Redefining Wealth: Insights into NextGen Inherited Wealth and Its Growing Impact
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Part I: An Introduction to the Grand Street Legacy and the Next Generation of Philanthropists
In a world of rapid change and shifting priorities, the recent NextGen Inherited Wealth Report unveils an enlightening look into the minds and values of a generation poised to inherit significant wealth. As millennials and Gen Z prepare to receive what’s projected to be one of the largest wealth transfers in history, understanding their mindset is crucial—not only for them as wealth inheritors but for society at-large.
This report dives into how these young inheritors are redefining wealth management by aligning their financial strategies with personal values like sustainability, philanthropy, and social equity. Unlike previous generations, many NextGen inheritors prioritize impact investing over mere accumulation. They see wealth as a tool for change, viewing legacy not solely in terms of financial gain but through the positive societal shifts they can help effect.
The largest intergenerational wealth transfer in history is underway, with trillions of dollars set to move into the hands of new stewards. In this pivotal moment, a 20-year longitudinal study conducted by 21/64 shines light on a groundbreaking program that equips NextGen donors with the skills, confidence, and vision to embrace their roles as intentional philanthropists. The report, “Twenty Years Later,” showcases the incredible impact of Grand Street. This peer-based program started as a bold experiment and became a transformational force in the philanthropic sector. We’re huge fans of its research and data-driven insights.
The Origins of Grand Street
Grand Street was founded in 2003 by the Andrea and Charles Bronfman Philanthropies, designed to met the unique needs of inheritors of wealth and philanthropy. Recognizing the lack of support for NextGen donors, the program brought together small cohorts of young adults from Jewish families to build their identities as philanthropists. Grand Street offered a space for participants to explore their values, find their voices, and connect with peers who understood the weight of their responsibilities.
From its humble beginnings as a single cohort retreat, Grand Street expanded to encompass 19 cohorts over two decades. Along the way, it catalyzed initiatives like Slingshot, a guide to innovative Jewish nonprofits, and the Slingshot Fund, which empowered participants to pool resources and engage in collaborative grantmaking.
What the Data Shows
The report underscores the transformative power of investing in young philanthropists at a formative stage. Among the key findings:
83% of participants experienced a shift in their philanthropic identity, moving from inherited family values to crafting their own principles.
94% reported newfound confidence in their abilities to make philanthropic decisions.
Participants who faced challenges within their family structures found ways to forge independent philanthropic paths, establishing their own foundations and Donor Advised Funds (DAFs).
Grand Street’s story is one of transformation—both for the participants and the philanthropic landscape itself. By prioritizing identity formation and peer connection, this program has prepared hundreds of young leaders to step into their roles with purpose and creativity. As we dive deeper into the findings in the next posts, we’ll explore what makes this approach so impactful.
Keep a lookout for Monday's post where we analyze Grand Street’s findings and offer our insights.
For additional insights, check out our full suite of blog posts here.
