Gen X millionaires are more generous than their parents
The younger wealthy generations are twice as generous with their donations to charity as older generations, according to a new survey.
Generation X, which includes those aged between 28 and 42, gave nearly $20,000 in 2006 to charity, compared to the Baby Boomers (ages 43 to 61) and the Silent Generation (ages 62 to 77) who gave roughly $10,000 each, according to a new survey by Chicago-based wealth manager Northern Trust.
“Not only are young millionaires giving more than older generations, they are giving more than they have in the past,” said Marguerite Griffin, senior vice president and national director of philanthropic services for Northern Trust.
She added: “Historically younger millionaires are more engaged in building wealth and managing immediate financial obligations of starting a family or career, and the advance of technology has made giving more accessible. The abundance of information about nonprofit organizations that can be found on the internet and the ease of contributing to a charitable cause, or even starting your own global giving initiative online, is a huge convenience for younger generations, who are generally more comfortable with online giving vehicles.“
Also, looking ahead GenX millionaires are most likely to increase their giving modestly, unlike older high-net worth generations who expect their giving levels to remain the same as 2006 and 2007.
When asked about their main philanthropic goals, Gen X millionaires were more motivated to accomplish family related goals than older generations. 15% of Gen X millionaires said that creating a lasting legacy for themselves or their family was their main goal, compared with 4% of older millionaires, and 12% said that honoring a loved one was their primary goal, compared with 5% of older millionaires.
“Increasingly, millionaires want to ensure their children understand the responsibility that comes with wealth,” said Griffin. “Along with planning for their children’s financial future, young millionaires want to instill strong values, and get them involved in giving early on, so that it becomes an important part of their lives.”
Gen X millionaires are more globally-inclined in their giving than older generations: 14% of the organizations receiving donations from Gen X households operate internationally, compared with 8% for Baby Boomers and 5% for Silent Generation millionaires.
The survey also showed most millionaires prefer to support personal causes during their lifetime, rather than posthumously. Over half of the respondants felt it was “much more important to give during their lifetime” versus via a bequest in their will, accounting for only 3% of respondents.
Millionaires do however, still plan to leave a sizeable portion of their estate to charity, about 16% on average. “Increasingly millionaires want to see their money at work,” said Griffin. “They want to witness the impact of their contributions and they want to be - and want their families to be - part of the change.”
The survey was carried out in the states. A total of 1,014 HNWIs responded in the fourth quarter of last year.
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