Bank of America Private Bank Study of Affluent Americans Finds Generational and Gender Divides in Charitable Giving

PRNewswire 9-Oct-2024 8:15 AM

More than nine in 10 high-net-worth Americans engage in philanthropy

NEW YORK, Oct. 9, 2024 /PRNewswire/ -- The vast majority (91%) of affluent Americans donate to charity, but giving motivations, priorities and strategies vary by generation and gender, according to new data from Bank of America Private Bank.

Direct giving with a financial contribution is the most common form of philanthropic involvement. However, younger donors (ages 21-43) prioritize direct action, such as volunteering, fundraising, mentorship and sitting on boards.

"Our 2024 study reveals a common thread among high-net-worth individuals: a strong desire to make a positive change with lasting impact," said Jennifer Chandler, Head of Philanthropic Solutions at Bank of America Private Bank. "However, responses also make it clear that there's more than one way to achieve that goal. Generational and gender experiences shape worldviews and values, influencing cause selection and how people give."

Differences in Age: Philanthropy is a way to impact the future, but what that impact looks like varies by age.

• When asked about their reasons for giving, all generations are motivated by making a lasting impact (69% older vs. 63% younger). However, older respondents are more than twice as likely to be driven by a sense of obligation (56% older vs. 25% younger).
• Younger donors give to causes related to homelessness (41% younger vs. 21% older), human rights/social justice (33% vs. 18%), climate change/environment (32% vs. 17%) and the advancement of women and girls (21% vs. 15%).
• Older donors tend to prioritize giving to religious organizations (41% older vs. 18% younger), animal welfare (32% vs. 25%), military (24% vs. 15%) and cultural/artistic conservation and creation (22% vs. 12%).
• As many are inheritors of wealth, younger donors surveyed are more likely to use giving vehicles, including charitable trusts (36% younger vs. 7% older), family foundations (25% vs. 3%) and donor advised funds (22% vs. 8%).
• Younger donors are more likely than older donors to gauge the success of their philanthropic efforts by public recognition (27% younger vs. 8% older). Additionally, 42% of younger donors say they are likely to associate their names with philanthropic efforts, while 69% of older donors give anonymously.

The Gender Divide: Just as age factors into one's philanthropic preferences and involvement, so too does gender.

• Men are twice as likely to become involved in philanthropy because of their spouse/partner's ideas (16% men vs. 8% women).
• Men are slightly more likely to give to causes related to hunger and poverty (45% men vs. 40% women). Women are significantly more likely than men (23% women vs. 12% men) to direct their support toward causes supporting the advancement of women and girls.
• Women shoulder the responsibility of introducing their children to philanthropy. When asked who is more likely to teach or talk to their children about participating in philanthropy, 46% of women point to themselves, while only 35% of men say the same.

Passing the Baton: Intergenerational skepticism surrounds philanthropic effectiveness.  

• The vast majority of younger donors (88%) feel their generation is prepared to assume philanthropic leadership, and 86% believe the next generation will surpass the effectiveness of previous generations.
• However, only 50% of the older generation think the next generation is prepared to take on and support philanthropic causes.
• Many younger donors say they take a different approach to philanthropy (80%) than the previous generation but share their parents' commitment to giving back (88%).
• Older donors' responses show the inverse: They perceive their children to share their philanthropic approach (67%) but demonstrate lower levels of commitment (73%).

2024 Bank of America Private Bank Study of Wealthy Americans Methodology

Escalent, an independent market research company, conducted an online survey on behalf of Bank of America Private Bank. The survey consisted of 1,007 high-net-worth (HNW) respondents throughout the U.S. Respondents in the study were at least 21 years of age with at least $3 million in investable assets, excluding primary residence. The margin of error is +/- 3, reported at a 95% confidence level. The respondents are a nationally representative sample of the U.S. high-net-worth population and not necessarily clients of Bank of America or its wealth and investment management businesses.

Bank of America

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Julia Ehrenfeld, Bank of America
Phone: 1.646.855.3267
Julia.Ehrenfeld@bofa.com

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SOURCE Bank of America Corporation