4 Key Findings to Benefit Nonprofit Fundraising Planning from The Next Gen Donors Report

Towards the end of 2012, I wrote about boosting nonprofit fundraising and engagement results by targeting 3 key Demographics and one of those demographics were the younger generation. I had already featured research from the Millennial Donors Report Part 1  (and Part 2) and The Millennial Impact Report 2012 which also identified younger donors (referred to as Millennial Donors) as a growing demographic. According to these reports, this younger demographic is engaged and support causes they personally care about which nonprofit organizations should be paying attention to so they can attract them. New research by 21/64 and the Dorothy A. Johnson Center for Philanthropy titled the Next Gen Donors report looks at how both Generation Y/Millennial (born between 1981-2000) and Generation X (born between 1964-1980) shape present and future philanthropy.

The national online survey was conducted in 2012 and polled 310 young donors. The results included some interesting insights for nonprofits to consider when developing fundraising plans that target this demographic of future philanthropic leaders. The four key findings include:

1. Values. Interestingly, despite the common misconception that young people have a sense of entitlement (especially if they come from wealth) the results of the survey showed the contrary and that the importance of reasons for engaging in philanthropy included: a) supporting a mission or cause that fits with personal values (avg. 3.8 out of 4); b) fulfilling duty as a person of privilege, to give back to society (avg. 3.4 out of 4); and c) seeing that their contribution would make a real difference and that the organization has a real impact. Seemingly it’s their personal values instilled from their parent and grandparents that drives Next Gen Donors to give and nonprofits are better served appealing to those values to attract this demographic.
   

   image courtesy of nextgendonors.org

2. Impact. Next Gen Donors do not simply give to causes or organizations out of habit to continue a familial legacy, instead they are most concerned about the impact that their contribution has on the causes they support. This is evident by the top strategic components of importance in their personal philanthropy being: a) conducting due diligence & research before deciding whom to support (avg. 3.2 out of 4); b) first deciding philanthropic goals, then searching for potential recipients (avg. 3.1 out of 4); c) fund efforts that address root causes and attempt systemic solutions (avg. 3.1 out of 4); and d) prefer info on organization’s proven effectiveness/measurable impact (avg. 3.1 out of 4). An organization’s transparency on how funds are allocated will ensure that the Next Gen Donor is satisfied with the impact of every dollar.
3. Close Relationship. Through interviewing respondents, the researchers found that Next Gen Donors were not satisfied with simply making financial contributions but also wanted to have a more intimate relationship with the organizations they support. In addition to simply volunteering, many want to offer up their own talent(s) and provide access to their own personal networks. As the report puts it, these donors want to give “their own time, talent, treasure and ties”. Engaging this demographic only as financial supporters may not be as effective as also giving them opportunities to be more involved with the organization or with furthering the cause. The overall result needs to go beyond monetary donations and be more towards building a close relationship.
4. Identity Creation. Many Next Gen Donors are still in the process of figuring out who they are and creating their philanthropic identity. The research found that the main importance of influences on learning and developing personal philanthropy were through: a) Personal experiences as a donor, volunteer, board member etc. (avg. 3.6 out of 4); b) Observations of the philanthropic activities of their parents, grandparents, or other family members (avg. 3.4 out of 4); and c) Personal observations or analysis of the significant need for philanthropy (avg. 3.4 out of 4). It’s at this stage that they are most likely to shape their views and ideals on how they contribute to causes in the future and what kind of legacy they want to leave behind.

The extensive 72-page Next Gen Donors report also delves into many other areas in which nonprofits can gain insight on how to target this important demographic which I will be featuring in future posts.

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Miratel Solutions is a Toronto call centre, eBusiness, and letter shop mail house specializing in professional fundraising services including telephone fundraising, online fundraising, lottery services, donation caging, donation processing and other donor management services. We are committed to our CSR business values in all contact centre services and mail house operations and advancing the missions of the nonprofits we proudly serve.