The coming decades will see an unprecedented movement of private wealth from one generation to the next. Estimates suggest that around $124 trillion will be inherited by 2048, as reported by Fortune, creating one of the largest financial transitions in recent history. While much of the discussion has centred on family fortunes and succession planning, attention is increasingly turning towards what this change could mean for philanthropy. Wealth inequality has become a far more visible issue than it was a generation ago, and expectations surrounding charitable giving have changed alongside it. Younger heirs are entering conversations that once belonged almost entirely to their parents and grandparents, bringing different priorities and a greater willingness to question established practices. In many wealthy families, philanthropy is no longer simply about preserving a legacy. Rather than identifying primarily as donors, many see themselves as participants in broader efforts to support lasting social change.The shift is not limited to the timing of charitable giving. Younger philanthropists are also approaching their role differently from earlier generations.
How younger heirs are redefining philanthropy
The Milken Institute believes philanthropy is approaching a period of significant change as younger family members become more involved in decisions surrounding inherited wealth. Rather than accepting existing structures, many are questioning whether traditional models still keep pace and scale of today’s social and economic challenges.Melissa Stevens, executive vice president of Milken Institute Strategic Philanthropy and co-author of the report, said growing public attention on inequality has changed expectations surrounding wealthy families.“Wealth inequalities have never been greater than they are right now, and we have this sharper eye on the wealthy. It has raised the stakes.”The report suggests that pressure is coming from several directions. Public scrutiny of billionaire fortunes has increased in recent years, while younger generations are also examining whether family foundations and charitable commitments are moving quickly enough to address urgent issues.
Why younger heirs are urging faster charitable giving
For years, many of the world’s richest families have viewed philanthropy as a long-term responsibility, often planning charitable distributions over several decades. Initiatives such as the Giving Pledge encouraged billionaires to commit the majority of their wealth to charitable causes, although those commitments rarely came with fixed timelines.Inside some of those families, however, younger heirs are encouraging a different approach. Katherine Lorenz, who leads the Giving Pledge’s Next Gen group, said she has seen younger relatives encouraging older family members to begin distributing more of their wealth rather than delaying major donations.As reported by Fortune, “I see more younger generation folks pushing on their parents to give more,” Lorenz. “[They’re saying], ‘you made enough money, mom and dad, it’s time to give it away and to give it away faster.'”“Many of them are ready to deploy the capital faster. Sometimes the barrier is the older generation.”
Why trust-based philanthropy is gaining momentum
Lorenz believes many younger philanthropists are asking different questions before deciding where to direct their money. While immediate support remains important, there is growing interest in understanding the conditions that create social problems in the first place. Using housing as an example, she explained that helping people in immediate need is only one part of the challenge.“Why do we have so many unhoused people? What is happening, and how do we get fewer people in this situation?” Another area where attitudes are changing involves the relationship between donors and the organisations receiving funding. Rather than attaching detailed restrictions to grants, some philanthropists have begun providing unrestricted financial support, allowing recipient organisations to decide how funds should be used based on local priorities and experience.MacKenzie Scott has become one of the most prominent examples of that approach after distributing approximately $26 billion over the past six years through unrestricted gifts to a wide range of organisations, including historically Black colleges and universities, diversity initiatives and disaster relief groups.Stevens believes Scott’s approach has influenced wider discussions about philanthropy. “She is just an exemplar of trust-based philanthropy,” Stevens said. “[It’s] really leaning into that partnership with community in terms of learning from, listening to, and creating with those communities, rather than coming in with some predetermined solution.”
Women are expected to influence the future of giving
The transfer of wealth will also change who holds decision-making power within many of the world’s wealthiest families. According to projections cited in the Milken Institute report, women are expected to inherit around $47 trillion by 2048, representing roughly 56% of all inherited wealth worldwide.Stevens believes that transition could reinforce approaches already gaining momentum, with more philanthropists working alongside communities instead of directing projects from a distance. The emphasis, she suggested, is increasingly on listening first and developing solutions with local organisations rather than assuming donors already know the best course of action. Lorenz’s views on philanthropy are rooted in her own family’s history. She is the granddaughter of George Mitchell, the oil and property entrepreneur whose company, Mitchell Energy & Development Corp., reportedly appeared on the Fortune 1000 list before being acquired by Devon Energy Corp. for $3.1 billion in 2001.After graduating from Davidson College in North Carolina, Lorenz spent time in Nicaragua before living for around six years in Oaxaca, Mexico. During that period, she established a non-profit organisation serving rural Indigenous communities.Those years changed the way she thought about charitable work.
