For donors ages 20-35, celebrity endorsements offer little sway and personal asks trump technology

INDIANAPOLIS (April 7, 2011) – While the Millennial generation has often been characterized as a self-centered, technologically plugged-in and personally disconnected group, a new survey reveals that people ages 20 to 35 are in fact diverse, human and ready to give.

The second annual Millennial Donors Study conducted by Achieve and Johnson, Grossnickle and Associates (JGA) finds that of the 3,000 people ages 20 to 35 who responded to the survey, 93 percent gave to nonprofit organizations in 2010, with 10 percent giving $1,000 or more.

One of the key factors contributing to that generosity is an organization’s trustworthiness. Nearly 85 percent of respondents said they would be very or somewhat interested in giving to organizations they can fully trust; on the other hand, nine out of 10 donors said they would stop giving to an organization if it somehow lost their trust.

This year’s survey echoed a number of questions from last year’s but also delved into new areas and offered more detail in an effort to provide new insights into the giving habits of Millennials.

To download the complete study, learn more about Millennials and register to participate in a free Webinar on April 21, visit www.MillennialDonors.com.

To further explore the next generation of donors, join us on June 22, as JGA and Achieve partner with the CASE Foundation to present a virtual summit you can attend right from your desk.  MDS11 will feature national speakers challenging the traditional modes of fundraising and engagement. Watch for registration information soon at MillennialDonors.com.

The Center on Philanthropy at Indiana University will honor philanthropic leader Ted R. Grossnickle, CFRE, at the annual Indiana University-Purdue University Indianapolis (IUPUI) Spirit of Philanthropy Luncheon and Awards Ceremony on Thursday, April 22^nd in Indianapolis. 

The Spirit of Philanthropy awards recognize individuals, corporations, and foundations that have supported and contributed to university programs and departments through their gifts and voluntary service.

Grossnickle has been a key volunteer and supporter for the Center on Philanthropy for more than a decade.

“Ted’s visionary volunteer leadership plays an important role in helping to shape the Center on Philanthropy’s future,” said Patrick M. Rooney, executive director of the Center. “We are fortunate that he chooses to share his time, expertise and good counsel with us.”

Grossnickle currently serves as chair-elect of the Center’s board of visitors and leads its endowment campaign committee. A donor and member of the Center’s Sage Society, Grossnickle also chaired the Center’s campaign readiness task force.

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As you may have heard, Johnson, Grossnickle and Associates (JGA) and Achieve conducted a study of the giving habits and engagement preferences of more than 2,000 people between the ages of 20 and 40 (the Millennial Generation) across the U.S.

The full results of that study are in, and we think you will find them to be of high interest and value.  The study found that when Millennial donors get involved with a nonprofit organization, they not only want to give financially, they want to affect change and create direction, and they want access to the organization’s board leadership.  Contrary to their high-tech reputation, Millennial donors put a high value on face-to-face communication.

Ted Grossnickle, Senior Managing Consultant with JGA, said, “These responses suggest that if fundraisers want to attract Millennial donors, they’re going to need to change their approach and become more relationship-based.”

“This requires a shift in attitude among development officers,” said Grossnickle.  “The Millennials might not have the capacity to give large amounts now, but they have human capital and are willing to be evangelists to their friends and family.  Plus, in 20 to 30 years, they’re going to have plenty of giving capacity, and they’ll use that capacity to support organizations that have engaged them.”

To discuss the study, download it, and register to participate in a free Webinar on April 15, visit www.MillennialDonors.com.

 Click here to view the full press release.

That’s one of the key findings from a recent survey conducted by JGA in partnership with Achieve - an Indianapolis based consulting firm focused on strengthening fundraising programs and donor engagement (www.achieveguidance.com).  Furthermore, the results also suggest that a broad appeal for funds will leave many young potential donors looking for other giving opportunities.

Over the past three months, JGA and Achieve surveyed donors between the ages of 22 and 40 about their philanthropic giving, communication and relationship preferences.  While JGA and Achieve will unveil the complete results of the survey next month, some preliminary findings merit special attention – most notably, the data suggesting that more than 53% of donors in this age category will support only those organizations that provide specific information about where a donation is going.  In addition, it should be noted that more than 52% of these donors said they will not respond to general requests for support.

What does this mean for organizations?  If you intend to court next-generation donors, you’ll need to let them know what you plan to do with their resources before you receive them. Fail to provide this clarity and they’ll move on to organizations that make clear and concise appeals and include a specific call for action.

Want to learn more?  Stay tuned for the full survey results which will be made available in April.  Please submit your contact information here to receive the results as soon as they are released.  Until then, feel free to share your thoughts on the findings so far, by posting in the JGA comments section below.

Registration is free.  If you are interested in attending the webinar, please register here.

Angela will also moderate the special program, “Who Decides and Why it Matters: Married Couples and Charitable Decision Making,” presented by the Women’s Philanthropy Institute at the Center on Philanthropy at Indiana University from 3:45 – 5 p.m. on February, 11, 2010.  The program will be held at the IUPUI University Library Auditorium in Indianapolis.

If you are interested in attending, please contact Andrea Pactor at apactor@iupui.edu or 317.278.8990.

We want to hear from you!  Let JGA know your thoughts following the webinar or the program by posting in the comments section below.

Ted Grossnickle, Chairman and CEO of JGA, has also been on the move.  Ted recently spent three days in New York City conducting client interviews (and rubbing elbows with world leaders who were attending the UN General Assembly).  Fresh off the plane, Ted headed back to his alma mater, Wabash College, to give the Chapel speech to students, faculty, and staff on October 8th.  Early next month, Ted will be presenting the keynote address to the Lambda Chi Regional meeting at Wabash, and he is also authoring a chapter for an upcoming book which will address the trustee’s role in fundraising. 

Senior Consultant Angela White is also keeping busy with her work on behalf of the Women’s Philanthropy Institute.  On November 6th, Angela will speak on why gender matters in philanthropy at the University of Kentucky’s “Power of the Purse” presentation.  Angela will also speak at the inaugural fall symposium for the University of Oklahoma Women’s Philanthropy Network on November 19th.  The symposium will highlight the ways in which gifts “have enriched the academic life of the University” while also educating attendees on how they can make a difference.  

So, don’t be surprised if you happen to run into a JGA consultant…it seems they can turn up just about anywhere.

In the world of higher education, especially at private institutions, the conventional wisdom was always “the best and financially strongest institutions are those with the largest endowments.”  Strong fundraising over the past 20 years helped many institutions build large endowments, which became major sources of annual income. Large endowments were also viewed as “insurance” against the vagaries of economic downturns, protection against swings in enrollment, and a safety net from unforeseen financial emergencies or budget cuts by state legislatures. Bigger was always better when it came to endowments.

 

But life has changed in higher education and changed very rapidly. The value of most endowments, just like our portfolios and 401Ks, has plummeted and along with it many of its historical advantages. Today, institutions with the strongest “bottom lines” are likely to be those with strong management and business plans that work in today’s economy, not necessarily those with the strongest endowments.

To read the rest of Kris’s article, click here.

Recent media coverage speaks to the challenges nonprofit organizations face in the current economy. The loss in value of endowments, decreased fundraising (in some cases), and lower earned income (ticket sales, memberships, tuition), among other issues, have created a perfect storm of financial distress for some nonprofits.

To read the rest of Kris’s article, click here.

To download a PDF of the article, click here.