Wealthy baby boomers are losing faith in their heirs’ commitment to philanthropy as the $124 trillion Great Wealth Transfer gets under way, new research suggests.
Fewer than half of wealthy Americans — 47 per cent — believe the next generation is prepared to take on their family’s charitable causes, down from 55 per cent in 2024, according to research released by Bank of America.
The proportion of parents who believe their children share their commitment to giving back has also fallen sharply, from 76 per cent to 65 per cent. The findings are based on a survey of more than 1,430 wealthy Americans aged 21 and over, each with at least $3 million (£2.2 million) in investable assets, excluding their primary residence.
The figures reflect wider concerns among wealth advisers about whether heirs are ready to take responsibility for family fortunes — and whether inherited wealth could weaken their motivation.
“This is a very real concern I’m hearing from ultra-affluent families right now,” Tom Thiegs, managing director of leadership and legacy at Ascent Private Capital Management with US Bank, said of parents’ fears that wealth could dampen their children’s drive.
Trent Von Ahsen of Cedar Point Capital Partners said his clients were increasingly turning to mentorship and phased wealth transfers rather than handing over inheritances in a single lump sum.
Younger donors support more causes
Despite older donors’ concerns, Gen Z and millennial donors appear highly engaged with charitable giving in several areas measured by the study. They support an average of 12 causes, compared with eight among wealthy donors overall, and are about twice as likely to use a donor-advised fund.
Some 87 per cent of younger donors said it was important to honour their family’s philanthropic tradition, while 86 per cent said it was equally important to establish a charitable identity of their own.
“Younger donors want to honor the charitable traditions that shaped them, but they also want to define their own impact,” Jennifer Chandler, head of philanthropic solutions at Bank of America Private Bank, wrote in the study.
“The opportunity for families is to engage the next generation early, creating a shared vision for giving while allowing room for new priorities and approaches.”
The generations also differ in how they donate. Cash contributions are used by 92 per cent of baby boomer and Silent Generation donors, compared with 56 per cent of Gen Z and millennial donors.
Younger donors are more likely to give through charitable trusts, family foundations, fundraising and mentorship. They are nearly three times as likely to fundraise for causes they support as older donors, at 30 per cent compared with 11 per cent, and six times as likely to mentor, at 26 per cent compared with 4 per cent.
Dianne Chipps Bailey, managing director of Bank of America’s Philanthropic Solutions division, said some younger donors came from families that had already established foundations, charitable trusts or donor-advised funds. She said donor-advised funds also appealed to them because they were digital-first.
The shift towards more hands-on giving is creating challenges for community organisations that have spent decades building relationships with wealthy baby boomer donors. As those connections pass to later generations, charities are having to adapt to donors who want closer involvement and greater visibility over how their money is used.
“A lot of nonprofits feel a bit paralyzed in how to tackle that problem,” Steve Isom, chief operating and financial officer of donor-software firm Bloomerang, previously said.
“Donors are ready to trust nonprofits, but they want to see the receipts more,” he added.
Bloomerang’s 2026 Giving Signals Report, conducted with The Harris Poll, found that millennials were currently the most active donor generation.
