Nonprofit leaders and fundraisers should get to know their next generation of donors, philanthropy experts Sharna Goldseker and Michael Moody say in their new book, Generation Impact: How Next Gen Donors Are Revolutionizing Giving.
The reason? Many wealthy Generation X and millennial donors are not waiting until they retire to give big or get involved in philanthropy. They are doing it now. And for those who can’t yet write a big check for charity, it is likely they will in the near future.
Many of these younger philanthropists received inheritances, and some have created additional or new wealth of their own. This means they are giving large amounts earlier, and barring major economic catastrophe, they likely will give to charitable causes much longer than their parents or grandparents have done.
Even those not giving big donations right now are getting involved in charities as hands-on volunteers or as vocal representatives of their families’ foundations. Donors of these generations want to give to fewer charities, and they want to be more active in the causes they support. They want to be seen as a nonprofit’s partner, the authors say.
Ms. Goldseker, an affluent Gen X donor who founded 21/64, a nonprofit that advises young philanthropists, says many fundraisers and nonprofit leaders regard these affluent donors as occupants of philanthropy’s version of “the kid’s table.” That’s a big mistake, she says.
The smarter move, says Mr. Moody, of the Johnson Center for Philanthropy at Grand Valley State University, is to get the next generations involved in your charity now.
Ms. Goldseker and Mr. Moody offered The Chronicle the following tips about what to keep in mind when cultivating affluent Generation X and millennial donors, and how to make your organization attractive to them.
Help them get involved.
Offer ways for donors in their 20s to 40s to serve on your charity’s board, help your team develop new programs, solve a problem, or assist with strategic planning or analyzing your nonprofit’s outcomes. Involvement like this helps younger donors better understand the charity, which could lead to a new or larger gift. It gives them information they can relay to their family’s foundation — perhaps with a grant recommendation.
Make your campaign feel more intimate.
Younger donors usually are not attracted to institutions that conduct large fundraising campaigns because they perceive a big gap between making a gift and seeing results.
One way to make a campaign feel more directly beneficial, the authors suggest, is to dedicate part of the drive to a specific program that donors can support with money and time. This approach could encourage them to help raise money, too.
Family legacy matters.
Next-generation donors involved in their family’s foundations often want to advance their parents’ philanthropic legacy and may want their own grant making to support that legacy. Nonprofit leaders and fundraisers can build on that interest to get to know the next generation.
If a family has supported a cause for many years, charity leaders should ask to be introduced to the younger adult members of that family and take the time to get to know them. If fundraisers don’t make that effort, they could end up losing the family’s support once the older generation is gone.