September 2014
Portraits of young
philanthropists:
How Generation X and Generation Y are
transforming charitable giving
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September 2014
Portraits of young philanthropists:
The next generation of philanthropists
I
nformed, committed, innovative and engaged, Generation
X and Generation Y philanthropists are quickly changing
the world of charitable giving. And, by some measures,
these groups of individuals, born after 1965 (Gen X from
1966 to 1976 and Gen Y from 1977 to 1994), may be the most
powerful generations the philanthropic world has ever seen.
for High Impact Philanthropy and faculty member at the
School of Social Policy & Practice, explains that every
philanthropist is unique and approaches charity through the
lens of his or her own specific life circumstances. “People
bring who they are, what they know and who they know to
giving,” she says.
According to John Havens and Paul Schervish from the Center
on Wealth and Philanthropy at Boston College, roughly $41trn
will be transferred to these generations via the previous
ones by 2052, the largest transfer of wealth in the history of
the US. “As wealth becomes more concentrated, next-gen
individuals will potentially be our biggest philanthropists
ever,” says Dr Michael Moody, Frey Foundation chair at the
Johnson Center for Philanthropy in Grand Rapids, Michigan.
“It’s a relatively small group of people, but they will have an
outsized impact on the philanthropic landscape.”
Nevertheless, while recognising that there is no one-size-fitsall approach for any group of individuals, Gen X and Gen Y
philanthropists remain united by a combination of factors: an
increasingly global mindset, an active engagement in giving
and a strong desire to have a measureable, enduring impact.
Who are these young, influential philanthropists, and how
are they already leaving their mark on the world of charitable
giving? These are the principal questions answered in a series
of reports that detail three prominent categories of young
philanthropists: entrepreneurs, financiers and heirs.
To find answers, we turn to leading experts in the field—as
well as young philanthropists themselves. In our exploration,
we highlight differences with previous generations, while
also identifying important distinctions within young
philanthropists’ own ranks. Katherina Rosqueta, founding
executive director of the University of Pennsylvania’s Center
Globally committed
As globalisation and technological advances expand their
horizons and connect them instantly to the rest of the world,
Gen X and Gen Y philanthropists have developed a broader
canvas and a deeper understanding of different communities
than did their parents and grandparents. “Young givers don’t
just embrace multiculturalism. They are multicultural by
nature,” says Aimee Laramore, associate director of the Lake
Institute on Faith & Giving at Indiana University’s Lily Family
School of Philanthropy.
Indeed, the growing popularity of global causes over the
past 10 years largely reflects the growing influence of
members of Gen X and Gen Y in philanthropy, Ms Laramore
notes, if not necessarily their direct action. Since the
Giving USA Foundation began tracking donations to the
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international affairs sector in 1987, those charities’ share of
philanthropic gifts has risen steadily. According to the 2014
Giving USA report, while only 3% of charitable gifts went to
the international affairs sector in 1999–2003, this percentage
doubled to 6% in 2004–2008 and remained at that level in
2009–2013. “Generation X and Y philanthropists are interested
in contributing to their local communities but also their global
community,” affirms Dr Una Osili, director of research at
Indiana University’s Lilly Family School of Philanthropy.
The international worldview embraced by Gen X and
Gen Y philanthropists reflects cultural influences and
growing global connectedness, but these donors also share
the formative experiences of school-mandated community
service and outreach programmes like Teach for America and
AmeriCorps, founded in 1989 and 1993, respectively. As a
result, they learned to look outside their own communities
starting from an early age. Ms Laramore further explains,
“Young philanthropists are embracing giving, not as
something they do on the side, but something central to
who they are.”
Actively engaged
Traditional philanthropy has often been about providing
funding for and potentially sitting on the board of an
established charitable organisation. The next generation of
givers is substantially broadening their philanthropic toolkit
by pursuing additional approaches that are both more active
and more technologically innovative.
Connected in myriad ways and active on multiple fronts,
young philanthropists rely on the Internet and advances in
communications technology to underpin the full range of
their charitable activities. In particular, technology helps
younger generations to research issues instantly and reach
out to their peers and the wider public for support. According
to Dr Osili, Gen X and Gen Y philanthropists are successfully
“using technology as a tool to connect with people” and to
create “virtual communities” of charitable givers.
Dr Moody agrees, explaining that Gen X and Gen Y
philanthropists are “not just about delivering time, talent
and treasure, but also their social network or ties. They are
sharing their extended social network as a valuable resource
to a charity they care about.” Yet young givers don’t hide
behind a screen—they show up and get things done in person.
According to Dr Moody, the younger generation of
philanthropists is uniquely hands-on compared with the
less engaged style of older generations. “They want to be
engaged in an organisation in a meaningful way, rolling up
their sleeves, sitting down and solving problems,” he says.
And they’re reluctant to make a commitment to charitable
giving unless they have the time to involve themselves fully.
Sharna Goldseker, executive director of 21/64, a non-profit
philanthropic consultancy, says she hears young givers
remark frequently about their available “bandwidth” for
taking on charitable activities. “They commit on so many
different levels,” she says.
Seeking results
“Gen X and Y are all about impact,” says Ms Rosqueta,
whose staff largely focuses on how individuals can achieve
the most significant results in the areas where they want to
concentrate their giving. “Because of their focus on impact,”
Ms Rosqueta notes, “young philanthropists are seeing
opportunities everywhere.” They might get behind a company
and buy its products if it’s the right fit with their view of the
world, she explains, or use investment capital to invest in
a company focused on social issues. “They are using their
money in many different ways to pursue their philanthropic
goals—not just providing a grant to a non-profit,” she says.
This desire to see a practical, tangible result means the young
generation of givers is focused on data, measurement and
demonstrable results. More than any other generation, they
want to check facts, know all the information ahead of time
and ensure that they are well-informed at every stage of the
process. “The older generation displayed institutional trust,”
says Ms Laramore. “But the young philanthropist believes in
strategic trust: ‘I will trust you based on what I see.’ They are
definitely looking for demonstrated impact.”
In many respects, young givers are breaking down
preconceived notions of philanthropy. “We tend to think of
a philanthropist as someone who is older, dies and leaves
money behind,” says Ms Laramore. “But philanthropy literally
means ‘love of human kind’. It’s important to understand that
generosity is everywhere, and we are all capable of giving.
Young givers are living that.”
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A wealth of vehicles
Perhaps the most obvious choice philanthropists face is which causes to support—but choosing the right method of
giving can be just as important. Now, more than ever, donors can use a variety of philanthropic vehicles to support
giving, including private foundations, donor-advised funds, giving circles and many others.
The below graph draws from a survey of 310 Gen X and Gen Y philanthropists conducted by the Johnson Center for
Philanthropy and 24/7 for their 2013 “Next gen donors” report. It shows the relative popularity of different vehicles
among these younger donors—and also how their methods compare with the vehicles their families use.
Personal and family use of philanthropic vehicles
(by percentage of respondents)
CHECK
84.8%
58.1
CASH
32.6
57.4
23.9
DONOR-ADVISED FUND
WORKPLACE GIVING
10.3
GIVING CIRCLE/POOLED FUND
60
17.1
14.8
4.8
11.6
PRIVATE FOUNDATION
53.5
6.5
11
BEQUEST
5.2
CORPORATE GIVING — FAMILY BUSINESS
2.9
GIFT ANNUITY
0.6
CHARITABLE REMAINDER TRUST
CHARITABLE LEAD TRUST
0.6
OTHER
1.9
21.6
8.7
Personal
Family (as reported by respondents)
11
7.7
7.4
0
20
40
60
Source: “Next gen donors”, the Johnson Center for Philanthropy and 24/7
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80
100
September 2014
Portraits of young philanthropists:
Idealistic entrepreneurs
A
mong the categories of Gen X and Gen Y
philanthropists, business entrepreneurs—tech
entrepreneurs in particular—stand out for their
boldness and expertise in innovation and formulating
new charitable models. In addition to making their mark
on business, they are transforming the methodology of
charitable giving. “The causes they give to are not all that
different. . . . It’s the how they give that is different,” says Dr
Michael Moody, Frey Foundation chair at the Johnson Center
for Philanthropy in Grand Rapids, Michigan.
Tech-led entrepreneurial giving
According to a list compiled by the Chronicle of Philanthropy
in February 2014, 3 of the 20 biggest charitable givers in
the country last year arose—not surprisingly—from the
tech industry. All three belong to Gen X and Gen Y: Mark
Zuckerberg, the co-founder of Facebook, and his wife,
Priscilla Chan, topped the list as the most generous givers of
2013; the two other tech entrepreneurs in the top 20 were
eBay co-founder Pierre Omidyar and Google co-founder
Sergey Brin (along with their respective wives). In fact, most
young philanthropist-entrepreneurs have emerged from this
landscape, particularly Silicon Valley. They share a common
worldview that things can be done better, and, armed with
drive and self-confidence, they have their sights on improving
the practice of philanthropy.
Perhaps not surprisingly, in view of their entrepreneurial
roots, this group is more skeptical of large organisations
and prefers smaller, differentiated outfits and start-ups that
may be more nimble and better able to respond to focused
challenges. “When eBay founders, Omidyar and [Jeffrey]
Skoll got the chance to be philanthropists, they were ultraentrepreneurial,” says Dr Moody. “They started foundations,
but they also started film companies, investment vehicles
and media companies. They’ve really blurred the boundaries
between philanthropy and business.”
Taking risks for a cause
Betting everything on a new idea or technology also gives many
young entrepreneurs a personal, direct understanding of risk.
So, when it comes to charitable giving, they are prepared to
continue assuming more risk—whether by backing an untested
idea, rolling out a local initiative nationwide or dramatically
scaling up an existing programme. Sharna Goldseker, executive
director of 21/64, a non-profit philanthropic consultancy,
believes a willingness to take chances, in particular, is where
Gen Xers excel. “Bold ideas are coming from Gen X. They respect
their parents, but they want to solve problems, not just lead
organisations. They’ve learnt to be resourceful, and they want to
take on important new issues.”
One high-profile example of risk-taking by a Gen Y
philanthropist is Mark Zuckerberg’s 2010 gift of $100m to the
troubled public school system of Newark, New Jersey. The gift
came with the condition that control over the school district
would partly revert from the state government, which had
controlled Newark’s schools for 15 years, back to the local
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Newark leadership. Besides showcasing Mr Zuckerberg’s
willingness to fund ambitious initiatives, the gift exemplifies
a new kind of “disruptive” model for philanthropy that seeks
to forge new directions for established organisations.
According to Katherina Rosqueta, founding executive director
of the University of Pennsylvania’s Center for High Impact
Philanthropy and a member of the faculty of the School of
Social Policy & Practice, this confidence in their ability to
improve outcomes is a hallmark of young entrepreneurs—tied
to their embrace of disruptive innovation in the business
sphere. Ultimately, these twin qualities of risk-taking and
outsize self-assurance may be natural consequences of how
entrepreneurs made their fortunes in the first place. “There is a
comfort with risk that may not be there if you’ve inherited your
wealth,” says Ms Rosqueta. “There’s a real sense that ‘this is
mine, I made it, and I can take the full chance with it’.”
Innovative giving models
Entrepreneurs are also creating new vehicles for giving in
response to experiences with larger organisations that may
use more traditional approaches and are less quick to react
or change. One such vehicle is the “one-to-one” platform of
giving made possible by the Internet. In these cases, donors
are matched directly with an individual or cause needing
funds. Kiva, an online micro-lending platform founded in
2005 by Gen Xers Matt Flannery and Jessica Jackley, is one
illustration; through the platform, a schoolteacher in Africa
who desperately needs supplies for her classroom can be
given funds directly.
Another important trend, if not outright innovation, is the
blurring of boundaries between non-profit and for-profit
charitable vehicles. While profit motives may make some
more traditional philanthropists wince, young entrepreneurs
have proven more comfortable with giving to for-profit
companies that are directly engaged in making the world
better. Empowering women in the developing world, for
instance, can be achieved by non-profit organisations but
also by enlightened corporations that provide fair wages and
good working conditions. For entrepreneurial givers, it’s all
about what really works.
power couples in 21st-century philanthropy.
To further their ambitious mission to save and
improve lives around the globe, Mr Moskovitz
and Ms Tuna founded Good Ventures in
2011 as the main outlet for their charitable
giving. Shortly thereafter, the couple signed
the Giving Pledge, at the invitation of Bill
and Melinda Gates and Warren Buffett,
committing them to giving away most of their
wealth and ensuring that they’d keep busy
with their charitable endeavours.
Dustin Moskovitz and Cari Tuna
Ages: 30 & 29
Grants awarded since December
2011: More than $15m
Focus: Healthcare, poverty in developing
countries, other areas
Goal: To donate the majority of their wealth,
estimated at $7bn
As a co-founder of social media giant
Facebook, Dustin Moskovitz achieved
phenomenal wealth in his early 20s. Not
long after, he decided to give much of it
away. In doing so, he and his wife, Cari
Tuna, a former journalist with The Wall Street
Journal, have become one of the premier
The couple explains: “The question that
guides our work is, ‘How can we do the most
good with the resources at our disposal?’
That means asking ourselves questions like,
‘Can we do more good by funding scientific
research or policy advocacy? How do giving
opportunities in those areas compare with
opportunities in foreign aid or mitigating
potentially catastrophic risks to humanity’s
future?’ These questions don’t have
straightforward answers, of course, but we’re
using them to help chart our course.”
A focus on transparency and informationsharing distinguishes the couple’s unique
approach to giving. As they research causes,
they are publishing everything they find on
their foundation’s website. “Sharing what
we’re learning, with detail and honesty,
is really important to us,” they say. “We
see transparency as a way to magnify our
impact. If we make what we’ve learned
available to others, and vice versa, the
field of philanthropy will be able to iterate
much faster with less duplication of effort.
Transparency is also a way to invite feedback
on our process and conclusions.”
And as for their scope, both Mr Moskovitz
and Ms Tuna strive to enhance and deepen
the personal connections in an increasingly
globalised world. “The world is our
community,” they say. “We are both focused
on how to help the most people globally,
whereas while we were growing up, our
parents tended to focus on caring for family
and people in their local communities.” But
they add that both their parents recently have
become more active in giving globally—just
one of the noticeable effects the younger
generation of givers is having on others, even
within their own families.
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Portraits of young philanthropists:
Philanthropic financiers
S
ince the days of the Rothschilds and J. P. Morgan,
successful bankers and financiers have been
instrumental in shaping the world of philanthropy.
Even in more recent times, hedge fund manager Paul
Tudor Jones famously created the Robin Hood Foundation, a
trailblazing non-profit organisation that fights poverty in New
York City and pioneered the market-based, metrics-focused
approach known as “venture philanthropy”. Equally notable
examples of philanthropists from the world of hedge funds
include George Soros, founder of Soros Fund Management,
and Louis Bacon, founder of Moore Capital Management.
As influential as this established group of professionals has
already been, a new generation of financiers is emerging as
leaders in charitable giving. These newcomers are uniting
their passion for investing with an intense desire to transform
the world for the better—the results have been nothing
less than dramatic. This is true in large part because “their
information and social networks are unprecedented”, explains
Carra Cote-Ackah, a director of partnerships and strategic
initiatives at the University of Pennsylvania’s Center for
High Impact Philanthropy. “They can reach out for relevant
information, conduct due diligence, activate their network
and, once they have all the information, make decisions
incredibly quickly.”
A no-nonsense, East Coast approach
Like their older cohorts, the next generation of philanthropic
financiers has strong ties to Manhattan and Wall Street, often
comprising investment managers at alternative investment
vehicles, such as hedge funds and private equity firms. And,
like the Baby Boomer financiers that popularised venture
philanthropy, Generation X and Generation Y financiers are
introducing innovative and groundbreaking models of their
own, such as “giving cooperatives”, in which like-minded
philanthropists pool their money, know-how and contacts to
maximise the results of their involvement.
Examples of these cooperatives include Hedge Funds Care,
founded in 1998 to target poverty and child abuse, the
Tiger Foundation, founded in 1989 as a cooperative of
investment managers at Tiger Management, and 100 Women
in Hedge Funds, an organisation of 10,000 male and female
members dedicated to networking and giving back. According
to “Contributing to Communities”, a 2013 report by the
Alternative Investment Management Association (AIMA),
these three organisations—together with the Robin Hood
Foundation—contributed more than $170m to philanthropic
causes in 2010.
Although these funds make a sizeable impact, these young
philanthropists often donate their time and talents as well.
The advent of the information age has certainly made it
easier for financiers to leverage their professional networks
and help guide charities’ investment strategies. According
to Dr Una Osili, director of research at Indiana University’s
Lilly Family School of Philanthropy, giving circles and other
giving networks have allowed young philanthropists “to build
community for a particular cause, not just to give financially
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but also for volunteering and advocacy”. At the same time,
innovations in social networking have transformed the ability
to measure results, monitor accountability and help donors
decide where their time, skills and money are most needed.
“Technology has dramatically reduced the cost of information
and getting connected to new causes,” says Dr Osili.
The ROI of giving
Data, numbers, research and analysis are prized by this
group of young charitable givers. These philanthropists
are accustomed to measuring performance results with
hard facts and figures—this carries over to their charitable
contributions. “What I’ve noticed with young financiers,” says
Sharna Goldseker, executive director of 21/64, a non-profit
philanthropic consultancy, “is that they may take a long time
collecting the data, but then, once they have it, they are
quick to make a decision.”
Not surprisingly, young philanthropists from the world of
finance expect to see tangible results from their charitable
giving and often request regular updates and briefings.
Most important, they approach giving just as they do
their financial work, by asking what type of return they’ll
receive on their investment. According to AIMA’s research,
maximising outcomes based on dollars spent is a paramount
consideration for philanthropic hedge-funders.
The full human equation
In addition to shoring up financial capital, young
philanthropists from the financial sector often focus their
charity on strengthening human capital in the long term—
especially through improving education. Ken Griffin, 45,
founder of Citadel, a Chicago-based hedge fund, has been an
especially generous donor to educational causes based on his
belief that the future of the United States depends on public
education. He has helped open new charter schools and early
childhood learning centres, as well as children’s hospitals.
He also donated the single biggest alumni gift ($150m) to
Harvard for undergraduate need-based financial aid.
While improving education close to home is an understandably popular way to expand the long-term potential
of the disadvantaged, young financiers are by no means
parochial in their philanthropy. The AIMA report found,
for instance, that “many philanthropic initiatives from the
hedge fund industry concentrate their funding on the
developing world, particularly Africa”. In addition, the report
highlights hedge fund managers’ efforts to contribute to the
development of the healthcare sector by supporting improved
global medical training and treatment initiatives.
Some of the latest initiatives coming from this young group
of philanthropists include A Leg to Stand On, founded by
C. Mead Welles, 46, founder of Octagon Assset Management,
and the High Water Women Foundation, founded by
women in the hedge fund industry. The former provides
prostheses, physical therapy and corrective surgery for
people with physical disabilities in Africa and Asia; the latter
offers mentoring, financial education and computer skills
development to women and young people in need.
Both cases epitomise the great diversity of young financiers’
charitable efforts as well as the forward-looking nature of
their generosity. For young financiers, improving quality
of life isn’t just an end in itself but an important means of
ensuring sustained progress in the future.
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John and Laura Arnold
Ages: 39 & 40
Giving level (2013): $296.2m
Focus: Education, health and criminal justice
Goal: Public policy reform
John Arnold is used to taking the lead. He
quickly became one of the most admired
energy traders in the world after founding
the hedge fund Centaurus in 2002. Five
years later, he became the youngest
billionaire on the Forbes 400 Richest
Americans list. And, since retiring at the age
of 38 in 2012, Mr Arnold, together with his
wife, Laura, a former corporate lawyer and
businesswoman, has worked on making just
as significant an impact in philanthropy as
he did in the financial world.
The Arnolds say it had always been their
plan to make this transition to philanthropy.
“We were both raised in middle-class
households and attended public secondary
schools,” they explain. “Our parents
did not have the financial resources to
give charitably on a large scale, but they
instilled in us an appreciation for the
opportunities we had and an understanding
of the importance of making a difference
whenever and however possible.”
As part of their philanthropic work, the
Arnolds focus on building human capital
and promoting policy reform in three main
areas: criminal justice, education and
public accountability. The couple believes
that their work differs from conventional
philanthropy in that it targets the nation’s
biggest problems and tries to promote
sustainable reforms by seeking wholesale
policy changes to improve the quality
of outcomes. The Arnolds explain their
approach as “identifying endemic societal
problems, collaborating with experts in
the field to evaluate potential solutions,
rigorously testing hypotheses to arrive
at the best answer and, finally, seeking
to implement those alternatives at scale
through policy reforms”.
While the Arnolds take a long-term,
directed and disciplined approach to
philanthropy, they are also responsive
in times of crisis. During the federal
government shutdown in 2013, the Arnolds
helped maintain the Head Start programme
that provides meals, medical screenings
and preschool for nearly a million children
from low-income families through their
charitable donations. And, although their
private foundation, the Laura and John
Arnold Foundation, may be the couple’s
largest outlet for their charitable activity,
the Chronicle of Philanthropy reports that
the Arnolds have also given generously to
their donor-advised fund for donating to
causes such as Baylor College of Medicine.
Whether thinking big over the long term or
reacting quickly to immediate challenges,
the Arnolds have proved their capacity and
eagerness to be among the most influential
philanthropists of their time.
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Portraits of young philanthropists:
Engaged heirs
Y
oung heirs and heiresses are a unique subset of
society, and this distinction holds true for their roles
as philanthropists as well. These young heirs are
steeped in their family’s tradition of giving from an
early age, and yet they form part of a new generation with
fresh ideas about charitable giving.
According to the 2012 Bank of America study of high-networth philanthropy conducted by Indiana University’s Lilly
Family School of Philanthropy, 41% of high-net-worth
households have family traditions around giving, with
33% involving younger relatives in charitable practices.
“Inheritors have a dual challenge,” notes Dr Michael Moody,
Frey Foundation chair at the Johnson Center for Philanthropy
in Grand Rapids, Michigan. ”They face the difficult task
of navigating how to respect the family legacy of giving,
while also experimenting with new approaches to make
philanthropy better.”
The idea of the frivolous, pleasure-seeking socialite made
popular by magazines and gossip journalists bears little
resemblance to most philanthropic heirs. “The image of the
privileged rich kid is inaccurate when describing these young
philanthropists,” claims Sharna Goldseker, executive director
of 21/64, a non-profit philanthropic consultancy that works
closely with young heirs to develop their own philanthropic
identity. “They are responsible, earnest and want to make a
meaningful difference.”
Mixing business, pleasure and giving
More than any other group of young philanthropists,
heirs balance multiple duties and roles at once: work,
giving, community involvement, family and friends. Emma
Bloomberg, elder daughter of the former New York City mayor
and billionaire Michael Bloomberg, is a senior planner at
the Robin Hood Foundation, a respected charity that battles
poverty in New York. She is also on the boards of Stand
for Children, a national grass-roots advocacy organisation
focused on education reform, and Young Lions of the New
York Public Library, a group of library benefactors in their 20s
and 30s.
Like Ms Bloomberg, young heirs often take active roles in
philanthropy alongside comparably active parents. According
to “Next gen donors”, a 2013 report by the Johnson Center
and 21/64, 70% of Gen X and Gen Y donors with a family
foundation already sit on the board of that foundation.
According to Dr Una Osili, director of research at Indiana
University’s Lilly Family School of Philanthropy, many
family foundations are seeking to learn about the different
giving styles and approaches of the emerging generations.
“Foundations that have the flexibility to balance the mission
of the foundation with the different preferences of family
members, whether it’s geographic dispersion or generational
divide, are able to create a more meaningful experience for
family members at different points in their life cycle,” she says.
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Like their Gen X and Gen Y counterparts in business, young
heirs are more actively engaged in charity and concerned
about its real impact. Dr Osili cites data from the 2012
Bank of America study that shows a rise of high-net-worth
philanthropists who volunteer more than 200 hours a year.
Indeed, many young heirs make a career of philanthropy,
blending it with the other facets of their lives.
Yet even heirs who don’t embrace philanthropy as a career
may wear their philanthropic work as a badge of honour. For
example, Dylan Lauren, daughter of clothes designer Ralph
Lauren and founder of the successful sweets chain Dylan’s
Candy Store, actively supports animal rights charities, such as
the ASPCA, and has hosted benefits for that organisation at
her flagship Manhattan boutique.
Continuing a family tradition
Heirs to family fortunes—especially fortunes passed down
through many generations—tend to be keenly aware of the
legacy that they are entrusted to preserve. “Entrepreneurs
are thinking about their own legacy for the first time, while
third—or fourth—generation family members are thinking
about their family’s legacy,” says Carra Cote-Ackah, a director
of partnerships and strategic initiatives at the University
of Pennsylvania’s Center for High Impact Philanthropy. As
a result, they must grapple with how to continue building
on their family’s tradition of giving, while putting their own
stamp on a new era.
The need to remain true to the original vision of the founding
family member may represent a constraint for Gen X and
Gen Y heirs, yet they still seek novel approaches to giving
that focus less on personal recognition and more on
empowering change. “Many inheritors continue to support
legacy gifts, but they do so in a new way,” says Dr Moody,
adding that heirs are willing to look beyond the status that
comes with a seat on the board if they can make more of a
difference by getting their hands dirty.
Making their mark
As for making an impact, heirs are putting their own mark
on philanthropy. Many are broadening the scope of their
traditional focus, expanding their sights globally and
promoting social change through nontraditional vehicles.
The Wilson Family Foundation, a charitable organisation
created by the founders of Xerox, embodies this new
approach. Based in Rochester, New York, the foundation
traditionally focused on Rochester and the local community,
but the younger generations managing the family foundation
today grew up all over the US. While Rochester remains home
base, they have sought new ways to address issues they
were seeing first-hand in communities around the country.
They began backing national causes in addition to the
foundation’s traditional local charities. The foundation now
works to eliminate homelessness on a national level through
assistance programmes.
The Nathan Cummings Foundation, a $400m endowment that
aims to change corporate behaviour through shareholder
activism, is another example of how traditional family giving
is transforming to fit today’s changing needs and culture.
Board members have altered the way the foundation invests,
leveraging their position as shareholder to promote social
change—the foundation reports having introduced more than
180 shareholder resolutions to address topics such as climate
change, sustainability reporting and healthcare reform. The
Cummings family proves that foundations can do more than
give directly to charity; they can use their assets to encourage
corporate America to maximise profits, while pursuing issues
of social justice, the environment and sustainability. Using all
the tools at their disposal—investment capital, social capital
and established philanthropic know-how—young heirs are
using old money in new, creative ways.
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Alexis Feldman
Age: 32
Hours volunteered in 2013: More than 250
Focus: Cancer research and Jewish causes
Goal: To make an impact and give back to
her community
In Alexis Feldman’s early 20s, donating money here and there to
various charities was about the full extent of her philanthropic
activity. But now, Ms Feldman, who works for her family’s business,
New York-based Feldman Realty Group, is busier than ever as chair
of the Cancer Research Institute’s Young Philanthropists Council,
which she founded in 2008. She also helps run her two family
charitable foundations, the Milton and Sylvia Feldman Foundation
and the Seymour Feldman Foundation, both of which focus on
health-related issues and Jewish causes.
So what precisely happened to spur her engagement in the
philanthropic world? In the summer of 2008, Ms Feldman
accompanied her father to meet Dr Jill O’Donnell-Tormey, CEO
and director of scientific affairs at the Cancer Research Institute.
Ms Feldman, who has lost three of her grandparents to cancer,
expected to be interested in the discussion—but she never
expected to get hooked. “Back in 2008, unless you were in the
cancer research world, you probably had never heard the term
‘immunotherapy’,” she recalls, referring to a type of cancer
treatment centred on the body’s own natural defences against
disease. “I certainly had not, and neither had my father. We were
both intrigued and impressed with CRI’s mission and the passion
Jill had.”
That fall, Ms Feldman was asked to create the Young Philanthropists
Council, a junior board for the Cancer Research Institute. “This was
my opportunity to take an active role in philanthropy, and I jumped
at it,” she explains. Today, she continues to chair the Young
Philanthropists Council, a personally rewarding role—and one that
takes a lot of time and energy.
When Ms Feldman reflects on her family’s involvement in
philanthropy, she is struck by how similar she is to her parents and
grandparents. “We all agree it is important to give back in any way,
big or small,” she says. “And we are all driven to donate to causes
in the cancer and the medical world and to Jewish organisations.”
Where they differ though, she says, is that while her parents
give more money, she is more involved behind the scenes. And
that just might make Ms Feldman the quintessential next-gen
philanthropist: heavily influenced by previous generations of
givers and yet stylistically distinct from them, as well.
September 2014
Whilst every effort has been taken to verify the accuracy of this
information, neither The Economist Intelligence Unit Ltd. nor the
sponsor of this report can accept any responsibility or liability
for reliance by any person on this white paper or any of the
information, opinions or conclusions set out in the white paper.
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