The Emerging Forces in Philanthropy: Diaspora, Faith, Crypto, and Gen Z

When we talk about philanthropy, we usually picture foundations, corporate social investment programmes, and formal grant-making structures. But here’s what I’ve learned after two decades in this space: some of the most powerful forces shaping the future of giving operate entirely outside those systems, or alongside them in ways that mainstream philanthropy consistently underestimates.

Our latest report identifies four “emerging forces” already reshaping who gives, how money moves, and what communities expect from philanthropic capital: diaspora giving, religious institutions, digital and cryptocurrency-enabled giving, and the rapidly rising influence of Millennials and Gen Z. These aren’t fringe phenomena. They’re fundamental shifts in how resources flow, who holds power in philanthropic relationships, and what legitimacy looks like in an increasingly networked world.

View the complete 2025/2026 Global Philanthropy Research Report

1. Diaspora Philanthropy: The Invisible Giant

Let me start with a number that should change how we think about development finance: remittances from the African diaspora to Africa exceeded $100 billion in 2024, with growth of 5.8% (compared to just 1.2% in 2023).

To put that in perspective, this people-to-people capital flow now consistently outpaces foreign direct investment. And yet diaspora philanthropy remains one of the most overlooked streams of transnational giving in mainstream discussions.

Why does this matter? Because these flows reach households directly, without intermediaries, strengthening the real economy in ways that traditional aid simply cannot replicate. This isn’t aid. It’s invested capital moving through social networks, driven by trust, reciprocity, and lived connection to place.

Beyond survival: the strategic shift

Here’s what’s often misunderstood: remittances aren’t just “family support.” Yes, roughly 75% goes to essentials: food, housing, education, health. But the remainder creates a bridge between daily resilience and longer-term development. It gets saved. It gets invested. It builds businesses, funds education, and strengthens community infrastructure.

What we’re seeing now is a shift from informal sending toward more strategic diaspora philanthropy, where giving connects to measurable outcomes and longer-term change. The research identifies several enablers of this more structured engagement:

Formalisation mechanisms like diaspora bonds, pooled funds, and structured giving vehicles that channel individual contributions toward collective impact. Dual citizenship and participation policies that enable stronger engagement rather than treating emigrants as lost citizens. Transparent institutions that reduce deterrents like corruption risk and build confidence that resources will reach intended purposes. Skills transfer, not only financial transfers, diaspora communities bringing expertise, networks, and knowledge alongside capital. Technology platforms that reduce transaction costs and improve transparency, making it easier to give strategically rather than just respond to immediate needs.

The friction points we can’t ignore

Even as costs fall, remittance fees to Africa remain too high, nowhere near the SDG 10.c target of 3% average cost by 2030. Trust deficits and reliance on informal channels also make the true scale hard to measure and harder to leverage for broader development impact.

For South Africa specifically, the opportunity is to treat our diaspora not as “external donors” but as invested stakeholders. This means facilitated giving platforms, reduced bureaucratic barriers, and transparent reporting that builds confidence over time. It means recognising that South Africans abroad remain deeply connected to home, and that connection is an asset, not a loss.

2. Religious Institutions: Hidden Philanthropic Powerhouses

If diaspora giving is invisible because it bypasses institutions, faith-based giving is underestimated because it’s so normalised that it disappears into the background.

Religious institutions represent one of the world’s largest philanthropic channels, frequently matching or exceeding other forms of giving in many regions. In Africa, the religious economy operates at an immense scale, with faith-based institutions playing critical roles in healthcare and education delivery – the Catholic Church alone operates an extensive school footprint across the continent.

The numbers are staggering. Islamic giving through Zakat and Sadaqa disperses an estimated $400 billion to $1 trillion annually, channeling resources into mosques, schools, healthcare, and social services. In South Africa, exact totals are difficult to quantify, but religious giving across all faiths likely exceeds R10 billion annually, flowing into social services, education, healthcare, and community development.

Why faith-based philanthropy endures

Religious giving has structural advantages that make it extraordinarily durable:

• Consistency: Tithes, offerings, and regular contributions create predictable resource streams that most nonprofits can only dream of.
• Infrastructure: Deep community networks and volunteer capacity that have been built over decades or generations.
• Trust: High levels of legitimacy, especially in marginalised communities where formal institutions have failed or never reached.
• Holistic approach: Recognition that wellbeing is multidimensional. It’s spiritual, physical, economic, and social, rather than the siloed approaches that fragment much of development work.

Long-term presence: Faith institutions often outlast governments, NGOs, and development programmes, providing continuity that matters for sustainable change.

The Challenges That Can’t Be Ignored

But I’d be dishonest if I didn’t acknowledge the risks. The research is clear about them:

• Lack of transparency and limited financial reporting in many faith institutions. 
• Governance weaknesses and power concentration, often without adequate accountability mechanisms. 
• Theological constraints that may limit work on sensitive issues like reproductive health or LGBTQ+ rights. 
• Competition and duplication among institutions serving the same community without coordination.
• Paternalism, when giving reinforces dependency or comes with conditions that disempower rather than enable.

What “good” looks like

The report offers best practices that strengthen faith-based giving without stripping it of identity:

• Interfaith collaboration on shared social challenges, recognising that cooperation doesn’t require theological agreement.
• Professional management and separation of worship from charitable operations, bringing rigour without losing spiritual foundation.
• Partnership with secular nonprofits and government, leveraging complementary strengths.
• Deliberate empowerment focus that builds agency rather than dependency.
• Stronger transparency and accountability, including audits and public reporting.

The examples in the full report illustrate how faith networks can extend reach into communities that formal nonprofits struggle to access, if we’re willing to engage them as partners rather than dismiss them as traditional or unsophisticated.

3. Crypto and Digital Tools: The Transformation of How Giving Moves

Digital transformation isn’t just a fundraising upgrade. It’s changing the fundamental mechanics of trust, speed, cost, access, and increasingly, donor identity itself.

Over $1 billion in cryptocurrency was donated to nonprofits in 2024, with Bitcoin representing 64% of known crypto donations. Forecasts suggest continued growth in crypto philanthropy, situated within broader shifts like the massive scale of stablecoin transaction volumes in 2024.

Why crypto matters to philanthropy

The report highlights five primary drivers:

Tax efficiency: In certain jurisdictions, donating appreciated crypto assets can be more tax-effective than converting to cash first.

Lower transaction costs: Compared to traditional payment rails, especially for cross-border transfers.

Global accessibility: Independent of borders and banking access, enabling direct giving to organisations or individuals anywhere.

Transparency: Blockchain records create audit trails that traditional systems can’t match.

Generational alignment: Strong appeal to Millennials and Gen Z whose lives are already digitally native.

The risks are real

But let’s be clear about the concerns:

• Volatility prompts many nonprofits to convert crypto immediately to fiat currency, which undermines some of the efficiency gains.
• Complexity and regulatory uncertainty create barriers, especially for smaller organisations without dedicated technical capacity.
• Environmental concerns linked to energy-intensive mining in some blockchain systems.
• Fraud and due diligence challenges tied to pseudonymity and the difficulty of verifying donor identity or source of funds.
• Limited reach in lower-tech contexts, including much of the Global South where digital infrastructure remains inadequate.

Beyond crypto: a broader digital giving ecosystem

The transformation extends beyond cryptocurrency:

• Mobile giving: Mobile money platforms enabling frequent small contributions from people previously excluded from formal philanthropy.
• Crowdfunding: Mobilising resources quickly for specific needs, democratising who can raise funds and from whom.
• AI-enabled philanthropy: Donor targeting, predictive analytics, and automated reporting that improve efficiency and personalisation.
• Blockchain applications beyond currency: Transparent supply chains, identity verification, smart contracts, land records—tools that address trust deficits in ways that matter for development outcomes.

For South Africa, the position is balanced: our fintech infrastructure creates real opportunity, but the digital divide remains a serious risk. Digital tools could expand participation, or further concentrate power among those already connected. The question is which future we design for.

4. Gen Z and Millennials: Redefining the Meaning of “Philanthropist”

The greatest wealth transfer in history isn’t a future event, it’s happening now. Millennials and Gen Z will move from holding 3% of global wealth to approximately 60% as inheritances accelerate, with an estimated $84 trillion transferring through 2045.

But the transformation isn’t only financial. It’s philosophical. These generations are redefining what it means to be a philanthropist, how giving happens, and what legitimacy requires.

How younger generations give differently

The behavioural and identity shifts are clear:

• Activist identity over donor identity: Many prefer “giver,” “advocate,” or “changemaker” over “philanthropist,” rejecting the paternalism embedded in traditional terminology.
• “5 Ts” engagement: Time, talent, treasure, testimony, ties: recognition that contribution extends far beyond writing cheques.
• Issue-first giving: Driven by alignment with mission more than loyalty to institutions or brands.
• Tech-forward behaviours: Social media advocacy, online giving, peer-to-peer fundraising as natural expressions of values.
• Greater comfort with visibility: Using public giving to amplify impact rather than maintaining traditional donor anonymity.
• Earlier starts: Reported averages around 18 for Millennials, 14 for Gen Z – learning to give before they have significant wealth.

Even with current financial constraints, participation is high. Many younger donors give frequently, even if at smaller amounts. The implication is clear: engagement isn’t the limiting factor. Mechanism, trust, relevance, and community are.

What this means for nonprofits and funders

The guidance is practical:

• Adapt communications for social-first, mobile-first environments where attention is fragmented and trust is earned through consistency, not credentials.
• Offer diverse participation beyond money: volunteering, mentorship, advocacy, skills, recognising that younger generations want to contribute in multiple ways.
• Demonstrate impact and transparency, because younger donors research before they give and expect evidence that resources create real change.
• Build community and belonging among givers, recognising that giving is increasingly a social act performed in networks.
• Use language of justice, systems change, and agency, avoiding paternalistic framing that positions donors as saviours and communities as passive recipients.

South Africa: a faster shift, with real constraints

Because South Africa is a young country demographically, these generational trends may shape our philanthropic landscape sooner than in ageing societies. But we can’t ignore the constraints: unemployment, economic pressure, emigration, and digital exclusion.

The opportunity is to design giving models that are inclusive of young people’s realities, not only their ideals. To support youth-led movements and organisations in ways that strengthen agency and voice. To recognise that the next generation of South African philanthropists may look very different from current wealth-holders, and that’s not a problem to solve but a shift to embrace.

What Ties These Forces Together

Diaspora giving, faith-based systems, crypto rails, and Gen Z values may look like separate phenomena. But in the research framing, they’re connected by deeper shifts:

• From institution-led to network-led giving: Power flowing through relationships and trust networks rather than formal structures.
• From transactional charity to identity, justice, and participation: Giving as expression of values and solidarity, not just resource transfer.
• From slow, compliance-heavy pipelines to direct, fast, and relational flows: Technology and networks enabling connections that bypass traditional intermediaries.
• From a narrow definition of “philanthropist” to a broader ecosystem of contributors and co-creators: Democratising who gets to participate in shaping change.

These forces don’t replace traditional philanthropy. But they fundamentally change what “effective” and “legitimate” look like. And if you’re planning for the next decade without accounting for them, you’re planning based on a world that’s already disappearing.

If You’re Planning for the Next Decade, Don’t Plan Without the Full Picture

The trends in philanthropy our report has outlined aren’t coming. They’re here. The question is whether we’re paying attention, whether we’re adapting with intention, and whether we’re willing to share power with the new actors entering the space.

Because ultimately, the future of philanthropy isn’t something that happens to us. It’s something we’re building together, with diaspora communities, faith leaders, digital natives, and younger generations who refuse to accept the limitations of traditional approaches.

The families and institutions who understand this, who see these emerging forces as partners rather than threats, are the ones whose impact will compound over decades. Not because they resisted change, but because they helped shape it.

Download the complete 2025/2026 Global Philanthropy Research Report

About the Author

Reana Rossouw is the founder of Next Generation Consultants, a leading impact advisory firm specialising in social innovation, sustainable development, impact investing, and impact management and measurement (IMM). With more than two decades of experience, she supports organisations across the social, solidarity, and impact economies to design strategies, measure impact, and improve performance. For more evidence of our work, visit our website or download our latest research report on trends and insights for the social, solidarity and impact economies in South Africa.Read more on this topic in our Social Innovation Knowledge Hub.