High-net-worth giving splits along generational and gender lines, BofA survey finds

A new survey by Bank of America Private Bank highlights distinct generational and gender differences in how affluent Americans approach charitable giving.

According to the study, which surveyed 1,007 high-net-worth individuals in the US with at least $3 million in investable assets, a strong 91 percent majority of affluent Americans give to charitable causes. However, their motivations and strategies for giving vary widely based on age and gender.

The survey reveals that while direct financial contributions are the most common form of philanthropy, younger donors, particularly those aged 21 to 43, are more inclined to take direct action by volunteering, fundraising, and serving on nonprofit boards. In contrast, older donors tend to focus more on monetary contributions.

Jennifer Chandler, head of philanthropic solutions at Bank of America Private Bank, noted in a statement: “Our 2024 study reveals a common thread among high-net-worth individuals: a strong desire to make a positive change with lasting impact. However, responses also make it clear that there’s more than one way to achieve that goal.”

The study also shows generational differences in the types of causes donors support. Younger respondents are more likely to give to issues such as homelessness (41 percent of younger donors versus 21 percent of older donors), human rights and social justice (33 percent versus 18 percent), and climate change (32 percent versus 17 percent). On the other hand, older generations prioritize religious organizations (41 percent of older donors versus 18 percent of younger donors), animal welfare, and military causes.

Donors are also split in how they assess the impact of their contributions. Younger philanthropists are more likely to link their names with their giving efforts, with 42 percent stating they are likely to seek public recognition for their contributions, while 69 percent of older donors prefer to give anonymously.

The survey also found younger donors are more inclined to use advanced giving vehicles, such as charitable trusts, donor-advised funds, and family foundations. For instance, 36 percent of younger respondents use charitable trusts, compared to just 7 percent of older donors. This reflects a growing trend among younger philanthropists to structure their giving for long-term impact.

Gender-wise, the study reveals men and women approach philanthropy differently as well. Women are more likely than men to support causes that focus on the advancement of women and girls (23 percent of women versus 12 percent of men), while men are slightly more likely to lean towards hunger and poverty-related issues. Women also play a larger role in introducing their children to philanthropy, with 46 percent of women taking on this responsibility, compared to 35 percent of men.

Generational perceptions of philanthropic leadership present an interesting contrast. While 88 percent of younger donors believe their generation is well-prepared to assume leadership in charitable efforts, only 50 percent of older donors agree. Despite these differing views, younger donors expressed a strong commitment to keep up the tradition of giving back, with 88 percent sharing their parents’ dedication to philanthropy, although many said they are taking a different approach from mom and dad.