How Different Generations Give - Four Things You Need to Know

The philanthropic landscape is evolving rapidly, and fundraisers are continually adapting to overcome industry challenges. Understanding each generation's giving, discovery, and stewardship preferences can help nonprofit professionals achieve better fundraising results. As wealth transfers between generations, nonprofits can tailor their strategies to meet each age group's preferences and connect with donors in their preferred ways 

Understanding Generational Giving Preferences

With an estimated $84 trillion expected to transfer from Baby Boomers to their younger counterparts over the next 30 years, nonprofits have an unprecedented opportunity to connect with the next generation of donors! Tailoring fundraising strategies to different generational preferences can help organizations better connect with their supporters and overcome some of the challenges the nonprofit sector is facing, such as declining donor numbers and retention rates. In addition, engaging donors the way they prefer—whether on social media, at in-person events, or through personalized e-newsletters—can foster a stronger connection and engagement with your cause.

1.    Gen Z: Amplifying Impact

Gen Z, the generation born between 1997 and 2012, is proving to be a powerful force in the world of philanthropy. This generation is deeply connected to causes they care about and is eager to make a difference, with 51% of donors also volunteering their time at the organizations they support. This is the second-highest volunteer rate among all generations, showcasing Gen Z's commitment to hands-on involvement.

Additionally, Gen Z shows a strong interest in peer-to-peer fundraising, with 56% willing to fundraise for the organizations they support. This presents an exciting opportunity for nonprofits, as peer-to-peer fundraising can dramatically expand your reach and impact!

Gen Z's philanthropic enthusiasm extends to in-person and hybrid fundraising events as well. They’re the generation most excited for fundraising events and the generation that most enjoys hybrid and virtual event options. This preference for in-person connection, combined with their comfort with technology (evidenced by their leading use of digital wallets for donations), paints a picture of a generation that’s both tech-savvy and community-oriented.

To fully harness Gen Z's potential, nonprofits should offer opportunities for DIY and peer-to-peer fundraising, empowering these ‘philanthro-kids’ to champion and advocate for the nonprofits they support. By tapping into Gen Z's passion and leveraging their preferred engagement methods, nonprofits can cultivate this new generation of committed philanthropists.

2.    Millennials: Meet Them Online

Born between 1981 and 1996, Millennials are an incredibly digital generation. This generation primarily learns and engages with nonprofits through an organization's online platforms, such as their website and social media. Their perception of an organization is significantly influenced by the nonprofit's online presence and engagement. 

Millennials want to know the real-world impact their support has. They value client testimonials and prefer nonprofits to have an active social media presence that showcases their work and impact.

Continued support is crucial for Millennials. This generation is known for the number of subscriptions they hold, whether it’s for a streaming platform or grocery delivery service, and their giving preferences are no different! Millennials don't want to just make one-off contributions. 65% of this generation prefers to donate multiple times a year to their preferred charities! 

To effectively engage Millennials, nonprofits should focus on recurring giving programs. This generation is comfortable with subscription-based or recurring giving models and values the ability to break down larger donations into smaller payments. A strong online presence is important to Millennials, so ensure your website is regularly maintained and your social media channels regularly display content showing your organization's impact. Additionally, nonprofits should share impact stories and program updates monthly to demonstrate the tangible difference that Millennial donors and volunteers are making and to keep them connected to the mission.

3.    Gen X: Involvement and Influence

Born between 1965 and 1980, Generation X is a force to be reckoned with when it comes to charitable giving and philanthropic support! Gen X has an undeniable commitment to the causes they believe in and boasts an impressive philanthropic resume.

Members of Generation X are the most likely to serve on a board or committee. This engagement goes beyond financial support, signifying a deeper level of involvement and commitment to the causes they care about. Over 60% of Gen X would be willing to participate as peer-to-peer fundraisers, contributing to the growth and success of the organizations they support.

Volunteering is another area where Gen X shines. Driven by passion for a nonprofit’s mission, a personal connection to the cause, and the belief that they’re making an impact, they’re more likely to donate their time and skills than other generations.

Gen Xers are also extending their influence beyond volunteering and financial contributions. They’re the generation most likely to attend a fundraising event, share a nonprofit’s social media posts, and even motivate their family and friends to join the cause!

To connect with members of Gen X, fundraisers can actively recruit Gen Xers to serve on boards and committees, leveraging their extensive networks. Gen X's enthusiasm for peer-to-peer fundraising should be harnessed by providing them with the necessary tools to fundraise on behalf of your organization. It’s also important to recognize this generation’s increasing preference for digital payment methods. Gen X is the second most likely generation to donate with a digital wallet. Fundraisers can streamline the donation process by incorporating digital wallet options. By understanding and catering to these preferences, organizations can effectively engage Gen X and maximize their fundraising potential.

4.    Baby Boomers: Financial Transparency

Baby Boomers, born between 1946 and 1964, are key supporters of nonprofit organizations. To engage this group, fundraisers should focus on transparency and monthly email communications that don’t contain fundraising asks. This generation values accountability and wants to see their funds making a real impact!

Baby Boomers enjoy being in the loop with regular updates from the nonprofits they support and are the generation most likely to be subscribed to a nonprofit’s email newsletter—68% are subscribed to a nonprofit's email list. Fundraisers can use multi-channel engagement tools like emails, social media, and direct mail to keep them connected. Members of this generation are most excited to read about program updates and beneficiary stories.  

Baby Boomers appreciate transparency regarding an organization's fund allocation and value low or no organizational overhead. To build Baby Boomer trust, ensure financial documents or annual reports are readily available on your website and regularly talk about the important work your staff does—this can help you gradually overcome negative assumptions about overhead.

To build a lasting relationship with Baby Boomers, focus on three key strategies: maintaining transparency, engaging members of this generation with regular non-fundraising communication, and sharing powerful stories of impact. By doing so, you empower Baby Boomers to be active participants in your mission, ensuring their continued support.

Conclusion

Across all generations, there are universal preferences and areas of opportunity that are covered in the Omni Generational Section of the Generational Giving Report. This guide is designed for the team of one or the busy fundraiser looking to prioritize their work. Download the rest of the report here! 

By tailoring fundraising strategies to each generation, nonprofits have the opportunity to build stronger, more meaningful relationships with donors of all ages.