Create a Multigenerational Donor Base to Capitalize on the Historic Wealth Transfer

We are in the midst of the largest wealth transfer in history. According to Cerulli, over the next 20 years, an estimated $84 trillion will be passed down from older generations. This shift in wealth presents a critical opportunity for nonprofits to actively re-examine their donor strategies and prepare to tap into new donor demographics. The up-and-coming generations set to inherit this wealth, millennials and Gen Zers, have demonstrated a strong commitment to social causes, acting as one of the most outspoken and engaged cohorts for social justice, equality and other causes that have both global and local impacts. 

That doesn’t mean the next generations’ giving habits will reflect their parents’ tendencies. Even further, the same fundraising strategies that might have worked for our older generational donors might not apply to the digital-first, tech-savvy and discerning younger generations. 

Your organization needs to have a thoughtful fundraising strategy for millennial and Gen Z donors that helps them see the direct impact they have on the community you serve. In doing so, you position your nonprofit to form deeper connections with these potential donors, coordinate existing donors’ wealth transfer and secure long-term financial support to drive meaningful impact for your cause.  

Estate Planning for Multigenerational Support

Baby boomers beginning the wealth transfer process may have questions about how they can continue their legacy of giving beyond their lifetime. As a nonprofit, you can engage your long-term donors in this conversation by providing them with information about your planned giving program and encouraging them to discuss charitable giving as part of the broader estate planning discussion they may be having with their financial adviser. 

By having this discussion early, you help them engage their children and grandchildren in the giving tradition and create a multigenerational donor base committed to your cause.

Revamping Your Digital Strategy to Meet New Donors Where They Are

Nonprofits should not overlook the importance of directly engaging with younger donors in the early stages of wealth-building. Many potential donors in this generation may feel that their donations are too small to make a difference or may simply be unaware of how they can support a cause they care about. As a nonprofit, it is imperative to meet these donors where they naturally engage and communicate the impact of their giving.

As digitally native generations, millennials and Gen Z turn to social media not just for interpersonal connection but for information gathering, shopping and more. Over 46% of Gen Z use social media for online searches rather than traditional search engines, like Google, while 55% make purchases directly through social media. These socially conscious potential donors are actively online and have an appetite to align their dollars with the causes close to their hearts. 

Unlike donors of previous generations, who may have consistently written checks to their preferred nonprofit year after year, millennial and Gen Z donors are more apt to donate to crowdfunding sites, like GoFundme, where the dollars go directly to helping someone in need and the impact is clear and immediate. By sharing strategic, interactive social media content, nonprofits can raise awareness of their mission, demonstrate the impact of donations of all dollar values, and build a vocal community of donors. Social media platforms also boast peer influence as younger generations actively share their interests and publicly endorse social causes. These posts can build greater awareness for nonprofits and encourage existing donors’ friends, families and followers to also pledge support for nonprofit causes.

While cost efficiency is always a priority for nonprofits, social media strategies for donor acquisition and retention can also be more cost-effective than traditional fundraising methods, like pricey large-scale events. Social media engagement offers targeted initiatives to reach specific demographics of donors of all sizes.

Maximizing Reach and Impact 

The anticipated wealth transfer provides nonprofits an invaluable opportunity to usher forward the financial support they need to deliver on their missions and bring about lasting change. By focusing on both ends of the donor spectrum — securing multigenerational giving from older donors and cultivating the next wave of philanthropists, nonprofits can capitalize on changing demographics to ensure their sustainability for years to come. 

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.