New Donors: How Generation Z and Millennials are changing the world of charity

🌍Generation Z and Millennials are increasingly interested in donating to causes that address basic needs. However, despite this, donations for education are becoming less popular with each younger generation. This trend is confirmed by data from the "Next Generation of Philanthropy" report by the Lilly Family School of Philanthropy.

Since 2008, charitable donations across all generations have declined. People in different age groups are donating less compared to 2003.

🧐Who are Generation Z and Millennials?

Generation Z includes those born from the mid-1990s to the early 2010s, while Millennials were born between 1981 and 1996. Both generations are eager to explore new ways of giving and are more focused on addressing current social and environmental issues.

📊Priorities of the new donors

There are similarities in priorities when it comes to philanthropy. Research shows that different generations agree on the top three areas of focus: religion, basic needs, and purpose-driven organizations. The generations also agree on the importance of issues such as COVID-19, education, arts, and youth. However, differences are seen in approaches to international, environmental, and health issues.

🌱How does the new generation approach philanthropy?

"Next-generation donors are problem-driven and prefer flexible approaches to philanthropy with fewer restrictions," say the report's authors. They also value trust-based, long-term relationships with the organizations they support. Additionally, their approach to giving goes beyond traditional methods and includes activities such as ethical consumption, social impact investing, and using social media to create change.

Young donors are more interested in environmental and social justice issues than older generations and respond quickly to current events and global challenges. They often begin their philanthropic journey through volunteering, using this time not only to serve but also to learn about nonprofit organizations.

💡How are new donors using online platforms?

Modern donors love to use online platforms, such as crowdfunding and peer-to-peer funding. These platforms make the donation process more transparent and personalized, and they also foster community building around campaigns, making them more effective. Crowdfunding donors tend to be younger, better educated, and less religious. The average age of crowdfunding donors is 44, compared to 50 for traditional donors.

🖥The future of philanthropy: The tech-forward approach of the new generation

Next-generation donors are actively using technology in all aspects of philanthropy, including online exchanges between donors and organizations, advocating for causes on social media, making online donations, and accessing resources. In the future, such technologies will increasingly contribute to creating transparent and efficient platforms for changing the world.

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