the Millennial respondents, who had an average income of $98,000, 87 per cent made a financial donation in the past year. Of the Gen Z respondents, who had an average income of $59,000, 71 per cent did so. 

Some 80 per cent of both cohorts donated items, and 54 per cent of them volunteered, and 25 per cent shared knowledge and expertise.

The language of philanthropy is changing, the survey found. Overall, the next generation (NextGen) envision growing their charitable giving footprints with 80 per cent of respondents aspiring to be described as a “giver,” 63 per cent an “advocate,” and 55 per cent a “changemaker.”

They shy away from the label of “philanthropist” – only 27 per cent said the term resonates with them. 

"There is much discussion around preparing advisors and the broader wealth management industry for the great wealth transfer, but in order to be truly effective, we need to gain a more thoughtful understanding of how NextGen thinks about giving back and creating impact," Joseph Mrak (pictured), CEO of Foundation Source, said. (This news service interviewed Mrak about the business of "philtech" in May.)

While both Gen Z and Millennials demonstrate active engagement in charitable activities, many are not aware of the ways in which they can optimize their giving through tax-efficient vehicles. Three in 10 have never heard of donor-advised funds, and more than one-third are not familiar with impact investing (35 per cent), trust-based philanthropy (36 per cent), or giving circles (35 per cent).

However, both Gen Z and Millennials are interested in learning more about the range of giving tools, with giving circles at the top (43 per cent). Gen Z in particular would like to learn more about donor advised funds (41 per cent), trust-based philanthropy (34 per cent), and family foundations (33 per cent).