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I just attended the Nexus Global Youth Summit at the United Nations in New York City. This meeting was attended by 800+ millenials who want their wealth and wits to make the world a better place. It was a real eye-opener for me;
in this trend report I will share some insights I gleaned.
At the Nexus Summit I encountered four types of participants . . .
Young inheritors �" individuals from families who are passing down from one generation to the next significant finanicial resources in trusts and foundations. A Nexus presenter observed that between 1988 and 2052 over $41 trillion will be passed on from one generation to the next. The result is a huge cadre of young adults with large fortunes that they, in many cases, intend to use to make a difference in the world. At the Summit, many of these young adults I met had a clear idea of how they would invest their fortunes, while others were still defining a vision for their wealth.
Serial entrepreneurs �" individuals who have built up and sold numerous businesses before the age of 35. Those attending Nexus had found that they were not achieving happiness through the fortunes they were accumulating, and were determined to use their talents to solve the world’s problems (see ExchangeEveryDay, “Happy Dollars,” at end of text). These individuals are working to make a difference through: recycling wasted food; focusing attention on the role of oceans; building low-cost housing; distributing safe, economical cooking stoves; curing skin cancer; and advocating for social justice.
Donor advisors who provide guidance to wealthy individuals wanting to achieve maximum impact with their charitable contributions. Some worked in large investment firms; others worked as individual consultants. These advisors help donorsidentify their values and match them to non profits that share this vision. The next generation of donors are hungry for deep relationships with organizations, combined with hands-on experiences.
Social impact investors �" people looking to invest their own money, or the money of others, in double bottom-line businesses �" businesses that accomplish measureable social objectives while spinning off a profit. In the past decade, impact investing has grown from a niche market to a really hot idea. One presenter indicated that as of 2012, nearly $200 billion in assets had been committed to impact investing.
My Unofficial Observations
Philanthropy is big business. Peter Buffett (son of the billionaire, not the singer) pointed out that in the United States alone, philanthropists give away just under $500 billion annually. With all these assets directed at solving the world’s problems, one would think that nirvana is just around the corner. However, this is what Buffet observed:
“As more lives and communities are destroyed by the system that creates vast amounts of wealth for the few, the more heroic it sounds to ‘give back.’ It’s what I would call ‘conscience laundering’ �" feeling better about accumulating more than any one person could possibly need to live on by sprinkling a little around as an act of charity.
“But this just keeps the existing structure of inequality in place. The rich sleep better at night, while others get just enough to keep the pot from boiling over. Nearly every time someone feels better by doing good, on the other side of the world (or street), someone else is further locked into a system that will not allow the true flourishing of his or her nature or the opportunity to live a joyful and fulfilled life.”
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