The Next Generation of Giving: What Charities Need to Understand

As charities look toward the future, one question keeps surfacing: How will the next generation give?

For decades, fundraising strategies were built around Baby Boomers and older generations whose giving habits were relatively predictable. But Millennials, Gen Z, and even Gen Alpha are reshaping what generosity looks like — and charities are working to understand what motivates them.

In a recent conversation, tax and wealth expert Tim Cestnick shared insights into how younger generations are approaching philanthropy differently from their parents, and why charities need to evolve alongside them.

Giving Is Still Important — But It Looks Different

One of the biggest misconceptions about younger generations is that they care less about giving back. According to Cestnick, that’s simply not true.

What is changing is the way younger people define impact, balance, and responsibility.

Many younger Canadians are navigating a world that feels more financially uncertain than the one their parents inherited. Rising housing costs, inflation, and economic pressures have changed how they think about money, family, and long-term planning.

Some are even questioning whether they can afford to have children at all.

That reality naturally influences charitable giving. Younger donors may not always give in the same ways or at the same levels as previous generations — but they are still deeply motivated by causes they believe in.

Values Are Becoming More Personal

Cestnick noted that even within families that share similar core beliefs, younger generations often prioritize different causes than their parents.

While older donors may focus on traditional institutions or legacy organizations, younger donors are frequently drawn toward issues such as:

• Environmental sustainability
• Social justice initiatives
• Community impact
• Ethical investing
• Mental health awareness
• Equity and inclusion

For charities, this shift matters. Younger supporters are often looking for organizations that align closely with their personal values and worldview.

That means fundraising can no longer rely solely on legacy relationships or institutional reputation. Organizations must clearly communicate why their work matters and how it creates measurable impact.

The Importance of Family Conversations Around Giving

Another theme that emerged in the discussion was the role families play in shaping generosity.

Some families, Cestnick explained, do an excellent job of teaching children why giving matters and how philanthropy can become part of a meaningful life. Others avoid those conversations entirely.

When younger generations are included in charitable decisions early, they are more likely to develop their own sense of purpose around giving.

This can also create opportunities for charities to engage entire families rather than focusing only on one generation of donors.

Younger Donors Want Balance and Impact

Interestingly, Cestnick believes younger generations may actually have a healthier perspective on balance than previous generations.

Many want successful careers and financial security — but they also want lives that include purpose, generosity, and social responsibility.

That mindset extends beyond charitable donations. It is also influencing how younger people invest their money. Increasingly, they are interested in investments that create positive social or environmental outcomes alongside financial returns.

In other words, giving is becoming more integrated into lifestyle choices overall.

What Charities Should Take Away

There may not be one “silver bullet” strategy for engaging Millennials, Gen Z, or Gen Alpha. But there are several clear lessons emerging:

• Younger generations still care deeply about giving
• They expect authenticity and transparency
• They want to support causes aligned with their values
• They are motivated by measurable impact
• They often approach generosity differently than their parents

For charities, the challenge is not convincing younger generations to care. The challenge is understanding what they care about and creating meaningful ways for them to engage.

The future of philanthropy is still generous — it’s just evolving.