A new report from Fidelity Charitable found that there is a huge generosity gap among different generations of entrepreneurs.
The report, titled Entrepreneurs as Philanthropists, concluded that Millennial entrepreneurs volunteer and give significantly more than their older counterparts. These findings are based on a 2018 survey of 3,000 American adults, over 700 of which were current or former business owners.
Results from the survey showed that the average Millennial entrepreneur donated $13,654 in 2017. That’s more than double that of Gen Xers ($6,200) and Baby Boomers ($6,192).
“The philanthropic landscape is changing, and our research shows that Millennial entrepreneurs are shaping a new way for charitable giving,” said Pamela Norley, president of Fidelity Charitable. “Millennials want to feel a connection to causes they care about. While these characteristics are not limited just to the entrepreneurs of the Millennial generation, their practical impacts on philanthropy become more pronounced through the lens of entrepreneurship.”
Survey results also indicate that Millennial business owners take a vastly different approach to business and philanthropy. For example, 80 percent of Millennial entrepreneurs said that giving is very important, compared to just 57 percent of Gen Xers and 48 percent of Baby Boomers.
Millennial entrepreneurs also placed a higher emphasis on becoming actively involved with the causes they support. More than half viewed volunteering as an opportunity to learn new skills, versus only 33 percent of Gen Xers and 20 percent of Baby Boomers.
And while Millennial entrepreneurs have proven to be the most generous of the generations, that’s not to say that the contributions of Gen Xers and Baby Boomers should be downplayed or overlooked.
“We know that entrepreneurs are committed and effective philanthropists,” Norley stated. “While different generations may approach philanthropy with varying attitudes, behaviors and values, the unique giving behaviors of entrepreneurs will continue to make an outsized impact on the causes they support. Regardless of generation, entrepreneurs will continue to be a driving force for philanthropy in the world.”