Millennials are poised to drive a philantrophic boom, according to GlobalData Financial Services
Investing back into society is growing in importance among the young and wealthy. This generation is eager to make an impact in the world from the moment they come into wealth, rather than once they are established.
As such, a philanthropic boom may be on the horizon.
Data from our HNW Customer Demographics shows that the highest proportion of younger HNW individuals are in the Canadian, Australian, and US markets.
Yet the level of provision for philanthropy in these markets is mixed – and in some cases is clearly not a priority, as our HNW Product and Services Demand tool shows.
For example, in Canada 17% of HNW individuals are aged 40 and under; however, philanthropic provision is only offered by a quarter of wealth managers.
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On the flipside, the story in Australia is more positive with over two thirds of wealth managers offering philanthropy services.
Wealth managers opportunity
Even so, it is evident that some wealth managers are missing a trick. Certainly those wealth managers not in the philanthropy space need to seriously consider if and how they should play in this space – or else risk losing clients to other providers.
“Millennials are now in a position to influence their inheritance,” David Stubbs of JP Morgan expressed at the recent PBI London conference.
Consequently, wealth managers are going to have to ensure that the needs of both inheritors, and entrepreneurial millennials, are met when it comes to philanthropy, especially with millennials giving a lot earlier and more than their elders.
Similarly, wealth managers must also ensure a long-term sustainable strategy is in place for philanthropic options which are not to the detriment of the rest of the portfolio.
In the words of Melinda Gates, wife to Bill: “Philanthropy is not about the money. It’s about using whatever resources you have at your fingertips and applying them to improving the world.”
It seems as though the new generation of wealth want to apply this early on for the greater good of society.