Tad Druart, Convio

Anecdotally and intuitively, you know that changing demographics and technology are driving a shift in your engagement with donors, volunteers, event participants and other people your organization relies on to fulfill your mission. That's one of the reasons you soak up all NTEN has to offer about technology and engagement. Do a Google search and you can find a great deal of research on virtually all aspects of interests, attitudes and aptitudes for Gen Y, Gen X, Boomers and the Matures.

What has been missing is information that how different generations learn about, engage with and donate to charitable organizations -- until now.

Convio, SeaChange Strategies and Edge Research (the team the brought you insight into the online habits of major- and mid-level donors in the "Wired Wealthy" research) have produced a first-of-its-kind national research study into the charitable giving behaviors and attitudes across Gen Y, Gen X, Boomers and Matures.

"The report of my death was an exaggeration." Mark Twain

Like Mark Twain's famous quote, there is good news in the data -- the death of direct mail by some has been exaggerated -- but, when one looks at the data direct mail will not remain the dominate channel for soliciting and collecting gifts that it is today. Chart 1 below shows that the next generation of donors, Gen X and Boomers are truly multi-channel. And while they still give through direct mail it is not the dominate channel that it is for the Mature donor. It is not a coincidence that direct mail acquisitions have been declining steadily in recent years, a phenomenon which pre-dates the current recession. While direct mail remains viable the impact over the long-term will diminish, particularly without integration with other communications, marketing and fundraising channels. Unfortunately for fundraising professionals, the data suggests that unlike direct mail's domination as a fundraising channel today, no one channel is likely to dominate in the future -- it will probably remain the primary (not dominate) channel for several more years, but start preparing for changes in the future.

Chart 1

"Duh," Tad Druart's daughter

For many of you reading this article, like one of my teenage daughter's favorite responses, this will be a big "duh" moment... Multi-channel integration is more important than ever. Duh. As you can see in chart one, the channels for giving are broad for the next generations of donor (note that even Matures report giving through many channels, but at 77%, "check by mail" is dominate for Matures). While there are modern database products like Common Ground that can help you manage the multi-channel engagement of the future, the biggest obstacle for many organizations might be organizational and operational more than the systems they use. The internal silos must be broken down to reflect the multiple channels and need for message consistency across those channels.

As you can see in chart 2, that's a lot of channels that people use and are important, so start breaking down those walls today. How many of you know that the message in tomorrow's direct mail piece is consistent with what the donor/prospect will find on your website? Is the message in next week's email consistent with the direct mail and the website -- and what the heck are people saying about us on Facebook and Twitter? Is it all consistent?

Chart 2 

Yeah, more people to do fundraising solicitations!

The study suggests that peers will play a bigger role in influencing donations. As the next generation of donors age they plan to give more and but are also more likely to currently volunteer to organize an event, become a participant fundraiser or help promote their favorite nonprofits via social media and their personal networks. Give these people and their peers the right tools and you can exponentially expand your development "staff." As you can see in chart 3 the future generations believe being asked by friends is most appropriate (note than Matures also believe this to be valid, but that direct mail piece still places a tad higher). Are you giving your supporters the tools and messages to influence peers?

You can see in the chart that direct mail is still appropriate. But understand that while the ask might come from a direct mail piece, the response might not come through that channel. This is going to make the response rates and causality that we can measure today become more difficult in the future. It is also very important to note that in our focus groups we learned that Boomers to an extent, but very strongly with Gen X and Gen Y, report that they feel more manipulated by direct mail than other channels. In the study data we see practices of the charities accepted by donors of all ages, but not necessarily embraced. The coming years will be very interesting to see -- will younger donors adopt more of the practices of the Matures or will organizations that embrace the preferred channels of Gen X and Boomers "out compete" peer organizations that do not shift investment and focal points?

Also keep in mind (Chart 2) where they are going to get information. It reinforces the need for consistency. If a friend asks and they go to your website, but find nothing about the program, or the email newsletter does not relate you might have lost the opportunity.

Chart 3

Does X+Y+Boomer equal fundraising success?

The Gen Y donor reports that she/he gives an average of $341 a year or close to $11 billion in total to charity. They report having more time to give than money. The study shows that they also like to support programs that provide a promotional give-away or support their social involvement such as runs, parties, etc. This generation also solicits parents and others older generations to support them in with their causes -- we know this as Boomers and Matures report sponsoring family or friends in runs and walks, but not participating, while Gen X and Gen Y report participating but doing less sponsorship. One can argue that the dollars available from Gen Y do not warrant investment in programs to acquire and cultivate them. However, data shows you can and will reach them through multi-channel programs designed to reach Boomers and Gen X; and they will find you if they are interested -- assuming you have a good website, social media presence and a compelling message.

Gen X and Boomers though are worth the time and effort:

Gen X (b.1965-1980)

39.53 million Americans; 52% give

Avg. $796/year to 4.2 charities

Estimated $16.4 billion to charity

Baby Boomers (b. 1946-1964)

45.17 million Americans; 66% give

Avg. $901 to 5.2 charities

Estimated $22.8 billion to charity

"I knew it was getting harder!"

The data shows that it is not just the economy that is making fundraising harder. Throw the economy on top of the changing demographics, accelerating technological change and adoption by prospects, increased competition, and reliance by most nonprofits on antiquated donor databases that never anticipated the needs of a modern development office, then mix in inertia and it is no wonder we often hear, "it's getting harder to raise a dollar."

The good news is that organizations like NTEN are helping nonprofit professionals learn about, evaluate and adopt technology that can make you more efficient and effective. More research on the habits and needs of donors and prospects is making its way to the market. Organizations and vendors are sharing best practices and lessons learned to help improve the performance of the entire industry. And ,as the data shows, Americans are willing to engage and support the causes they believe in and they will remain accepting of your appeals. As members of NTEN you can have the satisfaction of being part of the generation of nonprofit professionals and an organization that help will build a modern and lasting approach to connecting people and causes in ways that change the world.

A white paper related to the study is available at www.convio.com/nextgen