The New Wave Of Philanthropy: Innovative Approaches For Young Leaders

The Middle East is experiencing a seismic shift in philanthropy, driven by a new generation set to inherit an astounding $1 trillion by 2030. These young philanthropists are breaking away from tradition, embracing transparency, collaboration, and a relentless focus on impact. Their open-mindedness encourages them to explore non-traditional giving methods, alongside or in-lieu of conventional donations.

Research indicates that over 45% of Middle Eastern next-generation philanthropists are receptive to innovative approaches, such as utilizing donor-advised funds, engaging in impact investing, and participating in microlending. Women are leading this charge, prioritizing grassroots initiatives and challenging the status quo of funding models. The region is seeing a surge in cross-sector partnerships, uniting governments, NGOs, and private enterprises to catalyze large-scale social change.

As this dynamic generation champions non-traditional methods and fosters cross-generational dialogue, they are redefining philanthropy to address the critical challenges of our time.

The changing face of philanthropy

Research has shown that 35% of baby boomers consider themselves to be philanthropists versus 74% of millennials. Particularly in Middle Eastern families across the region, we are increasingly seeing the rising generation take on leadership positions within their families giving. They are embracing a broader definition of philanthropy beyond just donations: They are thinking about giving time and talent as they leverage both their networks and different asset classes to further causes, they are passionate about while embracing innovation. They are also identifying when new tools are needed to further global impact goals.

The rise of wealthy female philanthropists means more money is being directed towards causes that may previously have been marginalized or underfunded. We often see trends amongst the female philanthropists we work with: Women are keen to learn from their peers; they are more likely to give over a longer term; they are open to taking risks with their philanthropy, and engage in significant education and research before making million-dollar gifts.

For those venturing into this new era of philanthropy, we present a guide below to help you uncover your philanthropic purpose and take the first steps on your journey:

Finding your own identity

Creating your own path within your family's giving begins with understanding the rich philanthropic legacy that has shaped your family's values and history. This foundation will guide your personal philanthropic endeavors, allowing you to build upon what has come before. Engaging in open discussions with your family about their giving history and values can provide valuable insights and inspire you to introduce fresh perspectives. By participating in charitable boards, volunteering, or advocating for causes that resonate with you, you can identify opportunities to expand your impact. Additionally, consider creating a separate fund or seeking a portion of your family's charitable budget to pursue your personal philanthropic goals. These activities will help you develop a unique philanthropic identity while honoring and enhancing your family's legacy.

Getting started

Beginning your journey with individual giving involves thoughtful reflection on your personal values. Identifying what truly matters to you and the changes you wish to see in the world will form the foundation of your philanthropic endeavours.

Engaging with your community is important; learning from others' experiences helps pinpoint causes that resonate with your principles. Attending local meetings or charity events offers insights into pressing issues, while online forums can provide new ideas and solutions.

Volunteering is beneficial for gaining first-hand experience with organisations before deepening your involvement. By volunteering or joining a nonprofit board, you can grasp the inner workings, needs and outcomes of these organisations

Once you have started your giving journey it is important to manage expectations. Creating a strategic giving plan that outlines your priorities and budget, while remaining flexible to respond to friends, family interests and disaster response, ensures your philanthropic efforts are both effective and fulfilling.

Philanthropy is a journey

As part of the rising generation, you hold the unique power to shape the future through innovative approaches and active engagement. Today's young philanthropists are redefining the landscape by prioritizing transparency, collaboration, and measurable impact. Giving back not only benefits communities but also enriches your own life, expanding your network and connecting you with inspiring changemakers. Philanthropy is a journey of personal growth and the creation of a lasting legacy. As you embark on this path, embrace continuous to maximize your impact, paving the way for a brighter world for generations to come.

The writer is Philanthropy Advisor, J.P. Morgan Private Bank EMEA

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