The Wealth Transfer $18 Trillion Philanthropy Opportunity

[Donor-advised funds (DAFs), first created in the 1930s, have long been a cornerstone of philanthropic giving. However, they have undergone a remarkable evolution in recent years, driven by digital innovation and increasing donor interest. According to the Giving USA 2024: The Annual Report on Philanthropy for the Year 2023, Americans have facilitated over $550 billion to charity, with two-thirds of those funds coming from individuals.

Looking ahead, philanthropy holds immense growth potential, fueled by several key factors: the influence of the Great Wealth Transfer, the adoption of employee-driven corporate giving programs, the growing integration of philanthropy into holistic financial planning, and advancements in “Philanthropy-Tech”—digital solutions that simplify and personalize charitable giving. Notably, per a recent Cerulli Associates report, approximately $18 trillion of the $124 trillion Great Wealth Transfer is expected to go to charity.

To explore these trends and innovations, we spoke with Paul Lussow, CEO of TIFIN Give – a next-generation, digital charitable giving platform within the TIFIN ecosystem. Recognized as a 2024 WealthManagement.com “Wealthies” finalist for Charitable Innovator of the Year, TIFIN Give continues to lead the industry by redefining donor-advised funds and expanding the possibilities of philanthropy. Among its groundbreaking features is a collective giving campaign tool that allows donors to engage their communities through shareable links and QR codes, making philanthropy more collaborative and impactful than ever. We sat down with Paul to discuss how TIFIN Give is shaping the future of charitable giving and empowering advisors to bring philanthropy to the forefront of wealth management.]

Hortz: What are the most significant trends in philanthropy today, and how are donors’ behaviors changing?

Lussow: The amount of philanthropy has remained remarkably stable over time – hovering around 2% of total gross domestic product since the early 1970s and spanning various tax policy environments. However, the ways in which people approach their charitable giving is evolving rapidly.

Donors today are more informed, globally aware, and focused on aligning their charitable giving with their values. We are seeing a demand for transparency and measurable impact, as donors want to know how their contributions are making a difference.

Another critical shift comes with the rise of younger generations, who bring a more collaborative and tech-savvy approach to philanthropy. They are not just writing checks – they want to engage with causes and the broader community, leverage social media to amplify their impact, and use digital tools to make giving part of their everyday lives.

Lastly, we are seeing greater interest in utilizing vehicles such as donor-advised funds to facilitate this giving, which is driven by technology advancements.

Hortz: How is the “Great Wealth Transfer” influencing the charitable giving landscape?

Lussow: Most industry professionals are aware of the estimated $84 trillion moving between generations with the Great Wealth Transfer. What fewer people know is that nearly $18 trillion of this is projected to go to charity.

Advisors will play a crucial role in this shift, as they are uniquely positioned to help families incorporate philanthropy into their wealth strategies. This is particularly true given the growing emphasis on holistic financial planning, which by definition includes charitable interests. Younger generations tend to prioritize values-based financial strategies that align with their giving, providing a critical opportunity for advisors. Advisors who integrate these priorities can bridge generational gaps, retain assets, and cultivate long-term relationships with the Next Gen.

Hortz: How is technology reshaping philanthropy and how have specific tools like donor-advised funds (DAFs) benefited from this innovation?

Lussow: Technology has expanded the world of philanthropy by making it easier, faster, and more accessible.

Donor-advised funds have been around for the better part of a century, but were largely marked by laborious, manual administration. In recent years, DAFs have transformed from a niche solution into a more mainstream philanthropic tool, thanks largely to ease of use, wealth advisor awareness, and digital innovation. We have seen accounts nearly double in number to two million accounts since 2018.

DAF platforms like TIFIN Give have eliminated high barriers to entry by offering fully digital onboarding and management, allowing donors to open accounts and start contributing in minutes rather than weeks. This level of accessibility and transparency makes DAFs appealing to both seasoned philanthropists and first-time donors. It makes it easier for donors to view philanthropy in the context of their broader financial goals.

Hortz: The TIFIN Give platform, geared toward wealth managers, includes features like collective giving campaigns and family-oriented tools. What inspired these innovations?

Lussow: Only one in five affluent individuals stay with their parents’ financial advisor, indicating an opportunity for advisors to engage the next generation more strategically. For advisors, these giving tools strengthen relationships by creating opportunities to engage with client heirs early. This not only differentiates the advisor in an increasingly competitive market but also enhances loyalty across generations.

From inception, TIFIN Give has placed advisor and multi-generational engagement at the center of the platform experience, designed with the wealth transfer in mind. We know that philanthropy can be a bridge between advisors and the next generation. When wealth managers position philanthropy as a central part of holistic financial planning, they can create deeper engagement–especially with high-net-worth clients and their families by transforming giving into a strategic discussion rather than an afterthought.

Giving is increasingly a social activity. When you think about fundraisers on social media in response to natural disasters or other timely causes, it is driven by this mentality that more impact can be created when acting in tandem, rather than isolation. TIFIN Give’s collaborative campaigns functionality allows for giving to remain on one platform, regardless of the number of causes supported, while still bringing others into the experience. Through a collaborative campaign, donors at all wealth levels are empowered to engage meaningfully by spearheading their own campaigns or joining others.

We want to ensure that every user’s experience is personalized and impactful. Our vision for technology-enabled philanthropy is to make giving intuitive, engaging, and central to financial planning. As the space continues to grow, we aim to lead by constantly evolving and staying ahead of donor and advisor needs.

Hortz: For wealth managers, what advice would you give on integrating a tech-forward philanthropy solution like TIFIN Give into their practice?

Lussow: Philanthropy should be viewed as a strategic pillar of client engagement and asset retention, not as a nice-to-have. Start by integrating a solution like TIFIN Give into client onboarding and annual reviews, positioning it as part of their holistic financial plan. Use data-driven insights to demonstrate the impact of charitable giving, both financially and socially. Finally, leverage philanthropic conversations to connect with clients’ families, keeping a focus on building a multi-generational legacy. This approach not only adds value for clients but strengthens relationships and drives asset retention over time.

This article was originally published here and is republished on Wealthtender with permission.

About the Author

Bill Hortz

Founder Institute for Innovation Development

Bill Hortz is an independent business consultant and Founder/Dean of the Institute for Innovation Development- a financial services business innovation platform and network. With over 30 years of experience in the financial services industry including expertise in sales/marketing/branding of asset management firms, as well as, creatively restructuring and developing internal/external sales and strategic account departments for 5 major financial firms, including OppenheimerFunds, Neuberger&Berman and Templeton Funds Distributors. His wide ranging experiences have led Bill to a strong belief, passion and advocation for strategic thinking, innovation creation and strategic account management as the nexus of business skills needed to address a business environment challenged by an accelerating rate of change.