For years, the experts have talked about the importance of a strategy to reach Gen Z. Unfortunately, Gen X and Millennials are often overlooked, even though these are the generations that will provide a bulk of your nonprofit’s support in the coming years.
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Generation X, often referred to as the ‘forgotten generation,’ is anything but forgettable when it comes to philanthropy. These donors are at the peak of their careers and financial stability. Gen Xers are in a prime position to contribute significantly to causes they care about. A study found that Gen X donors give an average of $732 annually across four charities.[i] Their pragmatic approach to giving, combined with a deep sense of social responsibility, makes them a key demographic for nonprofits.
Meanwhile, Millennials are coming into their own as influential donors, giving an annual average of $481,[ii]driven by a desire to make a tangible impact on the world. Known for their tech-savviness, social consciousness, and preference for authentic, cause-driven narratives, Millennials are not just shaping the future of philanthropy; they are actively reshaping it with each passing day.
The importance of these generations extends beyond their financial contributions. Gen Xers and Millennials bring fresh perspectives, innovative ideas, and a strong preference for digital engagement, challenging nonprofits to evolve and adapt. At World Concern, we’ve had several donors in these generations who desire to volunteer in an impactful way that aligns with their professional capabilities. Their influence is also seen in the rising trends of social media fundraising, peer-to-peer giving, and a demand for transparency and measurable impact in their philanthropic endeavors.
While both Gen X and Millennials are pivotal in the philanthropic landscape of 2024, their giving behaviors exhibit distinct differences shaped by their unique life experiences and cultural influences.
Gen X, often characterized by their pragmatic approach, tend to be more strategic and reserved in their giving. They value discretion and are likely to be influenced by the practical outcomes and efficiency of their donations. This generation, having witnessed significant economic and technological changes, shows a preference for direct, impact-driven philanthropy.
Millennials, on the other hand, are driven by a deep sense of social responsibility and a desire for transparency. They are more inclined towards causes that align with their personal values. They tend to favor organizations that offer engagement and storytelling. Social media and peer influence play a significant role in their giving patterns, with a strong emphasis on shared experiences and community-based initiatives. Understanding these nuances is key for nonprofits aiming to engage with both generations in their fundraising efforts effectively.
Reaching Gen X and Millennial donors is not without challenges. Andrew Olsen, Sr. Vice President at DickersonBakker explained, “Unlike donors who belong to the Boomer or Greatest generations, these younger donors are less likely to say that they support a specific organization or nonprofit brand, instead preferring to align with a broader cause.” Your organization will need to be transparent and show impact to close the loyalty gap with these generations.
How to Reach Gen X and Millennial Donors
Key to your efforts to grow the number of Gen X and Millennial donors is to understand that you’ll use different channels to reach them. You’ll also want to understand how donors in each of these two generations respond.
Embracing Digital and Social Media
To effectively engage Gen X and Millennials, nonprofits must recognize the centrality of digital platforms in their lives. Optimizing your online presence for user-friendliness and mobile responsiveness is crucial. A robust social media strategy utilizing platforms like Instagram, Twitter, and LinkedIn can significantly enhance engagement. These channels are perfect for sharing impactful stories, updates, and calls to action. Additionally, digital campaigns such as email marketing, peer-to-peer fundraising, and crowdfunding resonate well with these tech-savvy generations, offering them convenient ways to contribute and share.
Prioritizing Transparency and Demonstrating Impact
Both Gen X and Millennials value transparency and are keen to see the tangible impact of their donations. It’s essential for nonprofits to communicate openly about how funds are being utilized. Regular updates, success stories, and detailed reports can help in showcasing the direct outcomes of their contributions. Engaging donors in the journey of their impact through volunteer opportunities or interactive platforms fosters a deeper connection with the cause.
Offering Flexible Engagement Opportunities
The desire for meaningful engagement beyond financial contributions is a hallmark of both Gen X and Millennials. They appreciate having a variety of ways to engage with a cause. Nonprofits can cater to this preference by offering diverse volunteering opportunities, advocacy initiatives, or educational events. Additionally, enabling supporters to fundraise on behalf of the organization taps into their networks and amplifies reach. Skills-based volunteering, in particular, can be a significant draw, allowing donors to contribute their professional expertise to the cause.
Personalizing Communication and Appeals
A personalized approach in communication is vital to resonate with Gen X and Millennials. Utilizing data to segment your audience and understand their preferences allows for more targeted and relevant messaging. Tailored communication that aligns with their values, aspirations, and motivations significantly increases engagement and support.
Fostering Community and a Sense of Shared Purpose
Creating a sense of community and shared purpose is particularly appealing to Gen X and Millennials. They are drawn to causes that provide a sense of belonging and collective impact. Establishing community spaces, either online or through in-person events, offers donors a platform to connect and share experiences. Emphasizing how each contribution is part of a larger movement reinforces the importance of every donation and strengthens the bond with the cause.
Organizations can build strong relationships with these crucial donor cohorts by employing these strategies, ensuring sustained support and a lasting impact on their missions. Andrew Olsen added, “The expectations that Gen X and Millennial donors have for the nonprofits they support will require organizations to change in significant ways over the next decade. Those who do make these changes stand to gain significant long-term support. Those who resist the need to change will likely be relegated to managing long-term revenue declines.”
[i]https://www.nptechforgood.com/2023/08/04/6-generations-of-giving-who-gives-the-most-and-how-they-prefer-to-give/
[ii] Ibid.
