Innovative Young Leaders Drive New Philanthropy Wave
The Next Wave
The new generation of donors is set to inherit an estimated $5.2 trillion over the next two decades, marking a historic wealth transfer. As this unfolds, emerging philanthropists are cultivating their own identities and driving meaningful change across communities and causes. Millennials are leading this shift, with 74% identifying as philanthropists compared to 35% of Baby Boomers, reshaping the giving landscape. For those embarking on a philanthropic journey, joining a family foundation’s board or honing funding skills can amplify impact. Thoughtful preparation and equipping oneself with the right tools and knowledge ensure philanthropic efforts are effective, well-received, and fulfilling.
Philanthropy Matters
Philanthropy plays a pivotal role in addressing societal and environmental challenges, acting as a powerful catalyst for solutions to issues like poverty, education, climate change and health care. The rising generation has a unique opportunity to shape the future with innovative approaches and deeper involvement.
Getting Started
Beginning a philanthropic journey involves reflecting on personal values to identify what truly matters and the changes desired in the world. Engaging with the community, learning from others’ experiences, and attending local meetings or charity events offer insights into pressing issues. Volunteering provides firsthand experience with organizations, helping to understand their inner workings, needs and outcomes. Managing expectations is crucial once the giving journey begins. Creating a strategic giving plan that outlines priorities and budget, while remaining flexible, ensures philanthropic efforts are effective and fulfilling.
Case Study
A family foundation dedicated to youth empowerment and education is transitioning decision-making to its third generation. A third-generation member volunteered with a local charity mentoring disadvantaged children, gaining valuable insights to introduce innovative strategies and foster collaboration as a board member, strengthening the foundation’s impact.
Finding Your Own Identity
Creating a path within family giving starts with discovering the family’s philanthropic legacy. Understanding the history and values that shape family giving serves as a strong foundation. Growing skills through educational programs, mentorship and collaborative funding opportunities enhances abilities, empowering informed and impactful decisions. Collaborating with family to honor values and traditions while introducing fresh perspectives can lead to meaningful changes. Expanding impact beyond family legacy by joining charitable boards, volunteering and advocating for personal causes allows development of a unique philanthropic identity.
Philanthropy is a Journey
Philanthropy is a journey of personal growth and creating a legacy of positive change. Embrace the opportunity to make a meaningful impact and inspire those around you. Continuous learning and adaptation are key to maximizing impact, contributing to a better world for future generations. Enjoy the journey and the fulfillment it brings!
Rick Barragan is the Managing Director,
Los Angeles Market Manager, for
J.P. Morgan Private Bank.
[email protected] | (310) 860-3658
privatebank.jpmorgan.com/los-angeles
Source: “The new wave of philanthropy,” by Louisa MacDonald, Senior Associate and Philanthropy Adviser
