As the balance of wealth trends towards women, the face of philanthropy will change dramatically. Talk about coming a long way.

Women have a rich history of philanthropy, gaining respect and social agency along the way.  To appreciate just how much philanthropy has shaped women’s role in society, one must travel back to the 17th century.

In 1643, Lady Ann (Radcliffe) Moulson donated £100 for the first scholarship fund at Harvard College. She did this on her own, which was highly unusual at a time when a woman’s philanthropic endeavors were typically tied to her husband’s or family’s wealth.   

Women’s involvement in philanthropy surged in the late 19th and early 20th centuries, when they began engaging in philanthropy behind the scenes through volunteering, such as helping soldiers during war times. By organizing volunteer associations and working together, women began to shape the types of philanthropic causes they favored and gain decision-making power beyond the constricts of their husband’s or family’s wealth influences. 

In the 1960s, women’s philanthropy began to rapidly evolve and accelerate with the growing number of women entering the workforce and seeking higher education. This resulted in an increasing number of women accumulating their own wealth and the rise of economic and social equality. According to the Lilly Family School of Philanthropy Women’s Philanthropy Institute (WPI), women now hold about 40% of global wealth. It has been estimated that by 2023 women’s global wealth will rise to at least $81 trillion versus $34 trillion in 2010. As the U.S. is in the midst of the largest transfer of wealth in its history, the Boston College’s Center on Wealth and Philanthropy estimates women will inherit 70% of the “Great Wealth Transfer,” which means women will possess two-thirds of our country’s wealth by 2030.  

Along with the immense wealth accumulation among women, WPI research also shows women are more likely than men to give at all income levels. This is causing a major swing in philanthropy, with women being their own philanthropic decision-makers using their individual resources. With this shift, it is important to understand the research delineating how women’s and men’s philanthropic behaviors are different to effectively advise women in philanthropic planning.

In short, according to WPI, women typically display the following characteristics in their giving:

• motivated to give based on their empathy for others while men often give based on their self-interest.
• tend to give smaller amounts across a number of organizations, while men tend to concentrate their giving.
• often unconsciously look for high-impact volunteer roles over high-profile ones.
• are more likely to volunteer more hours than men.
• need more time and information to make gifting decisions and expect to be engaged before they are asked for a gift.

Lastly, women are more inclined to work with others when supporting a charitable cause. WPI research found that collective giving circles in the U.S. tripled between 2007 and 2017, and women dominate collective giving circle membership, making up 70% of all members. Collective giving circles provide an avenue for multiple individuals to pool their money to give large grants to make a greater impact in the community. Through these groups, women tend to discuss their charitable wishes and inspire others to give, resulting in a rising philanthropic women’s movement. Melinda Gates said it best during a WPI Symposium: “This is our strength as women — we cooperate, we collaborate, and we innovate to amplify our voices and accelerate change.” 

With their mounting individual wealth and desire to work with others, women are generating philanthropic change on their own terms and are likely to be the leading philanthropic teachers to future generations. They will give more, inspire more and increasingly instill their philanthropic values in others, escalating them to the forefront of the philanthropic landscape. Through their estate plans, women are instilling their individual philanthropic values by creating donor-advised funds, charitable trusts and family foundations where they name their children and grandchildren as trustees. Meaning, for advisors, it is crucial they listen to and understand their client’s motivations and goals to implement an effective philanthropic plan. Dr. Mesch of the WPI said, “Gender matters in philanthropy, Men and women engage in philanthropy differently. One is not better than the other. They’re just different.”