Influence

 the shape of leadership

Connecting With Tomorrow’s Philanthropists

Four next gen donor trends

Kent Ingle on August 5, 2024

There’s a common saying that if you want to know where someone’s heart is, look at their checkbook (or bank account). Our spending habits reveal one’s priorities, especially when it comes to giving.

Through economic inflation, a pandemic, and tumultuous stocks, trends show that giving has fluctuated over the past four years — from increases in 2020 and ’21 to an all-time low in 2022. Cash giving rebounded in 2023 for churches and shows optimism for this year, according to a report from the Evangelical Council for Financial Accountability.

Despite all these changes, there’s one shift in giving that we are seeing across the board. Next generation donors (millennials and Gen Z) are changing the landscape of philanthropy and giving is a top priority.

A Barna report revealed that “younger adults (Gen Z and millennials) are more likely than their elders to believe the economic moments calls for them to be more generous than usual in their contribution to nonprofits.”

And 60% of millennials and Gen Z donors say they are likely to give more money to charity over the next 12 months than they did in the prior year, according to a report conducted by The Harris Poll.

To successfully engage NextGen donors, there are four trends we should be aware of.

 

Giving Consistently

During the pandemic, one study by Zelle found that Gen Zers and millennials were most likely to provide financial aid to someone. NextGen donors are willing to cut back in other areas of their lives to increase or keep giving, according to research from Classy’s “Why America Gives.”

NextGen donors aren’t afraid to give during times of economic uncertainty. This generation demonstrates the crucial role of donating, regardless of one’s financial situation or circumstances (something that should challenge all of us).

Their willingness to make sacrifices reminds me of Mark 12:41–44, where Christ tells how the widow’s two coins “put more into the treasury than all the others” because “she put in everything — all she had to live on.”

NextGen donors are more likely to give consistently online, through their phones or via social media, according to a report from PayPal Giving Funds Canada. If we want to engage NextGen donors, we must provide giving options on digital platforms they commonly use.

 

Giving for a Cause

NextGen donors are putting their money where their hearts are. To see changes in the world, this generation is leading the way in giving to causes that deeply resonate with them. An analysis of nongovernmental and charitable organizations found that Gen Z’s charitable contributions are growing due to their commitment to social and environmental causes.

Next generation donors (millennials and Gen Z) are changing the landscape of philanthropy and giving is a top priority.

This generation gives to organizations that align with their values and engage in work they consider meaningful.

NextGen donors are putting 1 John 3:17–18 into practice. These verses say, “If anyone has material possessions and sees a brother or sister in need but has no pity on them, how can the love of God be in that person? Dear children, let us not love with words or speech but with actions and in truth.”

To engage NextGen donors, we must demonstrate how we are meeting the needs of local and global communities. This can be accomplished by sharing testimonials from the pulpit and on our websites and social media channels.

The next wave of donors should inspire us to give toward causes that deeply concern God. 

 

Giving Time

Many NextGen donors believe that volunteering is more impactful than monetary donations, according to Changing Our World, Inc. As they volunteer their time, this generation also desires to have a seat at the table by sitting on the boards of nonprofit organizations.

Churches and organizations can engage NextGen donors by allowing them to participate in decision-making processes and informing them of volunteer opportunities (at every level) that align with their passions. This should go beyond just asking them to volunteer but allowing them to be a part of the leadership shaping the future.

First Timothy 4:12 encourages young adults not to let anyone look down on them because of their age. This verse can also remind us to treat young adults respectfully and look to them as leaders who can contribute to our organization’s future.

 

Giving Because of Transparency

Before young donors give, they do research — whether through talking to friends and family or searching online. According to Barna, 81% of Gen Zers report researching organizations and charities before offering financial support.

Younger generations often turn to platforms like YouTube and social media as their primary sources for why they should support an organization. And when they do contribute, the next generation is more likely to expect charities and nonprofit organizations to explain how their donations are being used.

Transparency increases NextGen donors’ trust in charities and nonprofits. Due to providing transparency around spending, 57% of churches in 2023 reported an increase in congregational giving.

Proverbs 11:3 says, “The integrity of the upright guides them, but the unfaithful are destroyed by their duplicity.” We can demonstrate transparency by regularly publishing annual reports and showcasing stories highlighting the positive outcomes of others’ generosity.

When looking at the trends of NextGen donors, we should be inspired. It’s a generation willing to invest in and make sacrifices to see their passions and values put into action. It’s a generation that embodies Christ’s heart of caring for others.

And it’s a generation we should start taking seriously when it comes to giving.

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