As millennials continue to inherit wealth and take on a larger role in philanthropy, wealth managers are beginning to take notice of the changing landscape. With an estimated $550 billion a year being transferred to millennials, they are becoming a key demographic for wealth management firms to connect with and support. This generation, which represents 42% of the U.S. population, is reshaping traditional philanthropic trends with their emphasis on purpose, impact, and transparency. Unlike previous generations, millennials approach giving with distinct values and preferences, leading to a revolution in how charitable contributions are made and perceived.
To effectively engage with millennial givers, wealth managers are advised to offer philanthropic services as an integral part of their offerings. With 59% of millennials expecting their financial advisor to provide services beyond financial advice, integrating philanthropic advisory services can attract and retain millennial clients. Wealth managers should also take the time to understand millennial values, as many prioritize social impact and sustainability in their investment decisions. By offering philanthropic investment options aligned with these values, wealth managers can connect with millennial clients on a deeper level.
In addition to tailored philanthropic solutions, wealth managers should focus on utilizing technology to streamline the philanthropic process for millennial clients. With millennials accustomed to digital solutions in all aspects of their lives, offering online platforms or mobile apps for researching charitable organizations, tracking giving, and receiving updates on the impact of donations can appeal to this demographic. As millennials engage in hands-on philanthropy through volunteering, mentoring, and using their skills to make a real difference, wealth managers should encourage and support their direct involvement in causes they care about.
Education and collaboration are also key components of effectively engaging with millennials in philanthropy. Wealth managers can help this generation plan out their philanthropic endeavors, ensuring that their wealth is utilized in a meaningful and impactful way. By offering customized giving strategies tailored to individual interests and passions, wealth managers can establish long-term relationships with millennial clients. Ultimately, connecting with millennials on their terms and supporting their philanthropic goals can lead to significant benefits for wealth managers in the long run, as this generation’s wealth continues to grow at a rapid pace.
