(2015 takeaway: Millennials are the next great giving generation, and they donate via mobile technology.)
After 5 straight years of growth in the fundraising world (2014 topped previous records, pulling in $358.38 billion in philanthropic dollars, and 2015 will likely be even bigger), things are looking good for nonprofits.
The sector has risen from the financial disaster of 2007 faster than other industries. Nonprofits are becoming more adept at deploying technology and reaching the digital marketplace. And, to top it off, #GivingTuesday has changed the game, infusing the holiday season – long overshadowed by the rampant consumerism promoted by days like Black Friday and Cyber Monday – with a philanthropic spirit.
This last component – #GivingTuesday – is also having a huge impact on how nonprofits organize their fundraising calendars. Combined with the increased significance that millennials possess as a charitable demographic, there are a couple key takeaways from last year that will better position nonprofits to thrive in 2016.
While year-end giving has always carried great weight – setting up fundraisers with the bulk of their annual revenue – December’s importance has shifted heavily to #GivingTuesday. With the day’s skyrocketing popularity, it is fast becoming a competitive flashpoint for organizations looking to secure their financial situation going into the new year.
An unintended consequence of #GivingTuesday may be tapped giving. As more and more charitable individuals (including millennials, who are more likely to give small amounts online) make gifts on #GivingTuesday, they may be less responsive to appeals later in the month. This means that the fundraising potential of December may be shifting to the beginning of the month, requiring nonprofits to refocus their strategies and energies in order to finish the year off with a bang.
Another essential area where nonprofits need to pay attention is millennial giving. Defying predictions that the generation would be self-absorbed, millennials are displaying great philanthropic character. In 2014, 84 percent of millennial employees donated to a company cause. Of those that didn’t donate through work, 78 percent donated on their own. For #GivingTuesday 2015, one out of every three millennials in the United States were projected to participate in some capacity.
It’s evident that millennials give. But how to solicit their gifts? They value simplicity and transparency. It is absolutely essential for nonprofits to adapt to mobile giving strategies and digital infrastructures, meeting their desired audience’s attention where it is being directed – namely, on smart phones. Furthermore, nonprofits need to be clear about how solicited money will be used. Millennials need to see the impact they are making. Visualize operations through graphics and video, and quantitatively explain the difference that donors are making.
While the forecast is good for fundraisers, it is essential that they keep on their toes in order to keep a head up on competition. Following these trends will, in part, aid in those efforts.