Millennials and Gen Xers are facing down one of the greatest transfers of wealth in history—with some $124 trillion expected to change hands by 2048. But as wealth inequities simultaneously reach new extremes, the transfer has amplified questions about whether wealthy families are moving fast in their promises of impactful giving.
According to a new report from the Milken Institute about the shifting dynamics of philanthropy, the tension is setting the stage for a “reckoning” in the sector as younger generations gain more influence over family checkbooks.
“Wealth inequalities have never been greater than they are right now, and we have this sharper eye on the wealthy,” said Melissa Stevens, the executive vice president of Milken Institute Strategic Philanthropy and report’s co-author. “It has raised the stakes.”
For decades, philanthropy has centered on legacy-building and long-term giving, and some of the world’s wealthiest families have already committed to giving away much of their fortunes through initiatives like the Giving Pledge, launched by Warren Buffett, Bill Gates, and Melinda French Gates in 2010. But as scrutiny over ultra wealth has intensified, many younger heirs have realized their family commitments haven’t always moved fast enough.
