Fundraising and the Next Generation August 2011


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Presented for Young Nonprofit Professionals Network San Diego in August 2011.

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  • EDA Consulting
  • We are influenced in these generations by key activities/shared reference points – world wars, 9/11, women ’s movement Boomers: Martin Luther king, Jr., Gloria Steinam, The Beatles, tv, vietnam war protests Gen X: Bill Gates, internet, Rodney King, Berlin Wall, Apartheid, Madonna, children of divorced parents, Seinfeld, Friends Gen Y: 9/11, Facebook, ipods, American idol Millenials are going to be second in size to Boomers – could rival the size depending where we call the end of the generation
  • Emily ’s comments – catalyst…, management style This is the generation that really were responsible for creating the nonprofit sector and charitable giving in a formalized way in the US MOTIVATIONS: Leaving a legacy; Security defined as safety, money; Loyalty; Their health; God, duty and country; Education; Being useful; Pride; Fear MARKETING - THINK: Conservative imagery; Legacy; Family; Healthy couples; Won ’t spend a lot; Well-known brands
  • Caption from 2008 stat Emily – appreciate hierarchy and inclusion; want to be recognized for their contributions to the sector both in the past and NOW. Want to be asked questions about their work in the sector, want the next generation to learn from them INFLUENCERS: Martin Luther king, Jr., Gloria Steinam, The Beatles, tv, vietnam war protests This generation was truly responsible for formalizing and implementing what the previous generation had created– learning by doing, improvisation – hasn ’t helped with transferring the knowledge and skills of the sector. Can be resentment from these folks who have worked SO hard for the sector and see the younger generations doing things in a more sustainable way. MOTIVATIONS: Money; Status; Toys; Fear of failure; Guilt; Transformation; Making a Difference; Accomplishments; Being best in class; Having choices; Sharing shows up as teamwork; Respect; Service; Process MESSAGING: Work hard and deserve it; Keeping up with the Jones ’; Didn’t get it as a kid so I am taking care of myself; Living the good life defined by materialism IMAGERY: Healthy
  • Self-reliant: bend rules if they need to Striving for work life balance Lives for today Distrust of corporate america The boomers are a hard act to follow, More self reliant – like to solve own problems Quick fix – sound-byte processing and instant gratification Collaborative and independent – they work well independently, but also on teams You will find more movement between jobs with this group Direct communicators – don ’t want to read between the lines. Just tell me what you want to say. Financially-motivated – huge amounts of debt from school loans, housing, etc. MOTIVATIONS: Money; Balancing work and home/family; Results; Efficiency; Money; Challenge; Flexibility; Healthy lifestyle; Hybrids – making things their own MESSAGING: Straight talk; Get to the benefit or result; No B.S or unsubstantiated claims; Informal; Reduce sexism; Increase Environmentally friendly verbiage; Humor; Thought provoking comments IMAGERY– Inclusive
  • Digital natives/Civic minded- think globally because they have more global community access than any other generation. Use their practical know-how to make an impact Independent but interactive – collaborative as well as independent. Multi-taskers, want customization MOTIVATIONS: Relationships; Varied experiences; Celebrity; Feedback; Mutual respect; Happiness; Materialism; Cause; Creativity; Community; Environment; Money; Having experiences MESSAGING: Green and NOT green washing; Sexy IMAGERY: Multiracial imagery
  • How have generational differences affected your organization?
  • Advice from the older generations that will inform their leadership Acknowledgement: commitment to the sector, new leadership ideas, structures and vision for the sector. Shared ownership of the sector Flexibility from older generations about new leadership qualities and management styles The real stories behind organizations and the sector – the good, the bad, and the ugly. Challenges: long hours make it difficult to have a life outside of work, going back to school, change jobs, look at different interests, have families; more plugged in than previous generations Reasons for working for an NPO: Enjoy giving back to the community - 82% Personal sense of satisfaction - 81.5%) Positive work environment - 58.3% Professional challenges - 57.2% Co-workers - 56% Working with clients: 42.7% Encouraging and supportive leadership: 40% Professional development opportunities: 37% Other: 3.4% Financial compensation: 2.8% Sherri to look for emerging leader corporate stats
  • This slides can be more about statistics that anything
  • These next few slides are really about raising money from small to midsize donors These slides really come from the Convio research on the Next Generation of American Giving
  • Emily ’s Comments: Want to pay most attention to this group and Gen X because they have the most money in the near future… Grew up with being sold on 30 second TV clips so they are savvy
  • Emily ’s Comments: Hard to recruit because they are viral Get email contacts from Facebook, mailing address from events May hear about your cause through direct mail or an event, but donate through a website or Facebook campaign
  • Largest group next to boomers so they are a good group to focus on for lifetime giving Similar to Gen X they may hear about your cause one way and donate through another channel. Like websites like,, – allow them to be ambassadors for your organization. Make sure you offer trainings and networking events
  • Here are some basic principles of fundraising that social media can help with. Social media is really related to individual donors Do you have ways to engage them? A great strategy is to recruit and work with younger board members who might have access to using social networks and who can engage their circle of friends or networks. Over 50% of the world ’s population is under the age of 30 96% of Millenieals belong to a social network EDA Consulting
  • Provide multi-generational families with resources like Resource Generation and 21/64 Junior boards
  • Junior boards, next gen professional groups
  • POP Example
  • Emily ’s Comments: Engaging Tomorrow ’s Donors Today provides a great assessment for your organization to determine where you are in working with the next generation of donors. But ultimately way to develop a plan.
  • It used to be simpler because there were fewer strategies to engage donors; now we have so many options due to social media that there needs to be more strategy.
  • One of the best things about social media is that there is potential for dialogue.  A direct mail appeal can't do this in the same way that a blog can.  Share news and opinions, take risks, and be ready for dissent and support. Your organization is trying to enhance engagement and you should be willing to post comments that challenge your opinions.  This is how strong dialogue begins.  You can always respond directly to positive or challenging comments, but allowing that space means you are open to the community. Of course, inappropriate or demeaning language is never acceptable.   First thing you need to do is LISTEN and solicit participation before asking for anything This is a way of building relationships One of the great things about social media is that it is a low-cost way to communicate with your constituents. It's a great way to tell current donors and supporters how their participation impacted a goal, clients, or the mission.  In fundraising, the closer we bring donors into the inner circle of our organization, the more likely they are to give and to give more dollars.  Using social media is a great way to open that door to current and prospective donors, building closer relationships. Takes time – look at other successful campaigns. It is harder to track the ROI.
  • Do this with board members as well.
  • Fundraising and the Next Generation August 2011

    1. 1. Fundraising and the Next Generation YNPN San Diego August 2011 Emily Davis, MNM EDA Consulting
    2. 2. Introduction•What is your org doing now toengage next donors?•What question do you wantanswered or discussed? YNPN San Diego 2
    3. 3. Generational MixGenerational MythsGenerational CharacteristicsImpact on PhilanthropyWHO ARE THE GENERATIONS? YNPN San Diego 3
    4. 4. What is the Generational Mix? YNPN San Diego 4
    5. 5. Challenge our assumptions about each generation• Traditionalists• Baby Boomers• Generation X• Generation Y/Millenials YNPN San Diego 5
    6. 6. Traditionalists (1900 – 1945)• Catalyst for NPOs• Top down management• Respect for authority• Separate home & work• Conformist• Value of work vs. personal meaning• Hardworking, loyal, thrifty YNPN San Diego 6
    7. 7. Boomers (1946-1964)• Formalized sector• Appreciate hierarchy & inclusion• All about respect• Self-improvement• Strong work ethic• Optimistic & idealistic• Desire flexibility• Workaholic• Appreciate recognition YNPN San Diego 7
    8. 8. Gen Xers (1965- 1980)• Self-reliant• Quick fix• Collaborative & independent• Direct communicators• Financially-motivated• Look for results• Appreciate reward through external recognition YNPN San Diego 8
    9. 9. Millennials (1980 – 2000)• Digital natives• Independent but interactive• Questions the status quo• Desire mutual respect• Celebrate diversity• Express to express -- not impress• Acknowledgement for being her• Civically-minded YNPN San Diego 9
    10. 10. How has this affected philanthropy? • Development office • Prospecting • Cultivation • Stewardship • Communication • Retention • Priorities • Respect • Trainings YNPN San Diego 10
    11. 11. What Tenured Professionals Want • Next Gen Training • Acknowledgment • Engagement • Respect for legacy • Dialogue YNPN San Diego 11
    12. 12. What the Next Gen Wants • Advice • Acknowledgment • Shared ownership • Opportunity to lead • Flexibility • Sector history YNPN San Diego 12
    13. 13. Multi-Gen Development Office Solutions• Develop a pipeline thru training and recruitment• Integrate new ideas of nonprofit leadership and shift Boomers’ roles• Consider new models of leadership that distribute responsibilities• Recruit from within• Acknowledge new leadership• Shift ideas about diversity, mentorship• Evaluate and redesign current structures YNPN San Diego 13
    14. 14. Questions YNPN San Diego 14
    15. 15. Why engage the next gen?Next gen philanthropy styleEntry points and engagementMULTI-GEN PHILANTHROPY YNPN San Diego 15
    16. 16. What age does lifelong giving start?• Teens?• 20s?• 30s?• 40s?• 50s?• 60s?• 70s? YNPN San Diego 16
    17. 17. Why Engage the Next Gen?• Transfer of wealth• Lifelong giving• Time, talent, and treasure• Networks• Enthusiastic• Ambassadors YNPN San Diego 17
    18. 18. Fundraising from Traditionalists• Direct mail and peer-to peer fundraising is best• Write checks• Smaller group• Lifelong giving began in their 30s• Less opportunity for new NPOs• Protects privacy YNPN San Diego 18
    19. 19. Fundraising from Boomers• Mix both new & traditional strategies• Plan their giving• Consider operational & overhead costs• Use mainstream media as an entry point• Lifelong giving begins in their 30s YNPN San Diego 19
    20. 20. Fundraising from Gen X• Friends/family/peers are influencers• Stories have a greater impact than loyalty• Consistently give largest gift to the same charity annually• Donate the most through websites (30%)• Hard to recruit to your cause YNPN San Diego 20
    21. 21. Fundraising from Millenials• Philanthropy is time and money• Lower cost to recruit because they are online• Multi-communications approach• Engaged in fundraising for orgs• Donate in a variety of ways YNPN San Diego 21
    22. 22. Generational Philanthropy* *Courtesy of Understand Frame your Choose Your Elicit Their Say Thank their message Medium Response You philanthropyPre WWII Giving is the right Traditional Traditional org Check in the mail Thank you letter thing to do organizational methods or card messageBaby Giving makes me Tell a story focusing Telemarketing Over the phone Thank you letter feel good on impact from client orBoomers letter illustrating impact of their giftGen X Giving Use a formula: $X Peer to peer asks Online or thru Accounting of accomplishes my provides Y well for payroll deduction how funds were goals Z community used and results were achievedGen Y Giving is one tool I Discuss multiple Online gifts and Online gifts & Interactive thank use to make a methods of volunteer hours volunteer hours you that difference in the involvement encourages other world forms of involvement YNPN San Diego 22
    23. 23. Where are they?• Existing donors• Volunteers• Young professional events• Media (i.e. 40 under 40)• Colleges & universities YNPN San Diego 23
    24. 24. Entry Points• Events – tiered fees • Giving Circles – tiered• Partner with young fees professionals’ groups • Volunteering• A-thons • Board and committee• Peer to peer networks participation• Family • Planned Giving• Philanthropic resources • Nonprofit Start Ups YNPN San Diego 24
    25. 25. Family Philanthropy• Major donors have children & grandchildren• Family legacy• Engage younger generations and older generations• Listen & learn about what the next gen wants• Provide resources & networks YNPN San Diego 25
    26. 26. Next Gen Engagement• Create ambassadors• Provide trainings• Offer networking & resources• Bring on as volunteers, staff, board members• Listen and learn• Snowflakes YNPN San Diego 26
    27. 27. 6 Steps to a Next Gen Campaign or Event1. Identify young donors and volunteers as leaders.2. Use existing or create planning team.3. Ask team to design & implement fundraising event or activity.4. Provide support!5. Host a successful campaign/event.6. Evaluate campaign or event. YNPN San Diego 27
    28. 28. Assess Your Organization*• Mission appeal• Resources & capacity• Involvement• Track donor giving & participation• Ability to modify communications• Culture shift• Web presence• Champions• Campaigns for young donors• Current donors YNPN San Diego 28
    29. 29. Relationships Don’t Change• Cultivate, steward, and solicit• Recognize• Multi-channel communications• Meet one-on-one• Develop ambassadors• Use social media as stewardship, not for solicitation• Effective database YNPN San Diego 29
    30. 30. “This is not the first time that nonprofit organizations and fundraisers have had to adapt to new technologies. The radio, television, newspapers, telephones, fax machine, and direct mail have all affected how we raise money. Some of the new methods that have evolved are more successful than others, and not all of them have been used with equal success by all nonprofits.” - Ted Hart and Michael Johnston in Fundraising on the Internet YNPN San Diego 30
    31. 31. 10 Tips About Social Media1. Social media is A tool, not THE tool.2. Social media is a plant3. Add value4. Listen & create dialogue5. Prospecting, cultivation, & stewardship YNPN San Diego 31
    32. 32. 6. It ain’t free7. Not everyone “Diggs” social media8. Have a plan9. Connect with other fundraising efforts10. Be patient YNPN San Diego 32
    33. 33. Questions YNPN San Diego 33
    34. 34. Taking the First Steps1. Pair up with someone in your organization2. Why do you want to work with next gen donors?3. What are 3 things you can do today?4. How will you make those happen?5. Share and brainstorm. YNPN San Diego 34
    35. 35. 5 Things To Do Today1. Make a Plan2. Watch other orgs3. Attend trainings & ask for support4. Invite participation5. Support new ideas YNPN San Diego 35
    36. 36. Resources• 21/64• Resource Generation• EPIP• National Center for Family Philanthropy•• Fundraising and the Next Generation (coming in 2012!)• Working Across Generations• The Networked Nonprofit• The Next Generation of American Giving YNPN San Diego 36
    37. 37. Thank You! Emily Davis, MNM EDA Consulting (303) 652-7536 Twitter: @edaconsulting YNPN San Diego 37