Engaging the Next Generation of Donors

If your nonprofit’s fundraising efforts have primarily focused on Baby Boomers, it might be time to rethink your strategy. While Boomers currently represent the largest group of charitable donors, younger generations are poised to inherit significant wealth. According to consulting firm Cerulli Associates, Americans born between 1965 and 1996 (Generation X and Millennials) are expected to inherit $84 trillion by 2045, with at least $16 trillion being transferred in the next decade.

Generation Z, although currently with fewer financial resources, is passionate about giving back. More than half of Gen Z volunteers for the charities they support financially. This makes them a valuable demographic to engage. Here are some tips for reaching Generation X, Millennials, and Generation Z.

Behavior by Demographic

Research shows that Gen Xers tend to give consistently to causes they trust, often through recurring donations. Winning their support could mean securing automatic bank account or credit card withdrawals. As a relatively wealthy demographic, Gen Xers are also more likely to attend high-ticket fundraisers and participate in charitable auctions.

Millennials are also strong supporters of recurring giving programs. As digital natives, they frequently use websites, donation apps, and engage in peer-to-peer fundraising. According to marketing agency Nonprofits Source, 58% of Millennials follow charities on social media. However, they may have less time to volunteer or attend events due to their child-rearing responsibilities.

Gen Z, the youngest generation of potential donors, tends to give through micro-donations via text or social impact purchasing. They are also likely to support causes through activism and volunteer work. Although only 28% donate money to charity, 64% support causes through other means.

Media Preferences and Workplace Giving

When launching a new campaign, it’s essential to know your social media platforms. Gen X and older Millennials are the biggest users of Facebook and LinkedIn, while younger Millennials and Gen Z favor Snapchat and TikTok. Emerging platforms like Bluesky and Threads, as well as new media options like podcasts, are also worth exploring. Pew Research found that 67% of adults under 30 and 58% between ages 30 and 49 listen to podcasts.

Gen Xers and Millennials are the majority of employees requesting corporate matching donations and participating in corporate volunteer programs. According to Double the Donation, 56% of Gen Xers and 48% of Millennials prefer to donate through workplace giving programs. Publicizing companies that match employee donations and reaching out to local employers about setting up corporate volunteer programs can be beneficial.

Your Nonprofit’s Niche

Generational differences also exist in the types of nonprofits these groups typically support. Charity Navigator reports that Gen X prefers community development, education, and disaster relief organizations. Millennials and Gen Z are more likely to support environmental, civil rights, and mental health nonprofits. However, individual preferences can vary widely within each generation.

No matter your nonprofit’s niche, it’s crucial to strategize the best ways to reach different generations. Even if the youngest adults are not making large donations now, engaging Gen Z can nurture relationships that may lead to significant contributions in the future.