Latest figures from the Dorothy A. Johnson Centre for Philanthropy in the US concludes that $59 trillion of wealth will be transferred across generations between 2007 and 2061. Much of this is concentrated amongst UHNW families and with it will come inevitable changes too.
Philanthropy and donor decisions are also changing and there is a tendency for the next generation to be more active in terms of volunteering and donating, and the causes that they are prepared to support may well be different to their predecessors.
What this means for the charity sector is up for debate but there may well be a change in the nature of family and family business philanthropy and charities themselves may well need to develop and evolve the ways that they engage and interact with donors too.
Complacency is not going to 'cut-it' and there will be changes. The next generation of philanthropists may well support more social causes too.
Although this piece is focused on the US and giving in the US in particular, there are underlying trends that will undoubtedly be replicated, to some degree at least, around the world, and it is clear, that the world of philanthropy is changing.
The growth of foundations and an unprecedented transfer of wealth are among trends the nonprofit sector will need to watch in the coming year. That’s according to a new white paper released by the Dorothy A. Johnson Center for Philanthropy at Grand Valley State University that highlighted 11 important trends affecting philanthropy. “We wanted to talk about the growth of philanthropy, growth in the number of foundations, and the increased growth in donors,” said Kyle Caldwell, executive director of the Johnson Center. “We are still going through this large transfer of wealth, probably the largest transfer we’ve ever seen in our country.”