Wealthy baby boomers have spent decades building their fortunes—and the foundations, donor-advised funds, and giving traditions that come with them. But as the $124 trillion Great Wealth Transfer gets underway, a growing share of the older generation isn’t so sure their kids will carry on tradition the way they hope.
Fewer than half of wealthy Americans (47%) believe the next generation is prepared to take on family philanthropic causes, down from 55% in 2024, according to research from Bank of America released last week. The share of parents who believe their children share their commitment to giving back fell even more sharply to 65% from 76%. The bank surveyed more than 1,430 wealthy individuals in the U.S. aged 21 or older with at least $3 million in investable assets, excluding primary residence.
The confidence gap in philanthropy mirrors a broader anxiety wealth advisors have noticed about whether heirs are ready for any of it.
“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 U.S. Bank, told Fortune of parents’ fears that wealth could dampen their children’s drive. Trent Von Ahsen of Cedar Point Capital Partners also told Fortune his clients are leaning on mentorship and phased wealth transfers rather than lump-sum inheritances.
But the irony is younger donors are, by several of the study’s measures, more engaged donors than older generations. Gen Z and millennial donors support an average of 12 charitable causes, compared with eight among wealth donors overall. They’re also roughly twice as likely to use a donor-advised fund, and 87% say honoring their family’s philanthropic tradition is important. Meanwhile, 86% say it’s equally important to establish their own charitable identity.
“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.”
Gen Z and millennials give differently
Generations also diverge in how they give. Among baby boomer and Silent Generation donors, 92% give through cash contributions, while just 56% of Gen Z and millennial donors do. Instead, younger donors are more likely to give through charitable trusts, family foundations, fundraising, and mentorship.
Some of that comes down to inheritance. Many young donors come from families that already set up foundations, charitable trusts, or donor-advised funds (DAFs), Dianne Chipps Bailey, managing director of BofA’s Philanthropic Solutions division, told the Chronicle of Philanthropy. Younger donors also gravitate to DAFs because they’re digital-first, she said.
The way they give also reflects how they want to be involved. Younger donors are nearly three times as likely as older ones to fundraise for the causes they support (30% versus 11%) and six times as likely to mentor (26% versus 4%).
But that hands-on approach is what nonprofits are struggling to adapt to. Community organizations spent decades cultivating wealthy baby boomer donors, and so that connection fades with each generation removed from the original donors.
“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 told Fortune. Younger donors, he said, are willing to trust organizations, but want to see exactly where their money goes first.
Bloomerang’s data also showed Gen Z and millennials are very active donors. In fact, their 2026 Giving Signals Report, conducted with The Harris Poll, pegged millennials as the most active donor generation right now.
“Donors are ready to trust nonprofits, but they want to see the receipts more,” Isom said.