Despite Economy, Gen X Still Generous Givers

Suzanna De Baca -- Expert Business Source, 9/9/2008 9:43:00 AM

Even while many Americans are cutting back on discretionary expenses and tightening budgets, one segment of the population is maintaining its generous giving habits:  Generation X.  It turns out that the slackers who embraced grunge have grown up to be good citizens – even more dedicated to global philanthropy than their idealistic Boomer parents.

According to Northern Trust’s third annual Wealth in America survey, affluent individuals who were born between the mid-1960s and the mid-1980s give more to philanthropic causes than Baby Boomer and even Senior, “Greatest Generation” counterparts. 

The Northern Trust study revealed that on average, Generation X millionaire households gave nearly $20,000 in 2005, double the national average for Boomers and Seniors.  In addition, the survey respondents indicated that their planned to continue giving at the same rate or that they plan to increase their philanthropic donations in 2008.  In contrast, Boomers and Seniors reported that they planned to hold their giving levels steady with previous years’.

Generation Xers reported different philanthropic goals than their predecessors, including a desire to leave a family legacy.  In addition, they indicated a stronger global philanthropic view.  They also like to give during their lifetimes and are more involved in organizations on a hands-on basis than Boomers or Seniors.  The Northern Trust report indicated that 80 percent of Gen X millionaires did “at least some volunteer work in 2007.”

For non-profits and other charitable organizations struggling to maintain their budgets in a weak economy, that is good news.

Suzanna de Baca is president of Private Capital Solutions Group. Securities offered through Broker Dealer Financial Services Corp. Member FINRA & SIPC. Investment Advisor Representative of Investment Advisors Corp., A Registered Investment Advisor. Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal or investment advice. Although the information has been gathered from sources believed reliable, please note that individual situations can vary, therefore the information should be relied upon when coordinated with individual professional advice.