Revolutionizing Our Approach to Reach the Next Generation
By Michael J. Tomlinson, CEO
“You say you want a revolution, well you know, we all wanna change the world…”
Those of you who share my passion for classic rock – and for doing good through cause work – are hopefully singing along to this Beatles’ classic.
It’s a proper soundtrack to the fundamental changes we are observing in philanthropy today.
Donor behaviors are changing. Their motivations for sacrificial giving are returning to the heart-driven fundamentals of what triggers generosity: Relationships.
You may be saying, Relationships? But those aren’t new. To which I say, correct – but the ways of connecting that donors crave today is vastly different from what we’ve offered over the last 30 years.
To continue our impact, we must have the courage to welcome this relationships revolution. To shift our perspective and commit to a fundamentally different relationship paradigm between organization and supporter.
Our industry is ripe for revolution, and we can accelerate it through our active participation in the types of supporter-organization relationships our donors are longing for.
Tracing the Trends: What Donors Really Want
Over the past 10 years, the relational narrative in philanthropy has steadily evolved. Our fundraising has shifted from what “US” as organizations do with the donations we receive… to how “WE” partner with donors and leverage their support to do great things together.
But today’s givers want to be central to the story. They want us to show them, “YOU did this… and it’s only possible because of YOU.”
This is not just a trend I’ve noticed anecdotally. It’s also seen in the more than…
- $30 billion given on GoFundMe platforms since 2010
- $35 billion per year given across all crowdsourcing platforms
- $9 billion per year given across social media platforms
- $5-$10 billion per year shared peer-to-peer via Venmo, Zelle and other banking apps
In total, these dollars represent in excess of $55 billion given in 2023, and likely more in 2024.
Some say these trends in giving are a threat and responsible for the declines we’ve seen in traditional fundraising. My opinion? This is awesome news!
This is proof that philanthropy in America is still about abundance – not scarcity. Our hearts and our faith are still intact. And most importantly, there is hope yet for the next generation of philanthropic givers!
It’s up to us to adapt our traditional fundraising strategies to engage current and future donors.
Revolutionizing Relationships: The Donor Empowerment Model
In this new era of philanthropy, donors participate when their needs are met.
Yes, you read that right. While donors do want to share their blessings with others, they’re also asking self-interested questions like:
- How do I do the most good with the causes I care about?
- Where do I see my impact?
- What’s my role in making a positive change?
Some schools of thought may call this shift “making the donor the hero” in your messaging. Yes, and it goes beyond that to what I’m calling The Donor Empowerment Model.
Emerging donors care less about being part of an “operation” (i.e., a nonprofit that addresses perceived needs in a community). These donors want to directly participate in transforming lives… and we can empower them to do so.
Foundational to this model is technology and innovation, similar to crowdsourcing platforms like GoFundMe. Another way to think of this is a fundraising model powered by “relational technology.”
Digital channels allow for faster relationship-building, more frequent touchpoints to raise awareness and inspire trust, and greater control for donors when it comes to their privacy and preferences. .
Making Room for the Next Generation of Givers
Within the Donor Empowerment Model, we have the opportunity to adapt and expand our fundraising strategies to welcome the next generation of supporters… and encourage their long-term loyalty.
While there are many ways you can tailor this model to your organization’s approach, there are two key shifts I encourage:
- Reframe the Narrative. Stop telling stories about your organization. Start telling stories about your donors’ impact:
- DEMONSTRATE why donors’ participation is a critical solution for the current needs (“This is something we can impact together!”), and that the timing for engagement is critical now
- INSPIRE by showing how improvement and success is achievable
- REVEAL who and why others of note have chosen to join this movement (endorsement and affiliation)
- MAKE THE CASE why this movement should WIN in competition for your resources and attention among many needs and good charitable options
- REMIND donors of their impact and report back on the life transformations they’ve made possible
- Recognize the New Majority. Millennial and younger donors now number greater than 50% of the active giving population in the US. And it’s estimated that this group is responsible for 25-30% of all philanthropic dollars.
Not only will this group “grow up” and “grow into” greater capacity for larger gifts, but they are coming into new resources to amplify their financial stewardship. We must keep this audience at the forefront of our minds when communicating to donors and prospects.
The Great Wealth Transfer has begun – with an estimated $125 trillion being passed from older generations to the next generation of givers between now and 2045.
The next generation of donors will have more money to give both short-term and throughout their lives, so we should steward our relationships well with them now.
We must provide these upcoming mass donors with the relational giving experiences we’ve mostly reserved for major donors up until now. And in doing so, I believe we’ll see their capacity to give generously continue to grow.
Where to Next?
The opportunities ahead for greater donor engagement are exciting. I truly believe that the changes we see happening in philanthropy today paint a clear picture of the growth to come.
We can adapt our current systems and strategies to leverage these changes and add more generous givers to our communities. Through the Donor Engagement Model, we can invest in deeper relationships with those who fuel our causes.
Together, we can usher in a renaissance of one-to-one relationships and bring revolution to an industry that is ripe for it.
You say you wanna a revolution? YES! And it’s through our relationships with one another and our supporters that we CAN change the world.
