Millennial Giving: Key insights and tips for Nonprofits
As millennials and younger generations continue to redefine traditional norms, their approach to giving and philanthropy is no exception.
Nonprofits today are facing new challenges in engaging these donors, who seek deeper value alignment, embrace diverse forms of generosity, and rely heavily on technology for their contributions.
Financial planner and generosity advisor Adam Malcolm shared tips on how nonprofits can effectively engage millennials and younger generations in giving during a live discussion with Sara Hoshooley of Connect for Good.
We’ve captured some takeaways from that session that nonprofits should understand to foster lasting relationships with millennial donors.
7 Tips for Nonprofits to Engage Millennial Donors
1. Generosity Looks Different Today
Millennials, Gen X, and Gen Z approach giving differently compared to older generations. They often don’t limit their generosity to registered charities or tax-receiptable donations. Many prefer value-aligned investments, crowdfunding, or informal acts like interest-free loans to friends or donations to for-profit companies that reflect their values. Nonprofits should recognize and embrace this expanded view of generosity.
2. It’s All About Value Alignment
Younger generations prioritize aligning their donations with their personal values. They are looking for robust, meaningful relationships with the organizations they support. It's essential for nonprofits to highlight how their values match those of potential millennial donors. Transparency and authentic communication are key to building this trust.
3. Move Beyond Transactional Giving
Millennials and Gen Z are less interested in transactional giving and more interested in creating sustained relationships with the causes they support. Nonprofits need to cultivate long-term engagement through consistent, open communication, rather than focusing solely on one-time donations.
4. Leverage Technology
Crowdfunding, peer-to-peer lending, and digital tools are gaining popularity as giving platforms, and younger donors are embracing them. Nonprofits should explore new technologies and platforms, such as Tip Tap (for digital payments) or micro-grants for community-driven initiatives, to engage these tech-savvy donors.
5. Legacy and Securities Donations
Many millennials are unaware of the potential for securities donations or legacy giving, despite having the financial capacity to do so. Nonprofits should make it clear that they accept gifts of securities and include easy-to-understand information on their websites. Legacy giving, while more complex, can also be a valuable avenue for nonprofits to explore with younger philanthropists.
6. Engagement through Personal Connections
Text messaging is an underutilized yet powerful way to connect with millennial donors. Nonprofits can use texting as a direct, efficient communication channel for key supporters. Additionally, nonprofits should not be afraid to build personal connections with potential donors by asking about their stories and values during informal meetings.
7. Overhead Myth and Donor Education
Many donors still believe in the “overhead myth”—the idea that nonprofits should minimize administrative costs at all costs. Educating donors about the importance of investing in strong teams and organizational capacity is crucial. Nonprofits should frame this conversation in terms of making the greatest impact, rather than simply minimizing expenses.
A Conversation on Millennial Giving
Tips for Nonprofits
By shifting their approach and embracing these insights, nonprofits can better engage millennials and future generations in their missions. Here are a few final takeaways:
Focus on building long-term, value-based relationships with millennial donors.
Use modern technologies like crowdfunding and peer-to-peer lending to expand your giving options.
Communicate the availability of securities and legacy-giving opportunities.
Engage key donors through text messages and personal conversations.
Educate donors about the necessity of administrative costs to achieve meaningful impact.
