Empowering young women in philanthropy to create lasting change

We are at the precipice of financial transformation called the Great Wealth Transfer, and women are poised to become significant beneficiaries of this economic windfall. According to a 2020 McKinsey report, “[b]y 2030, American women are expected to control much of the $30 trillion in financial assets that baby boomers will possess—a potential wealth transfer of such magnitude that it approaches the annual GDP of the United States.” 

Women have a unique opportunity to use their position to advance philanthropy and impact to tackle the pressing problems affecting human and planetary health. Significant giving by women is already under way. Who are the trailblazers making large and bold financial commitments from a trust-based and often gender-based lens? Melinda French Gates and MacKenzie Scott. It’s women. 

As founder of AtlasDaughters, director of the Marks Family Foundation, and mother to a daughter, I know firsthand the importance of educating and empowering young women in philanthropy to accelerate their giving to maximize impact.  

Why focus on young women in philanthropy? 

While the McKinsey report indicates that women in the United States control less than half of financial assets, younger affluent women are poised to increase that share as they close the gender gap in earnings and wealth. But what makes giving by women unique? 

According to a report from the Dorothy A. Johnson Center for Philanthropy and Colmena Consulting, in partnership with Philanthropy Together, collective giving through giving circles—informal convenings of people with aligned values, identifying and collectively deciding where to direct pooled funds—totaled more than $3.1 billion between 2017 and 2023. The vast majority of these giving circles are led and participated in by women.  

The report suggests that women, collaborative in nature, are motivated to move capital as a team. They feel their philanthropic investments are de-risked when they evaluate opportunities as a group with unique perspectives and when they can experience community building in the process. The welcome side effect of this type of collaboration among women in philanthropy is not only a more thoughtful and balanced approach that includes a diversity of decision making, but also larger collections of capital that can deliver impact more effectively. And this is becoming a growing movement: According to the Johnson Center, participation rates in giving circles have more than doubled every five years since 2001. 

When should we start educating young women in philanthropy? 

Yet, despite the important role of women in philanthropy, there remains a significant gap in engaging young women during their formative years. NextGen donors are largely defined as adults ages 18 to 40 who are set to inherit wealth. But as the head of my family foundation, I believe we have to start conversations around wealth at a younger age. We must engage our children during their formative years—ideally starting in elementary school, while their worldview and brains are being developed—and before resources get passed down. We must teach them the “bigger picture” of global issues and prepare them to use their future thought leadership and resources to participate in global change making. 

My daughter Ruby blossomed into a leader at her school following a trip to Zimbabwe, where she saw innovative solutions firsthand. It was this early exposure and in-the-field education that inspired her to do more back home. This bigger lens can help children explore questions such as: Why are we here? What is our purpose? How can we contribute? 

There are great organizations already doing the work of cultivating and promoting leadership among girls around the world, such as GirlUp and She’s the First. In a generation very well-documented to be suffering with anxiety, Half the Story is at the leading edge of the digital well-being movement for teens. There are also a plethora of organizations delivering education and support for NextGen donors on philanthropy itself, such as 21/64 and the Giving Pledge, not to mention nearly every financial institution that provides wealth management advising services. 

But what about combining leadership training with philanthropy for our younger set, who will find themselves with capacity to drive impact? It’s crucial to begin educating children on philanthropic topics—fostering real-world experiences and providing tools to cultivate deep learning and a love for innovative solutions that are not typically taught in a school system.  

How can we utilize wealth as a tool to enhance our familial relationships?

Philanthropy can be ripe for meaningful bonding and connection. Jay Shetty’s “4 Es of relationship strengthening” puts engagement at the highest level of connection—being in service together and contributing to something larger than yourself. Wendy Wecksell, a collaborator of mine, created the EQ of Wealth, a training on how wealth affects your emotions and relationships and how you can use that wealth to make a bigger impact. As the world becomes more complex, we’ll need to be holistic in our approach, but also more collaborative. Women who often are at the forefront of financial decision making and promoting bonded families and communities, will find great opportunity to achieve both of these results through collective giving. Further, these collaborative environments offer supportive and informative spaces for younger women to gain exposure and confidence as their ability to participate expands. 

If you want to help lay the groundwork for empowering future women leaders in philanthropy, here are three things to keep in mind: 

1. Meet women where they are. Make philanthropy experiential and memorable. Incorporating philanthropy into experiences women are already engaged in, like travel, offers opportunities to blend impact with leisure.  

2. Integrate your children. Philanthropy is a source of connection and leadership training. Bring children into family meetings, ask questions at the dinner table, bring children on philanthropy trips so they can see work in action, plan volunteering experiences together, and ask children for their input on charitable giving, starting with a small budget they can make decisions with. 

3. Embrace transparency and group decision making. Consider expanding your decision-making circle into a larger community where you can freely exchange ideas and opportunities and drive more capital into the causes where you desire change. 

We have work to do, and the future is bright. Particularly if we bring our children along for the ride and with a seat at the table. 

Photo credit: We Care Solar