Why Philanthropy Belongs in the Wealth Plan 

It’s safe to say that philanthropy is never far from the minds of the wealthy, especially considering that it ranks as their second most popular interest and passion, behind only sport. Many are also weighing questions of inheritance, family philanthropy and legacy bequests. 

At the same time, the landscape around their giving is shifting. As Altrata’s High Net Worth Philanthropy 2026 puts it, “the nature of philanthropic giving is changing as much as its scale.” 

Drawing on the report’s findings, this article explores timely insights into today’s wealthy donors and how their giving is changing. For wealth managers, these insights can help bring philanthropic strategy into each client’s wealth plan, and make that giving count. 

Giving by the wealthy is becoming more strategic 

The scale of giving by the wealthy is considerable. The ultra wealthy, each worth $30 million or more, gave $250 billion to philanthropic causes in 2025. That’s 38% of the more than $650 billion given by individuals worldwide. 

Their giving has also outpaced that of other major donor groups. Since 2018, it has grown 7.3% a year, compared with 4.6% for other individuals and 6.0% for foundations. 

How the wealthy give is evolving, too. In the US, philanthropy among the ultra wealthy is becoming more concentrated, more strategic and more closely tied to longer-term wealth-preservation planning. 

That shift shows up in the continued growth of private philanthropic foundations and family offices among the ultra wealthy. These structures offer greater control, visibility and longer-term planning, along with certain tax advantages. 

Today, at least 17% have an individual or family foundation. That share rises further up the wealth tiers and is greater still in the US. 

Alongside these, donor-advised funds (DAFs) and charitable trusts give the wealthy a broad toolkit for structuring their giving. 

Looking ahead, the crossover between philanthropy, impact investing and strategic wealth management is broadening, especially among younger wealthy generations. 

For wealth managers, this shift matters. As more wealthy clients formalize their giving through foundations and family offices, philanthropy becomes a planning question as much as a personal one.  

Understanding how a client gives, and why, helps advisors tailor plans that reflect their financial goals and philanthropic ambitions. It can also open the door to multigenerational relationships, especially where family foundations are involved. 

Liquidity is the true gauge of giving capacity 

Net worth offers a useful big-picture view of a client or prospect. But when it comes to giving, liquidity is the truer indicator. The level of liquid assets an individual has in a portfolio is one of the most important gauges of philanthropic capacity, especially over the near term. 

Among individuals worth $5 million or more, liquid assets make up 28% of the average portfolio. In 2025, that amounted to $33 trillion, a figure forecast to top $45 trillion by 2031. 

The liquid share tends to rise with a person’s age and overall net worth. Wealthy individuals in North America also tend to hold a slightly higher proportion of liquid assets than their counterparts in Europe and Asia. 

The type of asset matters, too. Cash, income, dividends and other easily liquidated investments can be deployed relatively quickly for donations, as can publicly traded securities. In markets such as the US and UK, gifting appreciated shares directly is often the most tax-efficient route to a major gift. Retirement assets can also be directed to charity, for example through US qualified charitable distributions or bequests. 

Illiquid holdings, such as private businesses, property, luxury collectibles or non-transferable pension and retirement accounts, typically require a sale or restructuring before they can fund a gift. Advisors who understand a client’s full asset mix are well placed to help identify the most practical route to giving. 

A low share of liquid assets doesn’t rule out a major gift, though. Holdings can change quickly through the sale of a major business stake, an IPO, corporate refinancing or an inheritance. In some cases, that can suddenly transform a client’s capacity to give. For advisors, these moments are natural openings to revisit a client’s philanthropic plans. 

The range of assets that can be given directly to philanthropic causes is also expanding, as giving infrastructure and financial markets become more sophisticated.

A growing, evolving client base 

Many of the wealthy clients advisors serve today won’t be the ones they serve in 15 years. Over that time, the generational and gender profile of the wealthy class is set to change dramatically. That shift will have far-reaching implications for how advisors build and keep client relationships. 

The wealthy population is growing. Individuals worth $5 million or more are forecast to number 8.3 million by 2031, up from 5.8 million in 2025. For wealth managers, that means a larger pool of potential clients, and a more diverse one. 

Who makes up that pool is changing, too. By 2040, half of all individuals worth $5 million or more will be different from those in the group today. Gen X and Next Gens (Gen Z and Millennials) are forecast to make up 82% of the global wealthy, up from 44% today. 

The great wealth transfer is also gathering momentum, with more large-scale estate transfers and family gifting to younger generations. That wealth is often passing to heirs at an earlier life stage than it did for previous generations. 

These younger generations are typically more global in outlook, more mobile and more digitally savvy than their elders. That shapes what they support and how they engage. They tend to place more emphasis on collaborative relationships and measurable outcomes. Many are willing to combine grants with impact investments, and they rely heavily on digital platforms. 

For advisors, this goes well beyond philanthropy. The approaches that built relationships with today’s clients may not resonate with their heirs. Advisors who engage the next generation early, around their values and expectations, will be better placed to keep relationships intact as wealth changes hands. 

Women are an increasingly important part of this shift. Their share of the ultra wealthy is set to rise from 12% to 19% by 2040. Among those worth $5 million to $30 million, it will rise from 20% to 25%. Wealthy women also tend to be more philanthropically active than men, whatever their source of wealth. 

That difference shows up clearly in the data. Among donors worth $5 million or more, women’s median number of gifts over the past decade was 1.7 times that of men. They also gave to a wider range of causes, with a median of 1.5 times as many distinct causes. The pattern holds whether their wealth was self-made, inherited or a mix of both. 

For wealth managers, that makes philanthropy a natural part of the conversation with wealthy women. Their giving is often more frequent and spread across more causes, so planning that reflects those goals can strengthen the relationship.

As more women become primary controllers of personal and family wealth, the report points to the need for more tailored relationship-building. For advisors, that means engaging women directly, with strategies that reflect their motivations, networks, priorities and legacy goals. 

What this means for advisors 

Make giving part of the planning conversation. As philanthropy becomes more integrated with wealth-preservation planning, clients’ giving goals belong alongside estate and succession discussions. 

Look at liquidity, not just net worth. A client’s liquid assets shape what’s possible in the near term. Changes like a business sale or an inheritance can reshape it quickly. 

Know what clients care about. Education remains the standout cause, with some 60% of the global wealthy donating to it at least once over the past decade. But environmental causes are gaining ground fastest, and healthcare and medical research and social services have each risen by around 15%. 

Engage the next generation early. Younger wealthy individuals are more likely to expect measurable outcomes and to combine grants with impact investments. Understanding those priorities before wealth changes hands helps advisors build lasting relationships across generations. 

How wealth managers use Altrata to guide clients’ giving 

Philanthropy is never far from the minds of the wealthy. But how they give, what shapes their capacity and who holds the wealth are all changing. For advisors, keeping pace starts with a fuller picture of each client. 

That’s where Altrata comes in. Our database brings together the details that shape a client’s philanthropic life, from their financial profile and career history to their affiliations, family background, philanthropic endeavors and interests. With that context, advisors can have more informed conversations about giving and build plans that reflect what matters most to each client. 

Altrata also reveals the connections around each client. The typical wealthy individual is directly connected to more than 100 other wealthy individuals. Through Altrata’s professional relationship mapping, advisors can see those networks clearly and find where an existing client relationship could lead to the next. 

As giving becomes a bigger part of the wealth plan, the advisors who know their clients best will be the ones who help that giving count. Book your demo to learn how wealth managers leverage Altrata to better engage and connect with prospects.