A new report by the Indiana University Lilly Family School of Philanthropy has revealed a significant shift in how younger generations, particularly Generation Z and Millennials, approach philanthropy.
The study, titled “The Next Generation of Philanthropy,” and released in February 2025, provides a detailed analysis of giving patterns, motivations, and preferences of these emerging donors, comparing them with older generations.
Key Findings: Religion vs. Basic Needs
The report highlights that while religion and basic needs remain the top causes for philanthropic giving across all generations from 2003 to 2021, there’s a notable generational difference in priorities.
Younger donors, especially Generation Z and Millennials, are showing an increasing interest in supporting basic needs such as housing, food, and clothing.
In contrast, giving to education is becoming less popular among younger donors, possibly due to the burden of student loan debt.
“Next generation donors are deeply issue-driven, and prefer flexible approaches to philanthropy with fewer strings attached,” the report states.
Secular Giving: A Steady Trend
Interestingly, the study found that Generation Z is giving to secular causes at a rate similar to what Millennials gave at the same stage of life, despite an overall decline in secular giving since 2008.
However, a notable deviation from historical trends is that Generation Z donors who give to religious causes are significantly less likely to also support secular causes compared to Millennial donors.
The Impact of Economic Factors
The report emphasizes the impact of economic fluctuations on philanthropic giving. The Great Recession of 2007-2009 has had a lasting effect, with giving across all generations declining since 2008 and yet to return to pre-recession levels.
How Next Generation Donors Engage
The study also delves into how younger donors engage with charities. It reveals that while the top causes for giving are similar across generations, younger donors are more likely to utilize technology and social media for their philanthropic activities.
They seek transparency, accountability, and trustworthiness from the organizations they support and often prefer to be actively involved in the causes they care about.
Recommendations for Charitable Organizations
The report provides valuable insights for charitable organizations looking to engage with the next generation of donors. It emphasizes the importance of adopting technology-driven fundraising strategies, leveraging social media, and fostering genuine relationships with younger donors.
“Nonprofit organizations and philanthropic advisors seeking to engage younger donors will need to adopt a long-game mindset toward building meaningful relationships with them,” the report advises.
The Future of Philanthropy
The “Next Generation of Philanthropy” report paints a picture of a changing philanthropic landscape, shaped by the values, preferences, and behaviors of Generation Z and Millennial donors.
As these generations continue to grow in influence, their approach to giving will undoubtedly play a crucial role in shaping the future of philanthropy.
About the Study
The analysis in “The Next Generation of Philanthropy” report is derived from the Indiana University Lilly Family School of Philanthropy’s Philanthropy Panel Study (PPS), a module of the University of Michigan’s Panel Study of Income Dynamics (PSID).
The PSID is the longest-running longitudinal household survey in the world and has been tracking households since 2000.
About Indiana University Lilly Family School of Philanthropy
The Indiana University Lilly Family School of Philanthropy is dedicated to improving philanthropy to improve the world by training and empowering students and professionals to be innovators and leaders who create positive and lasting change.
