Busting 4 Myths About Millennial Fundraising

It’s not news that millennials and Gen Z present a more complicated picture regarding philanthropy than the preceding generations. While they are impact-driven, hands-on and focused on social justice, they are less trusting of institutions and less inclined to give large gifts.

Fundraisers have been vexed by how to approach this demographic for the past decade or more, so here are some prevalent myths I’ve encountered in my work with nonprofits. Discover how you can move beyond the myth to achieve success and gain valuable insight into generational perspectives and competencies.

1. Your Next-Gen Group Needs to Be a Loss Leader

The young leadership of an organization seeking to launch a next-gen program had convinced staff and senior leadership that fancy parties and big expenses are needed to attract donors. Before the first event got off the ground, a major, multi-year deficit was projected. 

Even when working with a millennial audience, your organization needs to center itself in its mission and identify its goals in launching this group. As stewards of philanthropic dollars and a responsibility to serve its clientele, nonprofits must always think about return on investment. It is OK to invest in an audience if there is a return of a reasonable amount of money within a reasonable timeframe. 

Offering over-the-top parties at low cover charges sets the wrong expectations for your prospects. Scale back to more casual events that are fun and social but focus on your mission. 

2. Looking to Millennials for Major Gifts Is a Lost Cause

Millennial donors are notorious for their distrust of traditional institutions. They are more likely to get engaged in hands-on ways, such as advocacy for social change. Cultivation here requires patience and education. 

I often compare philanthropy to manners. Some people are born with them, some people learn them, and others never learn. You can expose your millennial donors to the value proposition of philanthropy and the impact it will have on causes that are important to them, as well as the impact on themselves.

It is critical for your language in all kinds of touch points — from one-on-one conversations to leadership training to direct marketing — to be donor- and impact-centric. Reframe how you would typically make your organization's case: Instead of “Can you help our nonprofit achieve our goals,” the message is, “Here is how our organization can help you achieve your philanthropic goals.” The donor’s major gift to your organization will create the impact they want to see.

3. Traditional Fundraising Models Don’t Work With Millennials

The myth here is that there is a traditional fundraising model. Sure, there are best practices, but we do our best work when we are innovating and tinkering. Think about how you can adjust fundraising practices to fit millennial sensibilities. For example, can you find a way to add humor to the traditional practice of offering naming opportunities to make the idea of naming spaces palatable to your younger donors?

During the pandemic, we had no choice but to let go of many preconceived notions about the way we did business. While we have returned to many pre-COVID-19 practices, there are some innovations that stuck. Likewise, we must allow ourselves to make space for new ideas and models. 

If we want millennials to lead, we need to empower them to work in the ways that are natural to them — a WhatsApp message or direct message on social media may be the way they prefer to communicate. Perhaps a hybrid model will wind up providing us with the best of both worlds.

4. Millennials Don’t Need Institutions

I often utilize an exercise called “CPR” when coaching nonprofits about fundraising. Does the prospect have capacity, passion and relationships (CPR)? One can have all the money in the world, but if they don’t care about the cause or don’t connect to someone at the organization, they will likely not give a significant gift. 

Millennials are digital natives. Much of their lives are on devices and their reality exists in large part on social media. This existence in a more virtual world means losing out on deep personal interactions, and people can become more isolated. 

As a nonprofit, you are offering them something of real value — meaning. Giving makes people happy, organization participation means joining a community of meaning. People like to feel their participation and support makes a difference. The relationships to individuals at the organization can provide real value to millennials as well. While millennials may be less inclined to connect to an institution initially, they may benefit from that connection once it is established. 

The preceding post was provided by an individual unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of NonProfit PRO.