If the average life expectancy in the United States is 78, then you might consider my life to be half-over. Unless you don’t want to see me curled up in a fetal position crying. But, as my children have shown me, I must nonetheless get up, wipe my nose on my sleeve, and keep it moving. This adage also applies when it comes to considering how best to use my financial resources while in the land of the living. Fortunately, I’m not alone.
A recent report titled, “#NextGenDonors” examines the giving trends of major donors between the ages of 21 to 40. Commissioned by the Johnson Center at Grand Valley State University and 21/64, this report describes how this cohort is poised to inherit over $40 trillion in wealth, examines their ideologies on giving, and predicts how 21st century giving will be impacted by emerging donors of the nation’s most affluential families. While this report is useful for nonprofits with access to high-net worth individuals, the lessons gleaned from this research can also be applied when considering how to identify the giving capacity of young people who are low- and medium-dollar donors.
- Know Your Donors. When was the last time you looked at your donor list? Better yet, how often do you monitor the response rate of either your direct-mail or email campaign? If you never thought to segment your donor list, there’s no time like the present. Dividing your donor list by age, giving history, and giving method may give you some insight into how younger (and older people) contribute to your effort; allowing your fundraising staff the insight needed for more targeted individual appeals.
- Unearth Your Board. Fundraising is a key duty of any nonprofit board member. This is especially true when employing strategies to recruit and engage younger donors. Consider asking your board to identify a few of their younger colleagues to recruit for board membership. Or, ask your board to invite at least five young people to sit on the host committee in preparation for your next event. Research has consistently shown that younger people desire active roles when it comes to supporting the nonprofit sector so providing opportunities for direct engagement is critical.
- Cast Wide Your Net. When identifying next generation donors, diversity is often overlooked. As was the case in the #NextGenDonors report, the cohort surveyed and interviewed was overwhelmingly white and female. With the U.S. population expected to become a “majority-minority” by the year 2043, nonprofits must begin to think more broadly about how to engage a variety of communities as donors (rather than recipients). Diversifying your board and management staff are a few ways to begin this important work.
What strategies has your nonprofit identified in cultivating the next generation of donors?