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Generation Z and Millennials are becoming increasingly interested in donating to basic needs. But, they might not have enjoyed their educational experience because giving to education is becoming less popular with each younger generation.
Giving across all generations has declined since 2008. In each stage of life, individuals are less likely to give than they were in 2003.
That’s some of what is in the data from the Lilly Family School of Philanthropy in its new The Next Generation of Philanthropy report. Generation Z, or Gen Z, is the generation born between the mid-to-late 1990s and the early 2010s. Millennials are those born between 1981 and 1996.
There is some agreement between the generations when it comes to priorities. They agreed on the top three choices of 10 provided by researchers – religion, basic needs and combination of purpose organizations. The also agreed at number five (COVID and pandemic), number eight (education), number nine (art) and number 10 (youth). They diverged on placement for international, health and environment.
According to the study’s authors, “next generation donors are deeply issue-driven, and prefer flexible approaches to philanthropy with fewer strings attached. Young donors also seek trustful, long-term relationships with the causes and organizations they support. Generation Z and Millennial philanthropy often transcends traditional giving methods to encompass activities such as ethical purchasing, impact investing, and leveraging social media to create change.”
Younger donors favor environmental and social justice issues more than older donors. They are also highly responsive to current events and global issues through both domestic and international giving.
Seeing themselves as active participants in their philanthropy, next generation donors often first get involved with causes and organizations through volunteering, utilizing their time not only to serve, but also to learn more about nonprofit organizations.
Next generation donors also enjoy using online donor platforms such as crowdfunding and peer-to-peer funding that make giving more transparent and personalized, the authors wrote. Crowdfunding’s efficiency and decentralized features create a platform that allows donors to quickly and directly impact the causes they care about. Crowdfunding platforms also build a sense of community by sharing real time data on campaigns and the impact of the gifts.
Crowdfunding donors tend be younger, less religious, and more educated. They also tend to come from diverse backgrounds. The average age of crowdfunding donors is 44, compared to 50 for traditional donors, according to data from the Indiana University Lilly Family School of Philanthropy that was included in the report.
Next generation donors have a tech-forward approach to all aspects of philanthropy, including collaborative online exchanges between donors and organizations, learning about and advocating for causes on social media, making online donations, and accessing resources.
