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 percentage 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. age 21 or older with at least $3 million in investable assets, excluding primary residence.

The confidence gap in philanthropy mirrors a broader anxiety that 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.

Read the full article about Gen Z and millennial giving by Sydney Lake at Fortune.