The New Face of Philanthropy: How Gen Z Is Bypassing Traditional Systems 

In an era of declining faith in institutions, Generation Z is rewriting the rules of charitable giving. But their revolution isn’t happening in boardrooms or through traditional nonprofit channels—it’s playing out on TikTok, YouTube and GoFundMe. 

The signs of institutional distrust are stark: just 42% of Americans aged 18-29 voted in 2024, down from 53% in 2020. This political disengagement, however, doesn’t signal apathy. Instead, it reflects a generation’s strategic pivot away from systems they view as broken. At the highest level, it seems Gen Z’s sense of overall systems efficacy has decreased. Driven by disillusionment with the two-party system and a fatalistic view on key issues such as climate change, health care and gender equity, Gen Z increasingly sees traditional channels as dead ends rather than avenues for change.   

They haven’t found solace in the nonprofit sector either, despite its historically higher trust ratings compared to government. According to a new Gallup and Walton Family Foundation study, Gen Z’s skepticism extends across the spectrum of American institutions. Even philanthropy isn’t immune: a 2022 study by Independent Sector revealed that 57% of Gen Z believes giving directly through platforms like GoFundMe and mutual aid networks has more impact than traditional nonprofit donations. 

This generation has even coined a term for what they see as the problem: the “nonprofit industrial complex,” describing a web of relationships between public and private entities that sometimes prioritizes institutional interests over genuine social impact.  

But rather than simply critique the system, Gen Z is building alternative pathways for social change that align with their values and build on their digital fluency. Sixty-six percent of Gen Z say that their activism takes place online, and 51% have attended a rally or protest that supports a specific cause. Their commitment runs deep: only one in five would consider working for a company that doesn’t align with their values.  

For today’s youth, standing up for what they believe is about more than just giving money. Next-gen donors, defined as Millennials and Gen Z, are three times more likely than older donors to engage in advocacy for an organization or cause, and 20.3% of Gen Z report volunteering in a formal capacity. This generational shift is reshaping philanthropy to be more action-oriented and values-driven than traditional checkbook charity. 

The most visible manifestation of this transformation is the rise of “influencer philanthropy.” Through digital platforms and grassroots movements, Gen Z is re-shaping the giving landscape. According to the Johnson Center for Philanthropy, next-gen donors are four times as likely as traditional donors (i.e., baby boomers and Gen X) to learn about a cause through influencers or celebrities.  

Take Jimmy Donaldson, better known as “Mr. Beast” to his 360 million YouTube subscribers. His 2021 video “I Cleaned the World’s Dirtiest Beach,” which garnered over 123 million views, transformed environmental cleanup into compelling content while partnering with Team Seas to remove ocean trash. Similarly, TikTok star Alix Earle, who amassed over 10 million followers through her candid “Get Ready With Me” videos, recently established a scholarship fund at the University of Miami for aspiring entrepreneurs. These aren’t isolated cases; they represent a growing trend of digital influencers leveraging their platforms for social impact. 

This evolution reflects a broader shift in how social change happens in the digital age. While traditional institutions rely on established networks and reputational authority, Gen Z is demonstrating that trust and influence now flow through different channels. Their approach prioritizes transparency, direct action and measurable results over institutional prestige. 

Navigating Generation Z’s Philanthropy as a Traditional Nonprofit

As traditional nonprofits grapple with mounting challenges, Gen Z’s innovative approaches to philanthropy may prove prescient. They’re not just adapting to a digital world; they’re creating new mechanisms for social change that bypass traditional gatekeepers. The question isn’t whether this new philanthropy model will take hold—it already has. The real question is how established institutions will respond to a generation that’s found ways to drive social impact without them. 

For traditional nonprofits, the path forward requires a fundamental shift in thinking. First, they must recognize that engaging Gen Z as volunteers isn’t just about free labor—it’s about building genuine, long-term relationships. When young people develop deep connections with organizations through meaningful volunteer work, they’re more likely to become financial supporters as their careers progress and their earning power increases. 

Second, organizations need to understand that in today’s digital economy, attention itself is a valuable currency. Gen Z’s ability to amplify causes through social media can be more valuable than direct donations. A viral TikTok about a social issue can catalyze major donations from other sources and drive policy changes that traditional advocacy might take years to achieve. 

Third, nonprofits can borrow from Gen Z’s focus on community-level impact to renew their giving and communications strategies. These organizations should assess their giving to see how their grantmaking can reach the grassroots level directly and have a direct impact on communities, rather than passing through more large nonprofit institutions. Nonprofits should emphasize—especially on their social media—how their work creates meaningful impact at the human level. 

The future of philanthropy won’t be found in choosing between old and new models, but in bridging them. Organizations that can adapt to Gen Z’s values-driven, digital-first approach while maintaining their institutional expertise will be best positioned to drive lasting social change. The revolution in giving isn’t just about new platforms or younger donors—it’s about reimagining what philanthropy can achieve in a connected world.