Next Generation Giving

Advising the impact generation

Resources to help professional advisers discuss philanthropy with the next generation.

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Welcome to the Charities Aid Foundation

We help donors to give more impactfully and charities to build their resilience so they can do more of their life-changing work.

Personal giving From one-off donations to long-term giving, or designing your personal philanthropic strategy, we work together to help you realise your giving ambitions. Corporate giving You have the vision for making a difference. So do we. We help you plan how to give based on your goals. Services for charities Helping your charity or social enterprise become more resilient. Insights Discover the latest insights for donors and charitable organisations to help create a greater impact About us We are a leading charity, working at the centre of the giving world. We help donors to give more impactfully and charities to build their resilience so they can do more of their life-changing work. Donate  
 
 
 

Personal giving

From one-off donations to long-term giving, or designing your personal philanthropic strategy, we work together to help you realise your giving ambitions.

DISCOVER OUR PERSONAL GIVING SOLUTIONS

Corporate giving

You have the vision for making a difference. So do we. We help you plan how to give based on your goals.

DISCOVER OUR CORPORATE GIVING SOLUTIONS

Services for charities

Helping your charity or social enterprise become more resilient.

DISCOVER HOW WE SUPPORT CHARITIES

Insights

Discover the latest insights for donors and charitable organisations to help create a greater impact

Explore

About us

We are a leading charity, working at the centre of the giving world. We help donors to give more impactfully and charities to build their resilience so they can do more of their life-changing work.

Find out more about CAF

A new perspective on philanthropy

Dubbed the ‘Great Wealth Transfer’, £5.5 trillion is set to pass between generations within the next thirty years in the UK1.  As wealth increasingly passes to demographic groups with different perspectives, priorities and motivations to previous generations, professional advisers face changing client requirements and expectations.

Why this generation matters

The next generation are expected to be the most significant donors in history.

Unmatched inheritance 

They will receive unprecedented levels of financial resources through inheritance or gifts3

New priorities 

They are displaying new attitudes and priorities, including using money for good through investing and philanthropy4

Why their values matter

Research shows that millennials lean on their personal values when making decisions more than any other generation. This includes when it comes to consumer preferences, career decisions and investment options.

64%

Express an interest in impact investing, compared to 50% of Gen x and 34% of baby boomers

75%

Of millennials are willing to pay more for an environmentally sustainable product, compared to 64% of Gen X and 57% of baby boomers

81%

Expect companies to publicly commit to be good corporate citizens

83%

Say they'd be more loyal working for a business that enables them to contribute to social problems

Why their attitudes to giving matters

The next generation wish to largely fund similar areas to their parents' generation, but it's how they approach their giving that differs.

A desire to do more

They are committed and aspire to do more, but can struggle to engage more deeply due to overload, competing priorities on their finances, or fear of future financial uncertainty.

Younger donors could benefit from trusted, expert advice to make the most of their giving.

A focus on impact

Achieving real impact with their giving is what's important, rather than giving out of a sense of duty.

This frames the approaches they take, i.e. being more hands-on, addressing local vs global causes, or funding systemic vs direct work.

A range of tools and vehicles

They are more likely to use all tools at their disposal for giving, including social investing, impact investing, volunteering their time, talent and skills, and sharing their networks.

They require a holistic giving strategy, not just advice on philanthropic vehicles and tax optimisation.

An openness to collaboration 

Many younger donors are eager to engage with their peers and form networks to share ideas or pool their funds.

They are keen to learn and find innovative ways to achieve impact.

Why all this matters to advisers

Understanding the goals, values and attitudes of the next generation can help form better client relationships and attract your future clients.

While 80%

Of advisers make it a practice to ask their clients about their interest in charitable giving...

Only 45%

Of HNWI are fully satisfied with philanthropic conversations with advisers, which may be why...

A lack of

Relationship is cited by IFA's as the main reason clients leave their services following inheritance.

References

1. & 3. Kings Court Trust, ‘Passing on the Pounds: the rise of the UK’s inheritance economy’. 2017.
2., 4., 9. & 11. Charities Aid Foundation, ‘Giving Thought Podcast: Next Gen Philanthropy with Sharna Goldseker and Michael Moody’. 2021.
5. GreenPrint, ‘Business of Sustainability Index 2021’. 2021.
6. Horizon Media, ‘Finger on the Pulse’. 2017. 61% of millennials also responded to a PRCA survey saying it’s important that companies take a stance on issues that matter to them.
7. Cone Communications, ‘Millennial Employee Engagement Study’. 2016.
8. America Century Investments, ‘Impact Investing Study’. 2020.
10. Beacon Collaborative, ‘Giving Needs of the Future Wealthy’. 2021.
12. & 13. The U.S. Trust, ‘Study of the Philanthropic Conversation: Understanding Advisor Approaches & Client Expectations’. 2018.
14. Kings Court Trust, ‘Wealth Transfer in the UK: the continuing story of the inheritance economy’. 2018.