Generation Z has been raised on a cocktail of climate panic, internet activism and viral celebrity. It will also be one of the recipients of what financial advisers call “the Great Wealth Transfer”, which will see retiring Boomers pass down trillions in assets over the next 20 years. With that inheritance, “younger folks are keen to give earlier in their lives”, says John Canady, CEO of National Philanthropic Trust UK. A UK study by Enthuse finds that 31 per cent of Gen Z are regular donors, compared to 27 per cent overall. In the US, research lab the Blackbaud Institute estimates that 59 per cent of Gen Z already gives to charity in some way. Together, Gen Z is redefining philanthropy as an everyday act, permeating their public, private and professional lives.

A UK study by Enthuse regarding how Gen Z is redefining philanthropy finds that 31 per cent of Gen Z are regular donors, compared to 27 per cent overall. In the US, research lab the Blackbaud Institute estimates that 59 per cent of Gen Z already gives to charity in some way. Together they are redefining philanthropy as an everyday act, permeating their public, private and professional lives.

Many benefactors are turning to impact investing, a strategy that creates a positive social or environmental impact and generates financial returns in the process. Seventy-three per cent of Gen Z and Millennial investors demand environmental, social and governance (ESG) criteria from their investment portfolios. “The logic is: we’re going to give this money away to do good, so why don’t we have it in investments that are also doing good?” says Canady. “The previous generation would make the money on one side and give it away on the other. [Younger donors] tie those very much together.” Even the nomenclature is changing: a survey by Foundation Source found that most young people prefer “giver”, “advocate” or “change-maker” to “philanthropist”.

Read the full article about Gen Z redefining philanthropy by Marion Willingham at Financial Times.