The Future of Giving*
*in 2025.
Full article, courtesy of Crain Currency here: https://www.craincurrency.com/philanthropy/philanthropy-2025-emerging-trends-shaping-future-giving
(Below is a summary by Pluri)
In a rapidly changing world, the dynamics of philanthropy are evolving at an unprecedented pace. Family offices and high-net-worth individuals (HNWIs) are leading this transformation, leveraging tools like donor-advised funds (DAFs) and digital platforms to make a lasting impact. As younger generations and women step into decision-making roles and societal pressures shape giving priorities, the philanthropic landscape is bracing for significant shifts.
But how will these trends unfold against the backdrop of shifting tax policies and political uncertainty?
Key trends we’re seeing…
Rising influence of women and younger generations
With wealth being passed down as part of the great generational transfer, women and younger decision-makers are prioritising collaborative, sustainable, and impactful giving. Causes such as women’s empowerment, child care, and climate change are taking centre stage.Growth of Donor-Advised Funds (DAFs)
DAFs are becoming the preferred vehicle for strategic giving, offering tax advantages, simplicity, and intergenerational engagement. The rise of DAFs reflects a broader shift from traditional family foundations to more flexible and efficient philanthropic tools.Increased reliance on digital platforms
Technology is reshaping how donors connect with charities. Personalised giving experiences, streamlined donations through apps, and data-driven insights are making philanthropy more accessible and engaging.Impact of policy and economic factors
Changes to tax laws, such as the potential extension of Trump’s 2017 tax cuts, could dampen philanthropic contributions by reducing tax incentives in America. Elsewhere - it’s a common story that inflationary pressures are also expected to influence giving behaviours.Focus on local and underfunded causes
Donors are responding to political and societal shifts by funding issues like reproductive rights, immigration, and climate action. Mind you, these are US-centric causes that don’t hold the same political sway elsewhere across the globe.
Donor-Advised Funds and QCDs
DAFs are surging in popularity among HNWIs and family offices, offering a tax-efficient and strategic approach to giving. DAFs allow donors to achieve tax deductions, avoid capital gains taxes, and foster meaningful family discussions about shared values. Similarly, qualified charitable distributions (QCDs) from individual retirement accounts are becoming a favoured strategy, especially among older donors looking to establish multi-generational charitable vehicles.
This flexibility and simplicity are particularly appealing to those seeking to wind down complex family foundations, as Jayne Smith of Adero Partners highlights. “They want to make donations without the administrative burden,” she notes, emphasising the growing trend of converting foundations into DAFs.
This trend is also reflected across Australia and Asia - with more family offices taking advantage of third-parties to manage and invest their funds.
Women and younger generations
The philanthropic priorities of younger donors and women reflect broader societal shifts. These groups champion causes that address systemic inequities, from women’s empowerment to climate action. “Studies show that when women are lifted, their entire family is lifted,” observes Karen Kardos of Citi Private Bank, underscoring the transformative potential of these investments.
Moreover, the collaborative nature of their giving is reshaping philanthropy. Younger generations are integrating philanthropy with sustainable investing, recognising the interconnectedness of financial returns and social impact.
Australian initiatives, like NEXUS Summit, are opportunities for young philanthropists to put forward their game-changing approach to giving.
Technology as a game changer
Digital platforms are revolutionising philanthropy, providing tools for tailored giving experiences and transparent impact measurement. From mobile donations on apps like Venmo to virtual updates on charitable projects, technology is lowering barriers to entry and attracting a younger, tech-savvy donor base. A Vanguard Charitable survey found that 68% of Americans anticipate future donations being predominantly made through digital means.
Balancing optimism with challenges
While the philanthropic sector remains robust, economic and policy factors may complicate the road ahead. As we approach 2025, the convergence of generational change, technological innovation, and shifting societal priorities offers an exciting opportunity for philanthropy to redefine its impact. For family offices and HNWIs, staying ahead of these trends will be critical to maximising both financial and social returns.
To navigate these changes, philanthropists must adopt a proactive, strategic approach. Whether through donor-advised funds, digital platforms, or collaborative family discussions, there is immense potential to make a difference. For more insights into the evolving philanthropic landscape, explore the full article by Marcus Baram at Crain Currency.
The future of giving is not just about wealth redistribution. It’s about vision, values, and action.
How will you shape the next chapter of your philanthropic legacy?
