Trend #6: Generational Transition of Wealth and Leadership
by Michael Moody
If current trends in wealth and giving continue, America’s next generation of major donors — the big donors from the Gen X and Millennial generations, those in their 20s, 30s, and early 40s — will be the most significant philanthropists ever. They will have unprecedented financial assets available for giving, and all signs point to them wanting to give in new ways that will reshape philanthropic norms. So these emerging “Next Gen Donors” will have an outsized impact on both philanthropy and the world we share. Clearly, we need to understand what kind of donors they want to be.
We are currently in the midst of what scholars believe is the greatest “wealth transfer” in American history. A 2014 Boston College study estimated that just over $59 trillion will be transferred across generations between 2007 and 2061. Not $59 billion — $59 trillion. Most of this wealth transfer is happening within a relatively small group of high-net-worth families, and it means the next gen members of these families will ultimately give significantly more than their predecessors. At the same time, techies, hedge funders, and others in the next gen are making their own wealth, often in staggering amounts, and many are beginning to give that wealth in aggressively innovative ways.
The Johnson Center is on the forefront of research into the philanthropic identities of Next Gen Donors. Our Frey Foundation Chair for Family Philanthropy recently co-authored a book that shows how these rising donors want to fundamentally change philanthropic strategy, and to be much more hands-on and closely engaged than previous generations, while still stewarding the legacy they are inheriting. And this research is informing other Johnson Center programs that help nonprofits, families, advisers, and others in our field respond effectively to what these historically significant donors want and need.
Michael Moody, Ph.D., joined the Johnson Center in 2010 as the nation’s first endowed chair focusing on family philanthropy. He is trained as a cultural sociologist and has been actively working to understand and improve philanthropy and nonprofit organizations for 25 years.
As the Frey Chair, Dr. Moody works with a network of national advisers and partners to implement a comprehensive program of applied research, teaching, professional development, and public service, all designed to advance and promote the field of family philanthropy in the United States.
Learn more about Michael.