Priorities for Baby Boomers in charitable and philanthropic acts involved creating a legacy of charitable contributions. Their charitable habits involved decades of contributions, typically to the same group of charities, and usually local organizations focusing on supporting the arts or cultural institutions such as museums. In addition to this, the driving motivation behind charitable contributions made by Baby Boomers is typically focused on the applicable reduction in taxes. However, according to an article recently completed by The Wall Street Journal, Millennials are motivated to charitable contributions by completely different sources. Millennials wish to contribute to causes that are close to their hearts—something that applies to their personal passions and interests; talk of fewer taxes will do little to persuade this generation.
Why Millennials Donate the Way They Do
Millennials tend to favor socially conscious, globally minded charities that champion civil rights, good business practices and environmental protection. This is due largely to the fact that they have been raised with social media sites as part of their daily lives; social networking has made the world smaller, made global issues seem far more personal. In addition to this, social media has placed a focus on the here and now for Millennials. Their focus is on the immediate impact their donations can make today, not decades from now; this, in turn, neglects the motivation of building a charitable legacy, seen so commonly in Baby Boomers. Instead, they wish to be part of social movements and causes that correspond to their personal passion. This is seen particularly in the participation with the ALS ice bucket challenge. The cause presents the perfect combination of fun, social media exposure and charitable contribution.
According to the 2014 Millennials Impact Report, eighty seven percent of people between the ages of twenty and thirty-five donated a financial gift in the last year. With such a high amount of Millennials making charitable contributions, advisors need to take note of this philanthropic group. The article suggests advisors help Millennials see the physical results of their money; tax forms of the nonprofit of choice should be examined, so clients can see specifically where their money is going.