Young donors: 6 need to knows
In the next two decades there is set to be a seismic shift both in society and in fundraising with millennials set to become the richest generation in history with an estimated $90 trillion wealth transfer set to happen - £5.5 trillion of which will happen in the UK. This poses an interesting challenge for non-profits and charities or perhaps, an interesting opportunity.
With the over 70s becoming prolific silver surfers and spending 43mins every day using their devices (which is 10minutes longer than those in their 40s) is there a way to continue to deliver campaigns to core fundraising audiences whilst testing and expanding mechanisms that meet younger donors as they look to donate more this winter and in the years to come. In this post, we’ll explore a few ways to engage younger donors whilst not alienating your core group of current givers.
230,000 people under 35 in the UK have net financial assets of over £100k
Whilst the UK government survey put the average wealth of those 25-34yrs old at £66k, there is a significant pool of individuals who have more to give with 88% of these donating to charity already. This group has already been termed as the ‘generous generation’ providing an opportunity for organisations to build long-term relationships that embrace their desire to not only be a viewer to what their contribution creates and achieves but also an active participant.
38% donated £2k to charity compared to 5% of over 50s
There is sometimes a perception that this ‘avocado on toast’ generation have expensive daily consumption habits, overspending on coffees, meal deliveries and entertainment subscriptions and being unable to save. This seems a little generalist and harsh and certainly isn’t backed up by the statistic that sees those who have disposable income more likely to give more to charity than older audiences.
Donor Advised Funds (DAFs) can offer the personalisation they’re seeking
We recognise this group can have a high expectation when it comes to donor engagement - they want an organisation to talk to them differently if they’re giving for the first time versus again, to recognise a departure away from some of the traditional Regular Gift models and towards impulsive one off giving motivations. DAFs offer a way for funds to be organized to give in a way that involves the interest of the donor and can be merged with trusts and other assets. More than half (56%) of wealth under 35s are already familiar with DAFs with 65% saying they would be interesting in investing in a DAF in the future.
Poverty, homelessness, children and youth top issues audiences want to give to
For organisations in these sectors, it would be interesting to create a test case with previous and/or lapsed donors who sit within the under 34year old bracket. Knowing they respond to these areas, their personal experiences and that they want a participatory role when it comes to engagement (e.g. to be heard, included and understand their impact).
An email series designed to drive awareness and repeat gifts from donors with test routes giving mechanisms including peer to peer, crowd-funding and matched donation could be a nice way to further explore how, when and why they give again. For those giving regularly (over two times across an annual period) a branded series that brings more of an identity to the offering and invites feedback and provides a forum for further engagement could be a nice way to grow a core group of advocates for your cause.
Growing up online has shaped how they engage
A tech savvy group who spend a lot of time alone (15 hours of each day connected to the internet!) and we’re talking majority consumption (83%) on smartphones. This is a group supporting issues or causes versus organisations. That marks a huge shift in how and why they give and explains why one off donations aren’t in decline in the same way that direct debit gifts are.
A lot of charities across the UK are still behind the curve when it comes to meeting the needs of this digital donor and are often so focused on acquisition that they forget how important the first six months of engagement with a donor can be in increasing their average gift and lifetime retention rate.
Don’t go ruling out long form content
With content consumption overload and information fatigue comes the desire for slower, long form content that brings depth to a subject matter area that simply can’t happen in 30 seconds. Earlier this year TikTok started testing 30 minute uploads and the average user spends 95 minutes daily watching live gaming. With increased interest comes increased attention span. Though it is worth recognising that longer form content can come with a larger price tag - a brand or influencer partnership could provide the right forum to bring both together and to explore a related issue or cause area in more detail. Take the National Geographic and Nike’s Breaking2 documentary for instance.
Looking to reach and engage more younger donors? We’d love to hear from you.