The Future of Giving: Trends Shaping Next-Gen Philanthropy Shelley Hoss - Forbes
go to original December 28, 2021

Millennials and Gen-Z are reshaping philanthropy and ushering in a new era of giving. A report by payment app Zelle found that nearly 75% of Millennials provided financial support to family, friends or nonprofits since the COVID-19 pandemic began — the highest rate among any generation polled.

Younger generations of philanthropists are mobilizing rapidly to support causes they believe in, sharing these causes on social media and crowdfunding donations. An example of this trend occurred earlier this year when the Pet Alliance of Greater Orlando experienced overwhelming donations after a deadly fire destroyed their location. News coverage of this incident reached thousands on social media, resulting in a flood of new donors supporting the organization. In fact, according to Pet Alliance executive director Steve Bardy, the organization typically receives donations from about 10,000 donors per year — but in seven days, they had more than 12,000 donors, raising hundreds of thousands of dollars to rebuild their office.

The spirit of generosity and passion for impact among younger donors is awe-inspiring. But to harness it, nonprofit organizations must welcome a new generation of highly engaged, impact-driven supporters looking for deep connections and measurable outcomes as key elements of their philanthropy.

Unlocking the full potential of next-gen philanthropists will take a focused and sustained effort by nonprofits, but those who crack the code can reap the reward of gaining not just donors but co-creators and vested partners for good.

There are tangible steps nonprofit leaders can take to attract and retain next-gen donors for life-long giving:

• Make getting involved easy. First-time engagement with a cause is often a small step, such as liking a social media post, volunteering time or signing a petition. What’s essential is carrying on the conversation and keeping new supporters invested in your organization and mission.

• Narrative is important. Potential donors relate most to social issues when impact on real lives is at the heart of the story. Center your organization’s narrative in human terms through written word, videos and images. If next-gen donors see themselves or someone they know as being affected by a cause, I've found they will have a higher propensity to take action.

• Don’t shy away from bold views. Organizations should share their stance on social issues with specific examples of what they’re doing to advance progress. Remember, young philanthropists want to get behind a cause that is meaningful to them.

• Cross-sector collaboration is vital. Work with other organizations and collaborate across sectors on causes that foster a positive impact in your community. Younger donors often want to see organizations partnering together to create action and change through innovative solutions.

Younger generations are shaping a new course for philanthropy. As emerging philanthropists become the next generation of nonprofit board leaders and major donors, they will likely continue to challenge convention and historical practices, raising the bar from charitable giving to charitable living — and I believe that our sector will be stronger, more resilient and better prepared for the future as a result.

Shelley Hoss is president & CEO at Orange County Community Foundation, one of the nation's largest & fastest growing community foundations.

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