How Nonprofits can Embrace Younger Philanthropists

Gen Z and Millennials continue to influence today's economic trends in various industries, including philanthropy. Since the start of the COVID-19 pandemic, Zelle reports that about 75% of Millennials offered monetary support to family, friends or other philanthropic causes — more than other generations.

Younger generations are proactive in organizing philanthropic initiatives, mainly in part thanks to social media and crowdfunding resources. The spirit of generosity surrounding Millennials is an excellent opportunity for charitable organizations to harness engagement from a new generation of impact-driven people looking to help make deeper investments and sweeping changes to current systems.

Nonprofits who fully engage younger generations in philanthropy will take a concerted and collaborative approach. Those who properly engage with the Gen Z and Millennial cohorts of donors can create financial growth and allow younger generations to serve as co-creators who are invested in a shared vision of the future.

Here are some ways nonprofits can further focus on embracing a younger donor base for their philanthropic efforts:

Foster Relationships: Younger generations want to build authentic relationships with the organizations they support. Instead of making an annual donation, they prefer to be part of the process or feel they are contributing more meaningfully. This is why they develop close relationships with the organizations that inspire and appeal to their interests. The Millennial Impact Report shows how Millenials are most likely to donate their money when they're motivated by an organization's mission. A whopping 90% reported they were spurred to give back when they connected with the mission's message and agreed they would not donate if they did not trust the organization. Millennials also play a valuable role as ambassadors by sharing information about the organization on social media, which is vital for nonprofit organizations that need support.

Transparency: Younger generations also like to witness the direct impact of donations. Organizations that work with younger donors should be prepared to involve them in transparent tracking of their contributions. In other words, they should show how their charitable donations turn into measurable results. Many people want to learn about the organization's impact on change and review data showing their projects' success. Since next-generation donors are often educated on the issues they care about, they desire transparency and communication from organizations to ensure they're accountable. Nonprofits should consider creating opportunities for younger donors to become more involved. Some organizations offer philanthropic education programs like groups that allow donors to learn from their peers about integrating philanthropy into their lives.

Easy Sign-Ups: Easy access to getting involved in nonprofits helps these philanthropic organizations grow their donor base. While first-time engagement is relatively easier to gain in the form of liking a social media post, volunteering or signing a petition, organizations seek to extend that participation. Easy sign-ups and continued access to organization events, drives and learning opportunities are key to driving more engagement.

Heighten the Narrative: Potential donors from the younger generations relate to social issues that impact their lives. Organizations seek to reflect a narrative in a humanistic approach through articles, videos and photos. If younger generations can see themselves in the shoes of someone they'll be supporting through donorship, they have better chances of taking action and donating to a worthy cause. Organizations will also want to share their opinions on social issues and examples of their efforts to progress. 

Cross-sector Collaboration: Working with other organizations can help expand the messaging behind a philanthropic cause. Collaborating across sectors can create widespread positive awareness and impact in the areas where nonprofits seek to create change. Often, young donors want to see organizations partner to create actionable approaches to finding better social-issue outcomes.

As younger generations reshape the way philanthropy approaches change, they become the next generation of board leaders, activists and major donors that continue to challenge convention and raise the limit for charitable giving to become an everyday part of life. It can strengthen the philanthropic sector in the long run and better prepare for a more collective and socially aware future.