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Wealthy next-gens committed to solving inequality gap

Almost half of wealthy next-gens want to use their money to bridge the gap between rich and poor, a new study has found.

Almost half of wealthy next-gens want to use their money to bridge the gap between rich and poor, a new study has found.

According to research for the Charities Aid Foundation, a UK-based organisation that provides financial services to charities, 44% of next-gens – defined as those under 30 years old – were concerned by the gap between rich and poor.

In contrast, only 28% of the older generation – those over 45 – saw the inequality gap as the biggest challenge the world is facing today.

Entitled The Future Stars of Philanthropy, the report was based on a survey by research firm Scorpio Partnership of more than 1,400 people with an average net worth of more than £1.5 million (€1.9 million).

It found that next-gens have a stronger commitment to philanthropy, with 33% of those under 30 saying that being involved in a cause mattered to them, compared with only 16% of those over 45.

In particular, according to the study, people born between 1980 and 1999 – the so-called Generation Y – were most interested in making contributions to causes such as the inequality gap and education, while those over 45 preferred “supporting the older generation”.

Next-gens were more involved than the older generation in all causes, including education – 30% of those under 30 and 26% of those over 45 were active in this area. It was followed by corruption (29% and 25%) and climate change (25% and 20%).

Thirty-eight percent of next-gens were also involved in social philanthropy.

John Canady, director of philanthropy at the Charities Aid Foundation, said: "Our report shows that there is a group of wealthy young professionals who want to roll up their sleeves, get involved and really make a profound difference to the causes they care about.

"We need to make sure that government and business leaders do all they can to encourage young entrepreneurs and professionals to get involved and back charities with finance and expertise."

According to the research, which surveyed high net worth individuals from the UK, US, Australia, Canada, Singapore and Malaysia, next-gens gave $10,196 (€7,848) on average in 2009/2010 – almost $3,000 more than those over 45, who gave $7,382.

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