Bank of America’s latest research says the great wealth transfer is colliding with a generational divide over giving. Among wealthy Americans, 47% believe the next generation is prepared to take on family philanthropic causes, down from 55% in 2024.
The bank surveyed more than 1,430 wealthy individuals in the U.S. aged 21 or older with at least $3 million in investable assets, excluding primary residence. It found that the share of parents who believe their children share their commitment to giving back fell to 65% from 76%.
That concern has become familiar to wealth advisers. Tom Thiegs, managing director of leadership and legacy at Ascent Private Capital Management with U.S. Bank, told Fortune that ultra-affluent families are worried wealth could dampen their children’s drive. Trent Von Ahsen of Cedar Point Capital Partners said his clients are leaning on mentorship and phased wealth transfers rather than lump-sum inheritances.
But the data also cuts against the panic. Gen Z and millennial donors support an average of 12 charitable causes, compared with eight among wealth donors overall. They are roughly twice as likely to use a donor-advised fund, and 87% say honoring their family’s philanthropic tradition is important. Another 86% say it is equally important to establish their own charitable identity.
Jennifer Chandler, head of philanthropic solutions at Bank of America Private Bank, wrote that younger donors want to honor the traditions that shaped them while defining their own impact. She said families have an opportunity to engage the next generation early and create a shared vision for giving while leaving room for new priorities and approaches.
The study also found major differences in how generations give. Among baby boomer and Silent Generation donors, 92% give through cash contributions, while just 56% of Gen Z and millennial donors do. Younger donors are more likely to give through charitable trusts, family foundations, fundraising, and mentorship.
Dianne Chipps Bailey, managing director of BofA’s Philanthropic Solutions division, told the Chronicle of Philanthropy that many younger donors come from families that already set up foundations, charitable trusts, or donor-advised funds. She also said younger donors gravitate to donor-advised funds because they are digital-first.
Younger donors are nearly three times as likely as older ones to fundraise for the causes they support, at 30% versus 11%, and six times as likely to mentor, at 26% versus 4%.
The market lesson is plain: wealth does not guarantee continuity. Capital can be handed down, but habits have to be earned. Even nonprofits built around boomer-era checkbooks now face a generation that wants visibility, control, and proof that every dollar goes where it is supposed to go.
That is not a crisis for free enterprise philanthropy. It is a reminder that accountability matters, even when the money is private. Families and nonprofits that can show results will keep trust. Those that cannot will learn that the next generation is not obligated to follow old habits just because the inheritance is large.
