While a majority of private foundations seek to involve the next generation (NextGen) in philanthropic activities, many cite engaging a younger demographic as their biggest challenge ahead, a survey from Foundation Source finds.

Based on responses from 225 private non-operating foundations with assets between $250,000 and $500 million, the 2024 Client Survey found that 62 percent of respondents plan to involve NextGen in charitable activities in 2024, but 35 percent expect difficulty in engaging younger family members. Other anticipated challenges include measuring impact (29 percent), creating bigger impact (27 percent), devoting sufficient time to foundation matters (26 percent), and prioritizing granting opportunities (26 percent).

According to the survey, respondents indicated they expect to seek new grantee partners (30 percent), collaborate with other funders (24 percent), as well as respond quickly to disasters and emergencies (18 percent). Approximately 44 percent of respondents anticipated giving more money to charitable causes in 2024 than they did in 2023, with 31 percent also planning to support more grantees, 27 percent planning to increase the size of individual grants, and 29 percent planning to increase the total number of grants they distribute.

Of those surveyed, 16 percent are considering changes to their endowments in response to the markets and economy, with anticipated changes including adding funds to their endowments (22 percent), increasing alternative allocations (8 percent), exploring impact investing (8 percent), and increasing equity allocation (7 percent).

“The next generation will inherit more wealth than past generations and their commitment to social change and desire to live a life of purpose have great implications for the future of philanthropy,” said Foundation Source CEO Joseph Mrak III. “It’s an unmissable opportunity for service providers and advisors in the charitable landscape to connect with emerging leaders and deliver high-quality tools, education, and expertise to help facilitate their giving and amplify their impact.”

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