“Our donors are aging-out.” “We need to attract younger donors.” “We need to be on Facebook.” These are some of the common refrains I hear from nonprofits. It seems that everyone is trying to bring younger donors into the fold. But what does younger mean? Does it mean connecting with the Baby Boomers, creating a gateway to the Millenials, or both? And, how do you do it? Should you buy a list of 50 – 60 year olds, or should someone on your staff become savvier with email marketing and social media?
A new study, by Convio, Edge Research and Sea Change Strategies, The Next Generation of American Giving: A study on the contrasting charitable habits of Generation Y, Generation X, Baby Boomers and Matures, answers these questions, and more. See an overview of the findings below.
Also, register today for a FREE Care2 webinar on this topic on May 25 at 2:00pm EST. Our expert guests will include Vinay Bhagat, Founder and Chief Strategy Officer of Convio; Steve DelVecchio, Senior Director, Direct Response of AARP Foundation; and Milo Sybrant, Interim Managing Director of New Media at Amnesty International USA.
Back to the study…First, it’s important to define generational segments. In this study, Matures are defined as Americans born in 1945 or earlier. Baby Boomers are defined as those born between 1946 and 1964. Generation X is defined as those born between 1965 and 1980. Finally, Generation Y is defined as those American born between 1981 and 1991. The study focuses on individuals who donated at least $1 to one charitable organization within the last 12 months (excluding school and place of worship).
Key findings:
This probably won’t come as a surprise, but the study shows that there are differences in giving, including the propensity to give, how gifts are made, and how different generations of donors learn about charities.
First, Matures (there are an estimated 39 million of them) tend to be more loyal in their giving. They also give the most money (a total of $1,066 on average per year). However, their giving is spread among more charities, so the average gift is not discernibly higher than those of the other generations. Further, Matures represent a shrinking donor pool (I know you’re tired of hearing this but it’s true.) And thus, they may be a less attractive segment to target. In terms of donation channels, Matures are more likely than any other generation to give and learn about charities via postal mail.
Next, Boomers (there are an estimated 78 million of them) are double the size of Matures. For this reason, they represent a highly attractive donor population. Unlike Matures they tend to look at giving or philanthropy as an investment opportunity. Therefore, they are more likely to vet a charity before donating. The average annual Boomer gift is a respectable $901. In terms of channels, “giving by mail is still prevalent with Boomers but at a significantly lower rate than Matures.”
Third, Generation X (there are an estimated 62 million of them) also represent a larger donor pool than Matures and thus, may be an attractive donor segment for nonprofits to target. 58% of them give and “not surprisingly, the incidence of having given on a website increases with younger populations to the point that for Gen X is almost equal to mail.” However, it’s interesting to note that telemarketing was also viewed as an acceptable solicitation channel for this segment.
Finally, Generation Y (there are an estimated 51 million of them) represent smallest donor pool. Only 56% of them give. This is not surprising, due to the fact that these younger folks are new to the workforce and therefore less likely than other generations to have disposable income. Unlike Matures, Boomers or Gen X, direct mail does not register for Gen Y. Instead, they are likely to hear about charities via mainstream media, word of mouth, school and peer-to-peer events.
You’re probably wondering if Facebook is an important communication channel for any of the generational segments. According to the study, the answer is – somewhat. However, websites and email still rank as more important!
Another interesting finding of the study is that donors in all four generations said, “The most appropriate form of solicitation was indirect via a friend.” This confirms what many fundraisers already know - determining who makes "the ask" is just as important as making it. It also means that all nonprofits need to get better at leveraging their donors to fundraise on their behalf.
*Jocelyn Harmon is the Director of Nonprofit Services for Care2.
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