By: Heather Willis, Senior Consultant

The largest wealth transfer in history, combined with the rise of artificial intelligence, is transforming philanthropy. As trillions shift to next-gen inheritors who demand personalization, transparency, and impact, AI is changing how nonprofits understand, engage, and inspire them. The challenge is not if AI will influence next-gen giving, but how quickly organizations adapt to these data-driven expectations.

More than $80 trillion in family wealth will transfer in the next 15 years, according to the UBS Global Wealth Report 2024, forming a new class of next-generation millionaires who engage differently than prior donors. As AI transforms nonprofit tools, nearly three-quarters of donors say organizations should use AI to enhance marketing, fundraising, and efficiency. This convergence means fundraising will be smarter and more tailored to Gen X, Millennial, and Gen Z donors.

AI is redefining nonprofit fundraising. The argument is clear: organizations that adapt AI-driven tools like virtual engagement officers and autonomous fundraising will thrive in building meaningful connections with a digital-native, impact-driven donor base.

The National Center for Family Philanthropy (NCFP) Trends 2025 report, published earlier this year, reveals how the next generation is transforming philanthropy with new approaches to giving and highlights AI’s role in engaging young donors. There is great potential in advancing how AI responsibly supports the future of giving.

How the Next Generation Donates

Young donors, especially Gen Z and Millennials, are increasingly generous, but their giving goes far beyond dollars.

• Over 84% of Gen Z support nonprofits – not just through financial gifts but via advocacy, volunteering, and sharing
• Gen Z and Millennials want their donations to create tangible They prefer grantee-friendly giving, unrestricted funds, and direct grassroots support.
• Next-gen donors favor giving channels that fit daily routines: mobile apps, social media, or point-of-sale Instant access matters.

Next Generation’s Impact on Philanthropy

The next generation is shifting the philanthropic landscape to be more community-centered, collaborative, and values-driven.

• There is a movement away from traditional ‘philanthropist’ labels—young donors want to be known as givers, advocates, and changemakers who catalyze systemic change, especially in their
• Next-gen donors prioritize accountability and transparency, expecting nonprofits to demonstrate clear, measurable impact and ongoing engagement.
• These donors favor tools like donor-advised funds, impact investing, and technology platforms for

Role of AI in Next Generation Giving

Nonprofits are working to engage the younger generation given these trends. AI is quickly becoming the solution by personalizing and enhancing every step of the donor experience, saving time for both nonprofits and donors. What matters is that donors feel seen, known, and heard, with AI used alongside human interaction.

• Most organizations manage under 3% of their Virtual Engagement Officers (VEOs), AI fundraisers interacting via text, email, and video, engage thousands at once, increasing outreach, frequency, and reactivation. VEOs scale fundraising outcomes.
• Nonprofits use AI and data analytics to tailor communications, segment donors by interest and giving history, and increase retention through personalized journeys.
• AI matches donors to causes, automates thank-yous (even handwritten notes), and offers real-time impact
• AI chatbots provide instant, 24/7 support, answer questions, facilitate donations, and share personalized stories, ensuring donors feel valued and engaged.
• Storytelling with AI allows nonprofits to connect with their audience on an emotional level, making their missions more relatable and Using data insights, nonprofits can identify the stories that matter most and create a targeted, compelling story that makes the donor feel connected and creates a sense of community and loyalty.
• Virtual events and fundraisers save time and money. Online gatherings help organizations reach a wider audience and break geographical barriers.
• Data hygiene and strong AI policies are essential for trusted, ethical donor Organizations invest in robust data management and responsible use to ensure privacy and accuracy.

Summary: Why These Trends Matter

The convergence of next-gen expectations, AI technology, and historic wealth transfer is remaking philanthropy’s foundation. The essential argument: nonprofits that leverage AI to meet rising demands for impact, transparency, and innovation will secure sustainable, engaged donor pipelines and catalyze lasting social change.