Why Philanthropy Matters : Auracorn Inc

An unprecedented wealth transfer is set to reshape philanthropy as we know it. Over the coming decades, Baby Boomers and the Silent Generation will pass down their wealth to the Next Generation—Gen X, Millennials, and eventually, Gen Z. This shift is monumental, with an estimated USD 124 trillion expected to transfer across generations over the next 25 years, including USD 105 trillion flowing to heirs and USD 18 trillion directed toward philanthropy, according to the 2024 Cerulli US HNW & UHNW Markets Report.

As this transition unfolds, the perspectives and values of Next Gens will play a critical role in redefining how high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) approach philanthropy. Through extensive discussions with our clients, including numerous advisory sessions, Auracorn Collectives, and Philanthropy Insights trips, we have identified four emerging trends that will shape the future of philanthropy in 2025 and beyond.

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We will continue to monitor these and other trends, as the increasing wealth moving into the hands of the Next Gen means they are poised to redefine the philanthropic landscape of tomorrow.

1. Focusing on Impact Returns

Next Gens are breaking traditional boundaries between philanthropy and investing. Unlike previous generations, who often kept their investments and charitable giving separate, younger philanthropists prioritize financial strategies that achieve measurable social and environmental impact alongside economic returns.

Next Gens see themselves as stewards of wealth, ensuring its preservation while maintaining a strong reputation. Their focus extends beyond traditional grant-making to innovative financing solutions that create sustainable, long-term change. They are actively engaging in blended finance structures, such as income share agreements (ISAs), where students from developing nations access tertiary education with flexible repayment plans. These structures combine philanthropic funding with commercial investments, making impact-driven projects financially viable at scale.

According to our insights, 68% of billionaire Next Gens intend to build upon their parents’ impact legacies, with less distinction between philanthropy and financial investments. This signals a paradigm shift towards a holistic approach where capital serves both social good and economic prosperity.

2. Taking a Hands-On Approach

Beyond financial contributions, Next Gens are reshaping philanthropy through active engagement. They are not just writing checks—they are sharing expertise, participating in governance, and forming strategic partnerships with NGOs, social enterprises, and impact-driven businesses.

Rather than focusing solely on donations, they prioritize initiatives that create systemic change. Their involvement often extends to mentorship programs, skills-based volunteering, and cross-sector collaboration. This hands-on approach ensures that their philanthropic efforts are not only well-funded but also strategically executed for maximum impact.

3. Prioritizing Environmental and Social Justice

Sustainability and social equity are at the core of Next Gen philanthropy. Climate action, biodiversity conservation, and social justice movements are key areas of focus. These philanthropists recognize the urgency of global challenges and are leveraging their wealth to drive change in environmental policy, renewable energy adoption, and corporate social responsibility.

The Next Gen’s commitment to these causes is evident in their investment decisions. Many prioritize ESG (Environmental, Social, and Governance) criteria in their portfolios and support businesses that champion sustainable and ethical practices. By aligning financial strategies with global challenges, they ensure that their contributions create lasting positive change.

4. Leveraging the Power of Digital

Technology is a powerful enabler of transparency, advocacy, and efficiency in philanthropy. Next Gens are utilizing digital tools to track the impact of their contributions, engage with communities, and amplify their influence. Social media, blockchain for transparent funding, and AI-driven impact measurement are transforming the philanthropic landscape. They recognize the power of storytelling and digital advocacy to mobilize resources and drive social movements. Crowdfunding, online giving platforms, and decentralized philanthropy models are becoming increasingly popular, ensuring that charitable efforts reach wider audiences and achieve greater impact.

Why Philanthropy Matters

At Auracorn, we believe that philanthropy is more than just giving—it is an essential tool for driving innovation, social progress, and global transformation. The Next Generation has a unique opportunity to redefine the purpose of wealth, ensuring that it serves as a force for good in addressing the world's most pressing challenges. With trillions set to change hands, the impact of this shift will be profound. The Next Gen is not just inheriting wealth; they are inheriting responsibility. Their decisions will shape the future of philanthropy, influencing how capital is deployed to build a more equitable, sustainable, and resilient world. As we move forward, Auracorn remains committed to supporting Next Gens in their philanthropic journey—helping them navigate this evolving landscape, maximize their impact, and create legacies that extend far beyond financial wealth.

Next Gen philanthropists are reshaping the landscape of giving with motivations that go beyond traditional charitable donations. Their approach is deeply rooted in purpose, impact, and innovation. Here are key insights into what drives their philanthropy:

1. A Strong Sense of Responsibility

Unlike previous generations, many Next Gens view wealth not just as a privilege but as a responsibility. They see themselves as stewards rather than owners of capital, aiming to use their resources to create long-term societal benefits. This is especially true for heirs of wealth who feel a duty to honor and expand upon their family's philanthropic legacy.

2. A Desire for Meaningful Engagement

Philanthropy is not just about writing checks—it’s about being actively involved. Next Gens want to be hands-on, directly engaging with the causes they support. Many are involved in nonprofit leadership, impact investing, and social enterprises, ensuring their contributions are strategic and effective.

3. A Data-Driven Approach to Giving

With access to advanced analytics and impact measurement tools, Next Gen philanthropists seek transparency and accountability. They prioritize measurable outcomes, using data to track progress and adjust strategies in real-time. This results-oriented mindset makes their philanthropy more effective and scalable.

4. Alignment with Personal Values

For many Next Gens, philanthropy is deeply personal. They focus on causes that align with their own values and lived experiences, such as climate action, social justice, or education. This emotional connection fuels their passion and commitment to driving real change.

5. Integration of Philanthropy with Business and Investing

Rather than treating philanthropy as separate from wealth creation, Next Gens are integrating giving with their investment strategies. Many engage in impact investing, ESG (Environmental, Social, and Governance) initiatives, and blended finance models, ensuring that their capital generates both financial and social returns.

6. A Preference for Collaboration and Innovation

Next Gens often take a networked approach to philanthropy, partnering with other philanthropists, NGOs, and the private sector to scale solutions. They are drawn to innovative funding models, such as venture philanthropy, social impact bonds, and catalytic capital, which enhance the effectiveness of their contributions.

7. Leveraging Technology for Greater Reach

Technology is central to how Next Gens engage with philanthropy. They use blockchain for transparency, AI for impact assessment, and social media for advocacy. Digital platforms enable them to reach global audiences, mobilize resources quickly, and enhance engagement with beneficiaries.

8. A Long-Term Vision for Systemic Change

Rather than focusing on short-term relief, Next Gen philanthropists are committed to systemic change. They support policy advocacy, education reform, and sustainable development initiatives that address the root causes of social and environmental challenges.

9. A Willingness to Take Risks

Unlike traditional philanthropy, which often funds proven solutions, Next Gens are more open to funding experimental and disruptive ideas. They embrace risk-taking, recognizing that breakthrough innovations often emerge from bold, untested approaches.

10. A Holistic View of Impact

For Next Gens, success isn’t measured solely in financial terms. They look at the ripple effects of their actions—how their contributions empower communities, influence policies, and inspire systemic change. They are deeply committed to creating a legacy that extends far beyond wealth.

Final Thought: A New Era of Purpose-Driven Wealth

The Next Generation isn’t just inheriting wealth; they are redefining its purpose. Their approach to philanthropy is more engaged, strategic, and impact-focused than ever before. As this shift accelerates, we will see a more interconnected, innovative, and results-driven philanthropic landscape emerge.

At Auracorn, we are committed to supporting Next Gens in their philanthropic journeys—helping them maximize their impact, navigate emerging trends, and shape a future where capital is a force for lasting good.

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