Younger Generations Are Changing How Families Give

Every family has its own rhythm around giving - for some, it may be the same handful of causes supported year after year, for some it may look like a check written each December, and for others it may involve decisions made quietly by one or two people. However, across all families, we are noticing something - those rhythms are starting to change - in large part due to younger family members, many of whom have different thoughts and preferences on what they want to give to and how. 

The good news is that with that change comes opportunity. Multigenerational wealth planning can be a heavy topic a lot of the time - inheritance, estate plans, who's responsible for what - but, the conversation around family giving can be different. It's often lighter and is one of the few financial conversations that even the youngest members of the family may participate in - by making decisions, weighing in on impact, and getting comfortable talking about money before the bigger, harder conversations arrive. With trillions of dollars expected to pass between generations in the years ahead, how those younger family members learn to give may end up shaping how they handle everything else, too.

Based on research and our own experience working with high-net-worth multigenerational families, here's an overview of what we see changing and how to use it to strengthen both your family relationships and your wealth plan:

Why this is an opportunity, not a disconnect

Every generation tends to build its approach to giving around the experiences that shaped it. Older generations often developed their giving around long-standing relationships - organizations supported for decades, structures like a family foundation built and passed down with care. Younger generations are often coming to giving with different reference points: more visibility into technology and information, a preference for causes that feel personal or immediate, and an interest in experiential or lived giving - through volunteering, advocacy, or even their careers.

Neither approach is better than the other - they're just different starting points. And that's exactly what makes this a good place to start talking across generations. Asking a son, daughter, or grandchild what causes they care about - and why - tends to open up the conversation naturally, without the weight that surrounds topics like inheritance or investment decisions. It's a conversation about values first, dollars second. Often, it's the conversation families wish they'd had sooner.

A few ways families are bringing generations together around giving

• Shared giving vehicles: A family foundation or donor-advised fund can become a shared project rather than one person's decision. In practice, this might mean each generation brings one or two causes to an annual family meeting, and the group decides together where a portion of that year's giving will go.
• A giving "seat at the table": Even a modest, dedicated amount that a younger family member controls independently can build real decision-making experience long before larger financial responsibility arrives. Some families set aside a few thousand dollars a year for a younger member - or a small group of cousins - to research and direct entirely on their own.
• Matching, not replacing: Some families choose to match a gift a younger member makes on their own, rather than redirecting them toward the family's traditional causes. If a grandchild donates to a cause that's meaningful to them, a matching gift from the family fund signals support without steering the decision.
• Room for both styles: Some family members may value a longstanding institutional relationship or a named gift; others may care most about seeing specific outcomes from a gift. Making space for both might mean pairing a traditional gala or dedication with a short follow-up - photos, a site visit, or a simple update on what the gift actually accomplished - so every generation sees the value in their own terms.

The bigger picture

Families who treat giving as a living, evolving practice - rather than a fixed year-end habit - tend to get two things out of it: a giving strategy that stays relevant, and a natural bridge for talking across generations about what actually matters to the family. 

If your family's approach to giving hasn't been revisited in a while, or if a younger family member has started asking questions about where and why you give, that's worth treating as an invitation. We're glad to help think through how to structure it - from the mechanics of a giving vehicle to simply shaping the conversation that gets everyone talking.

Reach out to your Entrust Wealth Partners advisor, or call us at (860) 838-3730 to get started.

This material was prepared by Growth Minded Strategy.

This material was created to provide accurate and reliable information on the subjects covered but should not be regarded as a complete analysis of these subjects. It is not intended to provide specific legal, tax or other professional advice. The services of an appropriate professional should be sought regarding your individual situation.