Amber Wynn

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The Nonprofit Guide to Millennials and Gen Z Philanthropy

The world of philanthropy is in a constant state of flux. We're seeing new trends in how people give to good causes, and it is crucial for nonprofits to remain informed about the latest philanthropic trends, particularly those pertaining to Millennials and Generation Z. 

These two generations are sometimes confused with each other, so let’s clear things up from the get-go. It’s worth noting that different sources indicate different dates, but in general, those born from 1981 to 1996 are considered Millennials, and those born between 1997 and 2012 are considered Gen Zers.

These younger generations have been making substantial strides in philanthropy and volunteerism. Consider these figures.

  • Millennials make up about 25% of the American population

  • 84% of millennials give to charity (about $481 per person per year)

  • 64% of millennials volunteer locally

As for Gen Zers…

  • They make up roughly 20% of the American population

  • 26% volunteer regularly (about $341 per person per year)

  • 44% of Generation Z donate to charity

These two combined make up almost half of the entire United States! So, if you want to make sure your organization gets a slice of this pie, you need to know how to connect with the next generation of donors.

In this article, I explore the developments within the philanthropic behavior of Gen Z and Millennials, shedding light on the prevailing giving trends and volunteering. It’ll also share some practical tips and strategies you can employ to tap into these generations.

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To know how to connect with Millennials and Gen Zers, you need to gain a deeper understanding of the demographic and examine their shared traits and unique characteristics. While they may not be identical, there are some significant commonalities that define these younger donors.

Values and priorities

The Gen Z and Millennial generations share a strong emphasis on values and priorities that set them apart from their predecessors. They often prioritize issues like:

  • Social justice

  • Environmental sustainability

  • Diversity and inclusion 

These values greatly influence their decisions regarding charitable giving and volunteer activities. You don’t have to be a rocket scientist to see how Luckily for us, these values and priorities align closely with the nonprofit world.

Technology use

A defining feature of both Millennials and Gen Z is their remarkable affinity for technology. They are digital natives, having grown up in a world where smartphones, social media, and the internet are the norm (which is especially true for Gen Zers). This tech-savvy nature significantly impacts how they engage with philanthropy, as they heavily leverage digital platforms for information, interaction, and fundraising.

Philanthropic inclinations

Today's young donor exhibits a strong inclination toward philanthropy, driven by their desire to make a positive impact on the world. They are more likely to support causes they are passionate about, sometimes even prioritizing philanthropic efforts over traditional forms of consumption.

Key differences from previous generations

While there are similarities, the Millennial and Gen Zer also stand out from older generations (e.g., baby boomers). They are known for their preference for:

  • Social entrepreneurship

  • A stronger demand for transparency and accountability in charitable organizations

  • A desire for more hands-on involvement in the causes they support

These differences from older donors challenge traditional philanthropic models and call for innovative strategies to engage with next-gen supporters effectively.

Understanding these shared values, tech-savvy behaviors, philanthropic motivations, and distinctive differences is a critical first step in connecting with Millennials and Generation Z in philanthropy.

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As with any donor group, members of Generation Z and Millennials pose both challenges and opportunities. The key for nonprofits is to identify these and use the knowledge to craft a strategy.

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One significant challenge is the inherent skepticism these younger generations have toward traditional nonprofit organizations. They often question how effectively these institutions use their funds and, as a result, may hesitate to commit to long-term donations Transparency and accountability are, therefore, of paramount importance to this group of donors.

Another is their strong desire for direct engagement and impact. They are less inclined to simply write a check and are more interested in actively participating in causes they care about. This poses challenges to organizations that rely on more passive forms of giving.

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One of the most promising opportunities lies in the realm of digital platforms. Millennials and Gen Z are prolific users of technology and social media. Organizations can capitalize on this by utilizing online platforms for fundraising, storytelling, and engagement. Social media campaigns, crowdfunding efforts (raising funds from a large number of people online), and virtual volunteering opportunities (volunteering remotely, using skills online) can effectively tap into the digital-savvy nature of these generations.

Another powerful way to connect with Millennials and Gen Z donors is by personalizing philanthropic experiences. These generations value customized, authentic, and emotionally resonant interactions. Tailoring donation options, providing real-time impact updates, and offering avenues for them to get involved directly can create a sense of ownership and engagement that resonates deeply with them.

Navigating these challenges and embracing the opportunities presented by the distinctive preferences and behaviors of Millennials and Gen Z in philanthropy is crucial for organizations seeking to connect with these dynamic generations effectively. In the next section, we discuss these challenges and opportunities in generational giving and look at strategies that address them in detail.

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Let’s quickly recap the challenges and opportunities in connecting with the younger generation. 

Challenges:

  1. Inherent skepticism

  2. Desire for direct engagement and impact

Opportunities:

  1. Technology

  2. Personalization 

Keep this in mind as you create your action plan to reach out to Millennials and Generation Z.

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You’ve heard it before: A compelling narrative is critical in making a connection with donors, no matter the generation. But how do you create one that catches—and keeps—the attention of Millennials and Gen Z? What makes a narrative compelling?

Focus on emotional engagement. These younger generations are driven by emotion and empathy—more so than older generations. Strategies that evoke emotions such as hope, empathy, and inspiration can forge strong connections. Content that tugs at heartstrings and highlights the difference they can make through their support can be highly effective.

Amplify the emotional connection by sharing stories that showcase the real impact of their contributions. Personal anecdotes, success stories, and testimonials from clients will make your charitable cause more relatable.

Offer personalized experiences and opportunities for donors to connect with projects that align with their values and interests. Tailoring communication and giving options based on individual preferences and previous interactions can make them feel like valued partners in the philanthropic process.

Let’s look at an example. Say your nonprofit focuses on providing education opportunities to young women in STEM. 

Create a story about one of your participants. Let’s call her Sarah.

Meet Sarah, a young woman with a dream of getting a college degree. She grew up in an underresourced neighborhood. Her family were low-wage earners, and despite their love and support, they could not afford to financially contribute to Sarah’s pursuit of higher education. But Sarah believed education was her way out of poverty and had a fierce determination to overcome the odds, which was evident as she soared through our Excel Scholars college prep program. She embarked on a journey that would change her life forever.

At [YOUR ORGANIZATION’S NAME], we are dedicated to unlocking the potential of individuals like Sarah who face economic and social challenges. Through our comprehensive educational support programs, we empower young people to break the cycle of poverty and achieve their dreams. When Sarah joined our community, she found not just an opportunity but a family that believed in her dreams.

Sarah's story is a testament to the power of hope, empathy, and inspiration. She was paired with a mentor who not only guided her academically but also provided emotional support and encouragement. With access to our educational resources and scholarships, Sarah was highly motivated and was able to pursue her college degree (she was accepted into three universities!), something that once seemed like an unattainable dream.

But Sarah's journey doesn't end there. She didn't just earn her degree; she excelled, becoming the valedictorian of her high school class, a stark contrast to her earlier struggles with academics. Her determination and the support she received from our community led to this incredible achievement. Sarah's story of transformation is an inspiration to us all.

However, our work is far from complete. There are countless more individuals like Sarah who aspire to break free from their circumstances and follow their dreams. This is where you come in. We invite you to be a part of Sarah's journey and the journeys of a lot of young people like her. 

As a supporter, you can choose how to make your impact. We offer different ways to support our community so you can tailor your involvement to align with your values and interests. 

Want to sponsor a student like Sarah? You can give a financial donation. 

Want to change a life forever? Volunteer as a mentor.

Are you passionate about STEM education? You can support a specific project that aligns with your values. 

With us, you're not just a donor; you're a partner in creating change.

For Sarah and many others, your support can be the difference between dreams deferred and dreams realized. Join us in empowering the future, one life at a time, and help write the next chapter of inspiring stories like Sarah's. Together, we can create a brighter, more hopeful tomorrow for individuals who, like Sarah, dare to dream and work relentlessly to turn those dreams into reality.

Forge a stronger connection with donors with personalized calls-to-action:

For Student Sponsors: Receive regular updates about their academic progress, handwritten letters from them about their journey, and even attend special events where you can meet them in person.

For STEM Enthusiasts: Engage with our STEM-focused initiatives by joining virtual workshops, participating in hackathons, or mentoring young talent.

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Technology and social media offer powerful avenues to connect with the largest and most diverse generation today. Generation Z is highly motivated to make a difference in the world and is particularly passionate about social and environmental causes. 

Organizations have to be on top of their game in order to engage next-gen donors (who don't know a world without technology). 

1. Embrace mobile accessibility 

Recognize the fact that Gen Z and Millennials are glued to their smartphones. Ensure that your website and donation platforms are mobile-friendly to make it easy for them to engage. Read my guide to making a funder-ready website for more information.

Offer donation methods that this generation uses on a daily basis—Venmo, CashApp, Zelle, etc.

2. Engage with social media influencers

Social media influencers are individuals with significant online followings who leverage their authority in specific niches to influence their followers' opinions and actions. Collaborate with influencers who connect with Gen Z and Millennials. 

Young people can learn about causes from influencers, who can inspire and mobilize them to support your program or organization, amplifying Gen Z's giving and the amount they give. Here’s a good resource for finding and vetting influencers for your nonprofit.

3. Promote user-generated content (UGC)

Encourage your supporters to create and share content about the program close to their hearts. Next-gen donors connect more with peer-generated content, which can significantly boost giving levels. 

Say you focus on social and environmental causes. This is perfect for this target donor profile, as Gen Z and Millennials are highly motivated to change the world for the better. Encourage user-generated content by:

  • Running contests. Organize photo or video contests that encourage your supporters to showcase their contributions to the program. The winners can be featured on your social media and website, recognizing their efforts and motivating others to participate.

  • Sharing personal stories. Create a designated space on your website or social media for your supporters to share their personal stories about their involvement in your organization. These stories can be about their journey, the impact they've witnessed, or the change they want to see.

  • Doing advocacy and awareness challenges. Launch challenges that focus on raising awareness for a specific event or project. For instance, a "Plastic-Free Challenge" or "Climate Action Challenge" where participants document their efforts to make environmentally responsible choices. Remember the Ice Bucket Challenge

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  • Launching hashtag campaigns. Develop a catchy and unique hashtag associated with your cause and encourage your supporters to use it when sharing their own content. This can help create a sense of belonging to a broader community of change-makers. The #ALSIceBucketChallenge is a prime example.

  • Offering social media takeovers. Hand over your organization's social media accounts to a supporter for a day. This can be an influential advocate or an individual with a compelling story. They can share their unique perspective, further engaging your audience.

  • Highlighting volunteer experiences. Encourage your volunteers to share their experiences with your organization through blog posts, vlogs, or social media takeovers. Their first-hand accounts of the impact of their work can be powerful.

4. Launch crowdfunding campaigns

Crowdfunding is a method of raising funds by collecting small contributions from a large number of individuals, typically through online platforms. It enables creators, faith-based organizations, and nonprofits to finance projects, products, or operations by pooling resources from a diverse community of donors. 

Some crowdfunding platforms you can use include GoFundMe, FundRazr, Fundly, Springly, and Firstgiving.

5. Provide virtual volunteering opportunities

Develop virtual volunteering opportunities that leverage technology. Gen Z and Millennials, being tech-savvy, may prefer donating their time rather than larger amounts of money.

An example would be an online tutoring program, where supporters can volunteer their time to provide remote academic assistance to underserved students. This not only harnesses their digital skills but also supports educational causes close to their hearts.

6. Incorporate gamification elements

Gamification is the application of game elements, such as scoring, competition, and rewards, to non-game contexts to engage and motivate individuals to achieve specific goals or tasks. Features like leaderboards and virtual badges can make the act of giving more engaging and fun, motivating this diverse generation to get involved.

Example:

📚🏆 Join us in the 'Summer Reading Challenge'! ☀️📖 Let's aim high and work together! 📢 

Our goal: Achieve 250,000 reading minutes between June and August. 

Track your journey on our live leaderboard! 📈 For every 10 minutes you log, our generous sponsors pledge $1, with a target of $100,000. 🌟 

Let's make a difference, one page at a time. 💪💕 #ReadingChallenge #CommunityGoals #LiteracyMatters

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Nonprofits need to be transparent and accountable to connect with Gen Z and Millennials. These younger generations prioritize authenticity and social responsibility. They value organizations that openly share their missions, finances, and impact. 

Furthermore, being tech-savvy, the younger generation expects easy access to information and concrete results. 

What can you do?

To address skepticism and build trust, provide access to reports to help donors understand how their contributions are being used. Transparency demonstrates a commitment to ethical and responsible stewardship of resources. Just make sure you don’t post sensitive financial information like your Tax ID on your website. You want to be transparent, but you don’t want to open yourself up to scammers who troll the internet for sensitive data they can exploit.

Demonstrate the tangible impact of your donors’ contributions. Sharing regular reports on the outcomes achieved through philanthropic efforts helps donors see the real-world difference they are making. Metrics, success stories, and updates on projects can bolster confidence in the effectiveness of their support.

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Fostering strong partnerships and collaborations can significantly enhance your efforts to engage the younger generation.

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We talked about influencers earlier—people with substantial online followings who utilize their expertise within specific niches to shape the perspectives and behaviors of their audience. 

What is substantial? Here is the breakdown of the numbers:

🕴🏿 Nano-influencers: 1,000 and 10,000 followers (really specialized niches)

🕴🏿🕴🏿Micro-influencers: 10,000 and 100,000 followers

🕴🏿🕴🏿🕴🏿Macro-influencers: 100,000 and 1 million followers

Millennials and Gen Z often look to them as trusted sources of information and inspiration. Collaborating with influencers in the philanthropic space can amplify your message and attract younger donors. Seek out individuals who align with your cause, share your values, and have a substantial Millennial following. Their endorsement can bring credibility and reach to your initiatives.

Popular types of influencers include:

  • Gamers

  • Sports and fitness professionals

  • Bloggers and vloggers

  • Photographers

  • Travelers

  • Beauty experts

  • Fashion tastemakers

When planning to work with influencers, consider these:

1. Research potential influencers

Use social media platforms, influencer marketing tools, and online databases to research potential influencers. Some tools to check out:

Look for individuals who align with your cause and values. Consider the following criteria:

  • Age and demographics. Ensure the influencer's followers match your target audience.

  • Engagement. Analyze their level of engagement, likes, comments, and shares. Do their posts have likes and comments? ​​Look for quantity (how many) and sentiment (positive, negative, or neutral). If you don’t see any comments or likes at all, then you might want to look at other influencers.

  • Brand fit. Check if their voice, language, and style align with your organization’s values.

  • Follower count. While a huge following is essential, also consider nano-influencers (1k to 10k followers) who have highly engaged, niche audiences.

2. Identify social media platforms

Determine which social media platforms your target audience uses the most, such as Instagram, TikTok, or YouTube, and focus your influencer search on those platforms. 

3. Evaluate influencer content

Review the influencer's content to ensure it is aligned with your organization’s values. Pay attention to the tone, style, and messaging they use. Make sure their content is sincere and resonates with your organization's mission. Here’s a good resource on how to evaluate potential influencers.

4. Reach out

Contact potential influencers through direct messages or email. Express your interest in collaborating and explain how your philanthropic initiative aligns with their interests and values. 

Be clear about your expectations, the campaign's goals, and the compensation (if applicable). For example:

“We would like you to create three Instagram posts about our literacy campaign, use the hashtag #ReadStrong, and tag us (@EveryoneReads). Our goal is to raise $10,000. In return, we'll cover your travel expenses to our charity event, which you can document in your content.”

5. Build a relationship

Make an effort to build a genuine relationship with the influencer. Engage in conversations, provide them with any necessary information, and answer their questions. A strong, genuine partnership will lead to more effective promotion.

6. Create a campaign strategy

Work with the influencer to develop a campaign strategy that suits their style and resonates with their followers. Don’t just say, “Hey, we want you to be our spokesperson,” and then let them do what they want. It’s important that you work together from planning to execution so that you are always on the same page.

Let me repeat: Make sure that you team up with someone who truly cares for your cause. Authenticity is key in influencer marketing.

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Aligning with organizations and brands that share your mission can open doors to innovative collaborations. This expands your reach and also showcases your commitment to collective impact. Consider exploring joint campaigns, events, or fundraising efforts to tap into a broader network of supporters.

If, for example, you are a nonprofit organization focused on environmental conservation and sustainable living. Your mission is to educate the public about the importance of protecting the environment and promoting eco-friendly practices.

You can research and identify organizations and brands that are passionate about environmental conservation and sustainability. This could include eco-conscious companies, other environmental nonprofits, and educational institutions with similar goals.

Say you discover a sustainable fashion brand that targets the younger generation and aligns with your values. You both share a commitment to reducing the fashion industry's environmental footprint. 

So you reach out to them, and you both decide to launch a joint campaign called "Green Fashion for a Greener Earth." In this campaign, the fashion brand pledges to produce a limited line of eco-friendly clothing using sustainable materials and ethical production practices. Your nonprofit, on the other hand, educates the public on the environmental impact of fast fashion and the benefits of choosing sustainable fashion options.

Together, you plan a series of events and fundraisers. These could include eco-fashion shows, workshops on sustainable living, and charity auctions featuring clothing from the sustainable brand. A percentage of the proceeds from these events goes toward funding your conservation efforts.

You can also engage in collaborative marketing. Leverage the brand's marketing resources to promote the campaign. They can use their social media platforms and customer base to reach a wider audience. Meanwhile, your nonprofit can share the campaign's message on your own channels and engage your supporters.

By aligning with a sustainable fashion brand, your nonprofit not only expands its reach but also demonstrates its commitment to collective impact. The collaboration showcases that you're working together with a brand that shares the same environmental values, and this can inspire more people to join the effort, ultimately leading to a more significant positive impact on the environment.

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Empower Millennials and Gen Zers to become advocates for your cause among their peers. Encouraging peer-to-peer advocacy fosters a sense of community and belonging. Provide tools and resources that make it easy for them to spread the word, fundraise, or volunteer within their social circles. Leveraging their personal networks can lead to increased engagement and trust within the Gen Z and Millennial demographic.

By embracing these collaborative strategies, your philanthropic efforts will not only connect with next-gen donors but also create a ripple effect, inspiring a new generation of passionate advocates for your cause.

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The philanthropic landscape will only continue to shift in the coming years. It is crucial for nonprofits to be aware of potential trends with future generations to increase long-term impact and sustainability

Let’s take a quick look at what you might expect for the future of Millennial and Gen Z philanthropy so that you can take these factors into consideration.

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Millennials and Gen Zers are digital natives, and their philanthropic activities will reflect this. They prefer to engage with causes and organizations through online platforms, mobile apps, and social media. Digital donations, crowdfunding campaigns, and tech-driven solutions will become more prominent.

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These generations are deeply committed to causes that align with their values. Social justice, environmental sustainability, equality, and human rights are central themes for them. They demand transparency, accountability, and measurable impact from the organizations they support.

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Millennials and Gen Z tend to be actively involved in the causes they support. They aren't just about donating money and writing checks; they are more likely to volunteer, organize grassroots campaigns, and advocate for change. Their desire for hands-on involvement will reshape the strategies of nonprofits and philanthropic initiatives.

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This younger generation is highly likely to challenge established philanthropic models.l challenge established philanthropic models. They will exert their influence on family foundations, pushing for more progressive approaches and greater alignment with their values. Corporate social responsibility strategies will evolve to meet their demands for social and environmental responsibility.

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Gen Zers and Millennials are naturally collaborative and innovative problem solvers. They prioritize collective action and fresh solutions to entrenched social issues. As a result, they are likely to foster cross-sector partnerships and drive the development of new, tech-driven solutions to longstanding problems.

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The entrepreneurial spirit of these generations extends to the philanthropic realm. They are more likely to support and engage with social enterprises and initiatives that blend financial sustainability with a positive social or environmental impact.

Some popular social enterprises include:

  • TOMS: This shoe company started out by giving a pair of shoes to a child in need for every purchase made. It has expanded since then and now invests in three key areas—Boosting mental health, Increasing opportunity to access, and Ending gun violence—because they “believe that together, they help lay the groundwork for equity in the communities” they support (including Black, Indigenous and People of Color, LGBTQ+, and Women & Girls).

  • Baron Fig: They sell journals & pens and champion the environment. For every notebook sold, they plant one tree. To date, they have planted more than 50,000 trees in 30+ countries.

  • Warby Parker: The company sells eyewear, and its “Buy a Pair, Give a Pair” program has provided more than 15 million pairs of glasses to those who need them.

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Nonprofit organizations need to adapt to these evolving preferences to engage and mobilize the philanthropists of tomorrow effectively.

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You’ve discovered the pivotal role that the younger generation plays in philanthropy. To be a sustainable nonprofit, you have to be proactive and creative to create a continuous stream of support. It may seem daunting at first, but the most important thing is to get started. 

Come up with an idea that gives priority to young people, gather information on what's effective and what isn't, and begin connecting with this group. Your nonprofit needs extra help, and young people want to be a part of it. You can't afford to ignore investing in the next generation of supporters.

If you're worried about taking attention away from your loyal, older donors and volunteers as you reach out to a new audience, remember that the effort to involve young people shouldn't be done in a vacuum. It's not just Millennials and Gen Z who want a personalized approach and will support organizations that provide it; it's something everyone expects.

To expand your nonprofit’s reach, I recommend reading these articles:

✴️ Branding for Nonprofits: Strategies for Visibility and Recognition

✴️ How to Find Donors for Your Nonprofit

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  1. Online Giving Statistics

  2. Generation Z and Philanthropy

  3. US Population by Generation

  4. Next Generation of Generational Giving