The largest generational wealth transfer in history is underway. According to Cerulli Associates, an estimated $124 trillion will change hands by 2048, with more than half flowing from high-net-worth and ultra-high-net-worth households. Gen X, Millennials, and Gen Z are poised to inherit the lion’s share, and this shift is influencing not just how wealth is inherited but how it is stewarded. Emerging wealth holders increasingly view their financial resources as a means to drive social good, reflect personal values, and make measurable community impact.

At The Dallas Foundation, we work with professional advisors and next-generation philanthropists to bring these aspirations into focus and action. Our deep knowledge of the Dallas nonprofit landscape — which organizations are doing the most effective work, which causes are most urgent locally — gives advisors a credible, trusted resource to direct clients toward, rather than leaving them to navigate philanthropy on their own. Our experience shows that advisors who integrate philanthropic strategy with financial planning deepen client trust and strengthen long-term relationships.

A Values-Driven Generation

Next-generation wealth holders are more likely than prior generations to see philanthropy and impact investing as essential parts of their financial philosophy. According to Campden Wealth’s Next Generation of Wealth Holders in the United States report, 82% of next-gen wealth holders are already active in philanthropy, with 74% motivated by a sense of duty to give back. This group is highly engaged in giving and impact activities, with many already directing resources toward causes that resonate with their values.

This pattern reflects a broader shift from passive or legacy-only giving toward active engagement and measurable impact. Next-gen investors prioritize causes with personal meaning, including education, youth development, and local community initiatives. According to the 2024 Bank of America Private Bank Study of Wealthy Americans, younger donors are nearly twice as likely as older donors to support homelessness, social justice, and environmental causes. Cause priorities are shifting, not just giving methods.

What Next-Gen Clients Expect from Their Advisors

Research shows that younger investors are actively seeking guidance from their advisors when it comes to charitable goals. In fact, 59% of Gen Y and Z investors want or expect their primary advisor to provide services that go beyond financial advice and investment management, compared to just 25% of Baby Boomers, according to Fidelity Charitable.

The implication is clear: next-gen clients who don’t find this support may simply find a different advisor. Advisors who lead with purpose and philanthropy in their prospecting conversations, not just their ongoing client reviews, are better positioned to capture and retain the wealth that is moving.

These clients also want their giving to produce results they can see. Campden Wealth found that 46% of next-gen philanthropists struggle to measure the impact of their giving, and 41% find it difficult to identify good causes to support. This is where The Dallas Foundation’s local expertise becomes a genuine differentiator: rather than leaving clients to navigate philanthropy on their own, advisors can draw on our knowledge of the Dallas nonprofit landscape to connect clients with vetted organizations doing effective work.

The Philanthropy Disconnect Across Generations

One of the most underappreciated risks in multi-generational wealth planning is how differently parents and their adult children view their philanthropic alignment. The 2024 Bank of America study found that only 20% of younger wealthy people say they take the same approach to philanthropy as their parents, while 67% of older wealthy people believe their children share their approach. That gap, left unaddressed, can create real tension during wealth transitions.

Advisors who recognize this disconnect can play a meaningful role in surfacing and resolving it — not by choosing sides, but by facilitating structured conversations that help families articulate shared values and compatible (if distinct) philanthropic goals. Succession planning works best when it addresses values alongside assets, and The Dallas Foundation can support advisors in offering guided discussions and opportunities for younger family members, like Rising GENerosity, to develop their own philanthropic identities within a framework that honors broader family legacy.

Giving Vehicles That Fit How Next-Gen Donors Think

Next-gen donors increasingly look for giving vehicles that combine strategic impact with flexibility and ease of use. When evaluating options for clients, advisors should be familiar with the full range of vehicles and what each is best suited for:

• Donor-advised funds (DAFs) remain a cornerstone, offering flexibility in timing, grantmaking, and administration, while enabling donors to track and measure the results of their giving. Unlike national DAF platforms, working through The Dallas Foundation means clients receive personalized guidance and recommendations grounded in local knowledge of the nonprofit landscape.
• Designated funds allow donors to support specific organizations over time, ensuring sustained impact for causes they care about.
• Field-of-interest funds provide focus on a cause or issue area without requiring donors to select individual organizations, giving both direction and flexibility — useful for clients who know what they care about but want expert guidance on who to fund.
• Endowments offer lasting legacy and community impact, providing a permanent source of support that sustains organizations or initiatives long after a donor’s lifetime.

Charitable trusts and direct, one-off giving tend to be less appealing to next-gen donors — trusts require ongoing compliance, while unstructured direct gifts can lack measurable outcomes. DAFs, designated funds, field-of-interest funds, and endowments generally offer a better combination of flexibility, impact, and accountability for this generation.

It’s also worth noting that many next-gen clients will inherit or hold illiquid assets — real estate, business interests, or private equity. The Dallas Foundation is experienced in working with advisors to think through complex or diverse asset portfolios, making it easier for clients to give in ways that align with their full financial picture, not just their liquid holdings.

What Advisors Can Do

The advisors best positioned to serve next-gen wealth holders are those who treat philanthropy as a planning priority, not an afterthought. In practice, this means introducing values and community conversations early in the client relationship, facilitating multi-generational dialogue before tensions arise, and connecting clients with giving vehicles that offer both flexibility and impact measurement.

It also means not waiting for the inheritance. Campden Wealth found that next-gen donors are already giving an average of $1.2 million of their own wealth annually. The wealth transfer amplifies existing giving intentions — it doesn’t create them.

The Dallas Foundation is a resource for advisors at every stage of this work: from helping clients identify causes and organizations aligned with their values, to supporting family legacy conversations, to providing insights to help the next generation understand the impact of their philanthropy. Our goal is to make it easier for advisors to deliver on the full scope of what this generation is looking for — a trusted partner who understands both their financial lives and the community they want to shape.