The philanthropic sector is poised for a significant transformation. Almost $124 trillion in assets is set to pass down to younger generations in 2048, most notably millennials and generation Z. These donors are active, informed, and deeply committed to specific causes.

To build a sustainable future for your association amid these changes, you must rethink your long-term giving strategy. At the same time, these younger donors are not waiting for their peak earning years to start making an impact.

Pivot From Brand Loyalty to Issue-First Philanthropy

A study from the Indiana University Lilly Family School of Philanthropy found that “generation Z (born between 1997-2012) and millennial (born 1981-96) donors are more focused on supporting issues than on specific organizations and consider themselves to be active social change agents.”

Younger donors don’t care as much about supporting specific brand names but put much more stock in the effectiveness and purpose of the organizations they’re involved with. Invite them to become true partners in your mission by spotlighting the specific work you do to improve the world.

For example, instead of sending a basic request for contributions to your general fund, show how a donation directly supports a scholarship for underrepresented students in your industry or funds a specific research report on emerging sector trends. When you lead with the issue, you invite young donors to join a movement rather than just support your brand.

Preference for Mobile and Social Giving

The Lilly School study also found that millennial and gen Z supporters are highly tech-savvy, leveraging social media to advocate for causes they care about, making online donations, and engaging in crowdfunding at significantly higher rates than older generations. Appeal to these preferences by taking these steps:

• Integrate digital wallets. Bloomerang’s “Mission Retainable” report found that 24 percent of donors prefer digital wallets, making them the third-most-popular donation method. However, less than 3 percent of fundraisers believe PayPal, Venmo, Cash App, and similar digital wallets are the preferred payment method for their donors. Incorporate digital wallet options into your online donation form to enable one-touch transactions.
• Connect with young donors on their preferred social media platforms, including TikTok and Instagram. These platforms are where younger donors discover causes and engage spontaneously. Consider creating online forums for supporters, such as a Facebook Group. These groups can make giving feel more like a social effort, which appeals to young donors looking for a sense of community.
• Enhance your mobile giving campaigns with robust text-to-give capabilities that enable you to reach supporters anytime, anywhere on their phones. According to the “Mission Retainable” report, younger donors increasingly prefer text messaging as their primary communication channel because of its immediacy and personal touch. However, only 13 percent of fundraisers use text messaging to engage supporters.

Desire to Engage in Direct Action and Volunteering

According to Bank of America, 71 percent of younger donors prioritize direct action, which includes volunteering, fundraising, and mentorship. Donors don’t just want to hear about your mission—they want to become a core part of it.

Associations are uniquely positioned to offer this kind of multifaceted engagement. Engage your members and supporters in direct ways:

• Create micro-volunteering opportunities. Allow young professionals to contribute to high-impact work in short sprints, such as mentoring a student for an afternoon or reviewing a legislative brief.
• Offer leadership positions within your association specifically geared toward young professionals. This could include the opportunity to serve as the Young Professionals Member Council committee chair.
• Launch peer-to-peer fundraising campaigns. Enable young donors to take an active role in fundraising.

Need for Real-Time Impact Reporting

Trust is the currency of the next generation. Studies have found that 66 percent of millennials track results for most or all nonprofits they support, compared with just 32 percent of baby boomers.

Make it easy for young donors to find the information they need by making your fundraising efforts as transparent as possible. This could involve:

• Sending a short video update from a scholarship recipient
• Sharing a real-time dashboard that shows the progress of a specific advocacy campaign
• Incorporating a graphic on your website that displays the percentage of your funding that goes directly toward mission-driven projects

Wrapping Up

The evolution of the giving landscape is an opportunity to revitalize your mission with new energy and grow your non-dues revenue streams. Embrace issue-focused campaigns, frictionless mobile tools, and transparent impact reporting to build a bridge to the next generation of donors.