Next-Generation Donors Find Their Way in Philanthropy
Nonprofits have often looked for ways to cultivate and connect with the next generation of donors. New research that studied young philanthropists at family foundations offers some clues on how other nonprofits can engage their next gen donors.
The research focuses on work nonprofit consultancy 21/64 conducted through its Grand Street program, which started in 2003 and focused on next-generation donors. The term can refer either to younger donors who will inherit wealth or are expected to take part in family-driven philanthropy or to up-and-coming donors between the ages of 18 and 40.
“There really hadn’t been spaces for the next generation to convene on their own,” Sharna Goldseker, executive director at 21/64 said of the Grand Street program, which initially brought together a group of next-gen donors, mainly in their 20s. “It was a significant shift in the story of philanthropy.”
At the time, research about the impending “Great Wealth Transfer” had just begun. Financial experts have since estimated that younger generations stand to inherit as much as $72 trillion from Baby Boomers over the next 20 years.
The new report looks at 20 years of the Grand Street program, which is structured as a series of off-the-record retreats that equips next-gen donors with tools and advice for carving out their own path in the philanthropic community.
The program is named after the historic Jewish immigrant settlement on the Lower East Side of New York City. While Grand Street’s first cohort identified as Jewish, subsequent classes have been a mix of donors from all backgrounds.
The study showed that 83 percent of participants, which include a mix of Millennials and Gen Xers, became involved with or continued their involvement with family foundations. Almost all participants — 94 percent — said being a part of the program empowered them as philanthropists.
But not all participants found that their families were ready to embrace them fully as philanthropists. The report notes that several of these individuals established their own foundations or donor advised funds instead, pursuing philanthropy on their own terms.
“Sometimes the next generation is looked at as an extension of their family,” Goldseker said. “We were taking a risk to invest in people hoping they would grow into the philanthropic donors we and they hoped they would become.”
Goldseker hopes the report will help guide other organizations with next-gen programs. The report offers several recommendations:
- Invest in individuals during their formative years to build self-confidence and a sense of agency.
- Empower individuals to define their own values and vision, enabling them to appreciate the importance of their ideas.
- Offer facilitation, not events. Create opportunities for self-reflection, learning, and transformational insights.
- Create tools that catalyze conversations and provide the necessary skills, tools, and support to help participants create meaningful and lasting impact.
To learn more, read the study.
Donating and Sharing Go Hand-in-hand for Gen Z Donors
Gen Z donors were 10 times more likely to announce their charitable donations on social media platforms like TikTok or Instagram than Boomers, according to a new study by crowdfunding platform GoFundMe.
The survey included more than 1,000 participants. The urge to share stems from the idea that publicizing donations can help prod others to make a gift, a sentiment held by 46 percent of Gen Z participants. Forty-one percent of Gen Z donors said that social media posts inspired them to donate or research a cause, compared to 24 percent of Millennials, 20 percent of Gen X and 8.5 percent of Boomers.
Half of Gen Z participants were also more likely to post about causes or fundraisers at least once weekly compared to older generations like Millennials and Gen X, who were more likely to share on a less frequent monthly basis. Eighty-eight percent of Boomers reported occasionally, rarely or never sharing any causes or fundraisers on social media platforms.
A Tough Economy Hasn’t Dampened Generosity
Social donors are more generous despite a tough economic environment, according to a new study by OneCause, a nonprofit fundraising platform.
Over a third of social donors — or those who participate in fundraising events such as galas and auctions — reported increasing their gifts this year by an average of 15 percent. The study looked at 1,036 U.S. donors who either donated or attended a fundraising event, like a golf tournament or sponsored walk, within the past year.
Donors who attended auctions were the most likely to express interest in becoming regular supporters. Eighty-three percent of auction donors surveyed said they had interest in making annual gifts, while 64 percent said they were considering monthly donations.
The average donation by a Gen Z supporter this year increased by 10 percent to $197. Overall the annual average gift amount by Gen Z has risen to $1,155, from $502 in 2022.
