Will the art of fundraising and community engagement change as we move out of the Information Age and into the Age of Transformation? What are the generational differences between the 'Adopters' (Matures, Boomers, GenX) and the 'Transformers' (GenY, GenZ, Alpha)? Presented by Lee Fox for the Getty Leadership Institute on June 11th, 2014, the biggest take-away is that just like any other non-profit or community organization, museums have to focus on communicating "impact" in order to ensure they are able to grow their charitable donations.

1. the age for transformation
Lee Fox
a new art in raising funds
from different generations
June 2014

2. an age of
transformation
Evolutionary leaps in the history
of human progress are directly
linked to the adoption and the
adaption of powerful tools both
invented and discovered.
The arch of humanity is shaped
by these tools, as the norms of
one ‘Great Age’ are chiseled
away in favor of the next.
2014 marks the “25th year” of
the internet, it also marks a new
generation — that of the
transformers.

3. 1983
TCP/IP
protocol
Matures Boomers GenX GenY GenZ Alphas
Adopters Transformers
1972
1st video
game
1989
World Wide
Web
1993
1st Browser
for Personal
Use
1927 -1945 1946 -1964 1965 -1983 1984 -1996 1997 - 2009 2010 - now
1973
1st mobile
phone
1969
1st computer
message
1998
Google
launched
1947
Polaroid
camera
1936
high-
definition TV
2004
Facebook
launched
2007
iPhone
2010
Kickstarter
launched
2014
Bitcoin
emerging
Age of INFORMATION Age of TRANSFORMATION

4. digital transformation
is about engagement
• The Maker Movement and
accessibility of digital
resources
• socially-constructed learning
• “co-creation” versus
“broadcast”
• “data check-ins” with rewards
• digital discovery and cultural
vitality
• “use” rather than “ownership”

5. 90/8/2 rule
• 90% of collection should be freely
available for people to view and share
• 8% of collection should be identified as
having commercial potential
• 2% should be focused on licensing and
distribution to generate revenue
Source: Nicholas Poole, Chief Executive at Collections Trust

6. the future of
philanthropy is feedback
• facebook (1.5B registered 1.1B active)
• twitter (554M registered 255M active)
• pinterest (70M registered 40M active)
• google+ (540M registered 350M active)
• youtube (1B unique visitors monthly)
• tumblr (186M blogs)
• linked in (300M registered 187M active)
• vine (40M registered)
• instagram (200M registered 150M active)
• snap chat (60M registered 30M active)
• reddit (109M active unique visitors)

7. adapting to it
• Matures - (age 69+)
• 88% give
• 6.2 charities
• telemarketing
• monetary donations
are the most
powerful
27M
• 26% of total giving
• $1,367 annually
• direct mail / email
• honor, tribute, gift,
donation of goods
traditional
make it…
“legacy”
Source: PEW Research
43%

8. adopting it
• Boomers - (ages 49-68)
• 72% give
• 4.5 charities
• direct mail / email
• monthly giving
programs
79M
• 43% of total giving
• $1,212 annually
• tablets
• payroll deductions
easy
make it…
“multi-channel”
Source: PEW Research
60%

9. adept at it
• GenX - (age 48-36)
• 59% give
• 3.9 charities
• email / social media
• workplace giving
49M
• 20% of total giving
• $732 annually
• word of mouth
• stocks
convenient
make it…
“work-centric”
Source: PEW Research
72%

10. altering it
• GenY - (age 35-18)
• 60% give
• 3.3 charities
• word of mouth / text /
social media
• peer-to-peer /
crowdfunding
86M
• 11% of total giving
• $481 annually
• events / volunteering
• social currency
decentralized
make it…
“co-created”
user generated
content is trusted
50% more than
other media
Source: PEW Research
89%

11. transforming it
• GenZ - (age <17)
• 90% give
• 49% of girls have
given of their time at
least once vs 39% of
boys
• 74% of teens (12-17)
are “mobile internet”
users
• 75% of all teens text
• 81% of all teens use
some kind of SSN
25M
• not measured in
total giving
• 95% of teens use
the internet
• 1-in-4 teens is cell-
mostly internet
users
• 60 texts / day on
average
mobile & fun
make it…
“social”
voluntrepreneurs
Source: PEW Research

12. When Transformers “give”
their contributions are more
than financial.
They want brand counterparts
to ‘value’ their opinions,
expertise, co-creations,
social currency, time, and
money equally.
!
What can you do to show
them their contributions
matter?

13. Louvre
Nat’l Natural History
Nat’l Museum of China
Nat’l Air & Space
British Museum
Metropolitan
National Gallery
Vatican Museums
Natural History
American Natural History
Nat’l American History
Tate Modern
Nat’l Palace Museum
Nat’l Gallery of Art
Centre Pompidou
Source: AEOCM: Themed Entertainment Association
today’s most popular museums & galleries
$16
$0
$0
$0
$0
*$25
$0
$22
$0
*$22
$0
$0
$5
$0
$17
entry price
9M

14. Museums Total Revenue
Government Support
Private Individual Donations
Private Corporate Donations
Foundation Support
Admission Fees
Membership Fees
Other Earned Income
Investment Income
decrease increase
Source: American Alliance of Museums
’09, 10, 11, 12

15. Government
Support
24.4%
Private
(charitable) giving
36.5%
Earned
Income
27.6%
Investment
Income
11.5%
Source: American Alliance of Museums
transforming it

16. museum snapshot
(USA)
• 17,500 museums in the 1990s as
compared to 35,144 TODAY!
• Museums depend on
charitable gifts for more than
1/3rd of their operating funds.
• Museums directly contribute
$21B to the national economy,
employ 400,000+ people and
attract 165M tourists annually.
• Vast majority were established
as educational institutions and
grew with investment &
collections.

18. Patronage
1884 – 1885
Statue of Liberty
!
$100,000
raised in 6 months
!
125,000
people participated
!
Joseph Pulitzer
Campaign Promoter

19. (recognize this museum?)

20. Do you know the value of your museum’s
social currency?
donations
mentions
RT’s
tweets
shares
comments
likes
Chart published by the Palazzo Madama Museum

21. Top 10 Crowdfunding Tips
1. RELATIONSHIPS mean everything
• the funding process creates long-term
connections to existing and new people
• breadth versus depth
2. SEGMENT & AUTOMATE
• draft personalized emails
• create incentives / rewards for sharing
• involve passion-based communities
• social media implementations

22. 3. MESSAGE CLARITY
• be very clear, you only have 3-seconds to get
the ‘buy-in’ of a prospective contributor
4. HAVE A PLAN
• communication plan vs PR plan
• identify which tools you will use
• track-back your results
• drop-box for seamless sharing
5. CROSS POLLINATE
• multi-generational approach
• multi-passion communities
• give people something to share

23. 6. TAP INTO INFLUENCERS
• experts and media
• board members and bloggers
• educators and patrons
7. PLAY ON EMOTIONS BUT INVITE
CONVERSATIONS
• individuals
• communities
8. MAKE YOUR STORY COME TO LIFE
• 65% of all internet searches are video-based
• crowdfunding campaigns with good videos
average 114% more funding than those without
• caption contests
• families
• tourists
• podcasts

24. 9. MAKE IT EASY TO SHARE AND FOLLOW
• social media / fan pages
• email / newsletters
• texts / mobile apps
• (what reasons are you giving them?)
10.
IT’S NOT ALL ABOUT THE MONEY
• validation
• community-building
• recognition
• direction

25. unleash your genius
(try a virtuous selfie)

26. THANK YOU &
QUESTIONS?
Lee Fox
!
@PeerSpring
lfox@PeerSpring.com

27. A Tale of Two Museums
• Delaware Museum - houses 12,500 pieces of art
• Reeling from bond debt after an expansion + renovation
in 2005, museum has to put up art for sale to raise
$30M
• It took the trustees 4 years to raise $6.7 million of a $10
million campaign to celebrate the museum’s centennial,
not being enough, the museum resorted to selling some
prized art pieces, an ethical violation of public trust
• Bell Museum - houses 4 million specimens of animals,
birds, plants, insects and other species
• In 2002 it started a multi-year campaign for state
funding to build a new facility with the estimated price
tag of $51.5M
• Museum was incapable of raising enough money, so it
resorted to selling bonds. http://www.startribune.com/sports/outdoors/259469281.html
http://blogs.artinfo.com/realcleararts/2014/05/05/insiders-duel-on-delaware-
deaccessioning-dilemma/