Next-Gen Philanthropy: How Millennials and Gen Z Are Changing the Giving Landscape

Philanthropy has long been a way for families to express their values, strengthen communities, and build legacies that live beyond their lifetimes. While those principles remain true, philanthropy is entering a new era shaped by Millennials and Gen Z.

Unlike previous generations, they are not waiting until later in life to give back. As they enter peak earning and inheriting years, they are giving back earlier¹ and bringing a new mindset to philanthropy. Their approach is anchored in transparency, driven by social justice, and powered by technology that moves capital and ideas faster than ever before.

This generation isn’t rejecting tradition, but they’re redefining impact in real time.

Transparency Leads the Way

For previous generations, philanthropy was built on trust. Donors supported institutions they knew well, often based on personal connections or a shared belief in the mission. While that sense of trust still matters deeply, Millennials and Gen Z are layering in something new: a demand for clarity. They want to know where their dollars go, how they are used, and what difference they make. This is not skepticism; it reflects a generation accustomed to information being available, verifiable, and shared openly.

Impact is no longer something that is felt; it’s shown. They favour organizations that define clear goals, track progress, and report on results in a way that is both measurable and accessible. For family foundations, this means that success now depends not only on gift size but on how transparently results are communicated. Transparency also has the power to connect families internally. When information replaces assumption, conversations become more open and grounded in shared understanding.

Social Justice at the Core: Causes Driving Millennial & Gen Z Giving

The next generation’s philanthropy is rooted in purpose and equity. Millennials and Gen Z are not simply giving to good causes; they are supporting movements that address deeper social and environmental challenges, such as climate change, reconciliation, mental health, gender equality, and affordable housing. They are more likely to support community-led organizations and initiatives that are close to the issues rather than large institutions with formal hierarchies.

For these donors, philanthropy is not about control but collaboration. Many are inviting communities to help shape priorities, define success, and participate directly in decision-making.

Recent regulatory changes in Canada have also created opportunities for families to expand their giving to new types of organizations. Updates to the Income Tax Act and CRA rules now allow registered charities to fund non-qualified donees such as grassroots groups, Indigenous-led initiatives, community collectives, and early-stage social enterprises that may not have charitable status but are doing critical work on the ground.

By combining purpose with participation, the next generation is helping philanthropy become more inclusive and more responsive to the issues shaping society today.

Real-Time Giving: How Technology Is Transforming Philanthropy

Technology is transforming philanthropy, making giving faster and more responsive. Where previous generations gathered at fundraising dinners or annual board meetings, today’s donors can contribute from their phones within minutes of seeing a story that moves them.

Social media, crowdfunding, and peer-to-peer giving have made philanthropy faster, more personal, and more visible. Donors can respond immediately to crises, mobilize others, and watch their collective efforts unfold in real time. One family, for example, may continue its long-term work in climate research through a foundation while the next generation organizes a digital fundraising campaign within hours of a wildfire to support affected communities.

This immediacy does not replace traditional giving; it complements it. Families are finding ways to combine structured, long-term planning with flexible, real-time action. Together, these approaches create a balanced ecosystem of giving that is both strategic and responsive.

Modern Giving Tools: Donor-Advised Funds, Impact Investments & More

As giving becomes more dynamic, the tools behind it are evolving. Families are exploring donor-advised funds, spend-down charitable funds designed to be distributed within a defined period, and impact-focused investments that align their capital with purpose. These structures offer donors the flexibility to take immediate action while anchoring their giving in clear goals and disciplined planning.

Younger donors increasingly see wealth as a platform for influence rather than a series of separate financial decisions. They use every available channel, including grants, investments, and advocacy, to pursue outcomes that matter to them. A family might pair traditional donations with mission-related investments or sustainable portfolios aligned with their values.

Technology reinforces this mindset by making data and results visible. Digital dashboards and reporting tools allow donors to track outcomes and help assess their strategies. This approach makes giving more intentional and encourages accountability aligned with the standards that younger generations expect.

While older Canadians still contribute the majority of charitable dollars, Millennials and Gen Z are driving the fastest growth in digital and recurring giving². Their gifts may be smaller, but their consistency, connectivity, and ability to mobilize others make them a powerful force in shaping the future of philanthropy.

How Families Lead Together

As the philosophy behind giving changes, so do the structures that support it. Families are rethinking governance to make philanthropy more collaborative, inclusive, and relevant for future generations. Younger family members are joining foundation boards earlier, not only as observers but as active contributors. Many families are creating advisory councils or rotating board seats to bring new perspectives into decision-making. Some are also adopting shared leadership models that include both family and community members, ensuring decisions reflect lived experience and broadened insight. These approaches strengthen relationships and turn governance into a space for learning, connection, and co-creation.

A Living Legacy

What emerges is a new kind of philanthropy: transparent, inclusive, and powered by technology. It is faster, more collaborative, and more connected to the issues that define our time.

Legacy today is not about permanence; it is about evolution. It means inviting new voices to the table, exploring new tools, and allowing the spirit of giving to grow alongside changing social realities.

The next generation is not waiting for its turn. They are already leading in ways that are reshaping the meaning of philanthropy itself. Families and organizations that embrace this change will not only preserve what matters most but ensure their impact continues to reflect the world as it changes.