Impact of Generational Differences on Charitable Giving
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1 Impact of Generational Differences on Charitable Giving Presented by: Victoria M. Bixel, President David W. Mehr, Executive Consultant Semple Bixel Associates, Inc. Tuesday, February 10, 2015
2 History of Philanthropy 1641 Clergymen from London for Harvard University 1700 s Benjamin Franklin Do not neglect those whom you are sure will give nothing, for in some of them you may be mistaken s Campaigning and volunteer recruitment 1900 s Andrew Carnegie and John D. Rockefeller the establishment of foundations and philanthropic efforts 2000 s Bill Gates, Warren Buffet, Oprah Winfrey 2015 Michael Bloomberg, Mark Zuckerberg, Carlos Slim 2
3 2013 Contributions: $ Billion by source of contributions (in billions of dollars - all figures are rounded) 2014 Giving USA Foundation Source: Giving USA Foundation/Giving USA
4 2013 Contributions: $ Billion by source of contributions (in billions of dollars - all figures are rounded) 2014 Giving USA Foundation Source: Giving USA Foundation/Giving USA
5 Today s News! Ice Bucket Challenge Social Entrepreneurship/Venture Philanthropy Data, data, data Return on Investment (ROI) Impact, impact, impact! 5
6 Social Media Statistics Facebook refers 29.4% of traffic to donation pages on #Giving Tuesday. Artez International Fifty-five percent of those who engage with nonprofits via social media have been inspired to take further action. Waggener Edstrom For every 1,000 fundraising s sent a nonprofit raises $17. M + R and NTEN Monthly donors give 42% more in one-year than one-time donors. Network for Good Sixty-four percent of Millennials prefer to fundraise through walk/run/cycling events. Millennial Impact Walk/run/cycling event fundraisers who send more than 15 s raise 76% more than non- senders. Blackbaud 6
7 Social Media Statistics The average nonprofit crowdfunding campaign raises $9, craigconnects Online giving grew 13.5% in Blackbaud Ten percent of annual giving occurs on the last three days of the year. Network for Good Digital Giving Index Sixty-four percent of donations are made by women. Everyday Hero Nonprofits share a daily average of 1.2 updates on Facebook and 5.3 tweets. M + R and NTEN Thirty percent of nonprofits are experimenting with Instagram. Nonprofit Marketing Guide 7
8 Crowdfunding The practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet. 8
9 What it s REALLY about Building Engaging Sustaining RELATIONSHIPS! 9
10 The Generations World War II Greatest Generation Baby Boomers Generation X Millennials 10
11 Generation Breakdown* World War II ( ) tend to value hard work, dedication, sacrifice, fiscal conservatism, respect for authority, respect for authority and formal rules (an institutional attitude), and an education. Baby Boomer ( ) tend to value optimism, teamwork, work ethic and personal gratification, growth and success. Generation X ( ) tend to appreciate diversity, newly emerging techno-literacy, fun and informality, a latchkey generation s selfreliance/independence and being entrepreneurial. Millennials (After 1981) tend to value self-expression, a balanced lifestyle, a relaxed work environment combined with meaningful work, resiliency, instant delivery of everything, positive reinforcement and a keen sense of social responsibility. *Sobel & Co., LLC Bridget Hartnett, CPA, PSA; Ron Matan, CPA, CGMA, PSA, Fall
12 Motivation for Philanthropy* The desire to express faith To express love for fellow man To perpetuate the American Dream To help secure or assure To help build and to invest * Not on this Board You Don t, Arthur C. Frantzreb, Bonus Books, Inc. Chicago
13 Why People Give Personal concern People give to people Belief in institution Confidence in leadership Agree with plans Prospect was asked Tax considerations 13
14 Why People Don t Give Don t value mission Don t believe organization is stable Absence of powerful trustees/volunteers Concerns about management Wrong people solicited Inadequate cultivation or follow up No one asked No one thanked donor for first or recent gift or pledge 14
15 Traditional Giving Patterns Boomers & WWII give to Alma Maters and religious institutions Generation X & Millennials give to fighting disease and children s programs. Millennials are passionate. Boomers & WWII give out of obligation and sense of duty. 15
16 Baby Boomers Represent 43% of Giving USA* ($47 billion a year) More likely to engage in monthly giving Respond to direct mail, but are engaging more in online giving Highly educated, analytical and skeptical* *Blackbaud: Next Generation of American Giving Study *NY Times Why Am I A Challenge for Charities 16
17 World War II Those 74 years and older are fastest growing demographic among social network users 77% prefer to mail checks to nonprofits Enjoy engagement, relationship building and one-on-one time Blackbaud: Next Generation of American Giving Study NY Times Why Am I a Challenge for Charities? 17
18 Generation X* Multi-channel donors Impact is essential Enjoy peer-to-peer fundraising and workplace philanthropy Use social media for informational purposes *Learning Who Gives: How Generations X, Y, Baby Boomers & Matures Donate 18
19 Generation Y/Millennials* The social generation More likely to give at retail store checkout and purchase products to support a specific cause Gifts made through mobile, website, apps *Learning Who Gives: How Generations X, Y, Baby Boomers & Matures Donate 19
20 Wine & Cheese or Martinis? Walkathons across generations Casino Nights younger generation Gallery Events mature generation Ice Buck Challenge across generations Van Gogh & Pinot Noir younger generation Galas/Benefits mature generation 20
21 World War II & Baby Boomer Engagement Letter Phone Call Face-to-Face Volunteer Opportunities 21
22 Generation X & Millennials Engagement Facebook Twitter Instagram Text Invitations Virtual Tours Volunteer Opportunities 22
23 Ingredients to Fundraising Success 1. Leadership 2. Prospects 3. Case for Support 4. Urgency 5. Communication Internal and External 23
24 Contact Information: Victoria M. Bixel, President David W. Mehr, Executive Consultant Semple Bixel Associates, Inc. 653 Franklin Avenue Nutley, NJ
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More information"It's an extreme sport, Running and Fundraising!"
"Never think you need to apologize for asking someone to give to a worthy objective, it is the same as you are giving an opportunity to participate in high-grade investment. The duty of giving is equal
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