Opinion: Young Rich Love to Give but Not to ‘Big Charity’

The children of ultra-high net-worth families are embracing philanthropy but in a much different manner than their parents, a circumstance that could spell trouble for large, traditional charities, according to a Forbes contributor.

Phil DeMuth, who writes about investment issues for the superrich, cites research by Mindy Rosenthal of the Institute for Private Investors on the giving habits of wealthy parents’ millennial-generation children. Nearly half of those she interviewed are philanthropically active, but they gravitate toward “hands-on niche projects,” notably in education and the environment, where they can see demonstrable results, Mr. DeMuth says.

“While their parents were happy to write elephantine checks to the ‘American Big Disease Association’ or the ‘Big City Cultural Institution’ or ‘Ye Olde Ivy College Foundation’ or the ‘Mainline Church Denomination,’ the kids … have little interest in outfits like these,” he writes.

Read a Chronicle of Philanthropy column on what donors in the 20s and 30s look for in giving.