Why We Need Millennials—How Generation Y is Redefining Philanthropy

Why We Need Millennials—Lazar Finker

In a recent article of mine, I wrote about how, in 2016, millennials proved that they can have a significant impact on the philanthropy sector. Now, I’d like to delve a little more into this generation, what drives them, and why they have become a valuable asset to the nation.

The term “millennial”—used to define anybody born between 1980 and 2000—is often the subject of derision. Frequently characterized as lazy or oversensitive, studying their giving habits has revealed a much more complex truth. As individuals attuned to recent technology trends, millennials have forced nonprofits to reconsider how they reach out to potential donors. The diversity of social media platforms has given organizations more ways to reach their audience, but has also given them more concerns about how to construe their message.

This is because studies have found that millennials seek a certain authenticity when it comes to causes to support. They don’t just want to give for the sake of giving—they want to be emotionally invested in the charities that they donate to.

Nonprofits will have to adapt their message with consideration to a new generation of givers and realize that it’s not about being trendy—it’s about being passionate about a cause and being willing to engage with both the people they’re supporting and those supporting them.

Millennials, often of modest financial status, are able to give less, but the majority are more than willing to volunteer portions of their time and money to help causes that they feel invested in. In many ways, charity work is tied intrinsically to social activism, the latter reflecting the generation’s desire to affect change in the world.

Indeed, millennial philanthropy is often marked by social connections. The cynical among older generations might argue that sharing charity efforts is done for the sole purpose of gaining attention, but I’d like to believe that the social aspect of charity galvanizes more individuals to action.

For the first time in 2016, an organization attempted to learn about millennial charity habits from their point of view rather than that of nonprofit organizations. Achieve, a research agency, and Case Foundation, an innovative philanthropy foundation, partnered to study the generation’s behaviors.

What they found was that millennials are more inclined to change jobs, relationships, and lifestyles more than their older counterparts. Whether this is positive or negative is up for debate, but the organizations also discovered that this fluidity also encourages dedication to a multitude of causes, regardless of how they got involved with them.

So what does this mean for the future of philanthropy?

It means that nonprofit organizations will need to be more visibly active in communities if they want to gain donors. Technology is, as always, a growing vector for micro-donations, and can enable millennial contribution with a minimal amount of effort.

The connectivity afforded by social media reveals many causes all competing for attention. Oddly enough, this forces nonprofits to improve their branding and marketing if they want to stay afloat, a seemingly disingenuous prospect that can nevertheless lead to a positive outcome.

So, like it or not, the future of our country is in the hands of millennials and, all things considered, I’m not too worried about it. Like the causes that they champion, they strive for authenticity and forward progress, and bring an ardent passion to everything that they do.

Philanthropy in 2016—A Look Back, and a Look Forward

Lazar Finker Talks Philanthropy in 2016Another year has come and gone, and with the new year comes more chances to give back and help those in need. Technology, always improving and changing the landscape of our nation, has altered philanthropic efforts a great deal. Additionally, increased social awareness has driven the millennial generation to contribute to causes that they are passionate about.

With recent political turmoil and deaths of beloved celebrities, it can be easy to condemn 2016 as a subpar year. However, the philanthropy sector paints a very different picture, demonstrating that, for all of the unrest, the number of caring souls willing to make a difference is always growing.

The growth of e-commerce platforms has made donating easier and more productive than ever. Those looking to make charitable contributions are not only able to easily find an outlet, but are more capable than ever of ensuring that their money directly funds a cause that they care about. Additionally, the volume of information available online has led to greater scrutiny in charity, as sites such as Charity Navigator have promoted transparency in nonprofit organizations in a way that has never been seen before.

Perhaps one of the more surprising statistics to see when reviewing this year’s philanthropy efforts is the amount contributed by individuals and households rather than larger foundations. These donations make up a majority (around 70%) of giving for the year, and goes a long way in demonstrating the change that micro-donations can make. Growth in personal incomes has enabled more and more families to give back as much as possible.

Another notable trend is the rise of wealthy millennials are increasingly concerned with balancing work with personal values. Mark Zuckerberg, notable for choosing to donate 90% of his wealth to charity, is the wealthiest millennial on the planet, but in many ways exemplifies the attitude of the generation: determined to make a difference. Often derided as “special snowflakes,” we must understand that millennials may very well be paving the way for a new kind of collective philanthropy.

Still, even though 2016 was a good year to give, it behooves us as a country to look ahead to what we can accomplish in 2017. After the ball has dropped in Times Square, what can we expect next?

Well, so far, projections are looking positive, with an improved GDP cited as reasons for individuals and organizations to give more on all levels of society. New management tactics have served nonprofit organizations well, and now, they’ll have to find new ways to grow to avoid stagnation.

Collaborative efforts between multiple nonprofits are one way for charitable organizations to improve in 2017. Overlapping support networks can broaden the horizons of existing charities while hammering home the message that nobody undertakes a philanthropic effort alone.

An increased adoption rate of technology, both among individuals and organizations, can assist in bolstering peer-to-peer giving, which has become increasingly popular as of late. Giving can now be done at the push of a button, and the connectivity of technology can spur us to imitate peers that have already donated.

The philanthropy sector, having already undergone moderate growth in the past decade, continues to stabilize and improve incrementally. 2016 is a notable year for the diversification of the tools that organizations can use to promote their causes and spread awareness to the rest of the world.