Here's a trend that should worry anyone thinking about the future of charitable giving: wealthy Americans are increasingly making donation decisions without consulting their kids and grandkids. According to a recent Bank of America (BAC) study, only 13% of affluent households now involve younger relatives in deciding which causes to support. That's down from 16.5% just two years ago.
The biennial Study of Philanthropy, conducted in partnership with the Indiana University Lilly Family School of Philanthropy, suggests this creates a missed opportunity to develop philanthropic habits among Millennials and Gen Z. After all, these younger generations will eventually inherit most of this wealth—the survey indicates children and grandchildren can expect to receive about 75% of their ancestors' household fortunes, with the remainder split among religious organizations, secular charities, and other non-spouse heirs.
The Rise of Structured Giving
The way wealthy Americans donate is evolving rapidly. Philanthropists are increasingly turning to specialized giving vehicles—think private foundations, donor-advised funds, endowment funds, and wills with specific charitable provisions. Nearly 1 in 5 charitable donations now flows through these vehicles, a significant jump from just 11% in 2015.
The trend is accelerating. Nearly a quarter of affluent households already have a giving vehicle, and among households worth between $5 million and $20 million, 48% plan to establish one within the next three years. This shift toward more formalized giving structures suggests a more strategic, business-like approach to philanthropy.
The Expert Donor Advantage
Not all wealthy donors approach charity the same way. The survey identifies a subset of "expert donors" who are far more hands-on with their philanthropy. These donors track the effectiveness of their gifts at much higher rates—62% monitor results compared to just 20% of wealthy donors overall.
The data shows this engagement pays dividends. Expert donors give an average of six times more than "novice donors," and more than three-quarters of expert donors report their donations achieved the intended effect, compared to only 40% of all donors surveyed.
Volunteering Makes a Comeback
After the pandemic slump, volunteering among wealthy Americans is recovering. In 2024, 43% of affluent donors volunteered their time, up from 37% two years earlier. While still below pre-COVID levels, the trend is moving in the right direction.
Wealthy volunteers put in serious hours—an average of 120 hours across at least two organizations in 2024. And there's a strong correlation between volunteering and financial generosity: volunteers donated two and a half times more money on average than non-volunteers.
What are they doing with that time? Distributing basic needs items topped the list at 36%, followed by volunteering for religious organizations at 29%. The connection between hands-on involvement and increased financial support suggests that direct engagement with causes creates deeper commitment to philanthropic missions.
