Fundraising Strategies for Engaging Millennials and Gen-Z

In the ever-changing world of charitable contributing, non-profits must adapt their campaign strategies to engage a new generation of donors. Millennials and Gen Z are becoming increasingly influential, bringing with them unique perspectives and values that shape their approach to philanthropic outreach, not seen in the previous generational ages. Understanding and connecting with these younger generations is crucial for the sustainability and growth of any non-profit organization as they are now emerging sources of contributions.

Understanding the Giving Habits of Younger Generations

Millennials are those who are born between 1981 and 1996, and Gen Z, are defined as those born between 1997 and 2012. These two age groupings are distinct in their philanthropic habits when compared to the previous generations of Gen X and the Baby Boomers. Here are some key characteristics that define their approach and mindset to giving and should be considered for your own approaches:

Tech-Savvy and Digitally Engaged: Both Millennials and Gen Z have grown up with technology at their fingertips. They are comfortable using digital platforms for almost every aspect of their lives, including donating to causes they care about. Online fundraising campaigns, mobile-friendly donation platforms, and social media outreach are essential tools to engage these tech-savvy donors. It is important to recognize that a fundraising program needs to be able to meet the expectations of the end user.

Values-Driven Giving: Younger generations are highly motivated by their values, and they are open to discuss these values with their friends, family, and audience. They prefer to support organizations that align with their personal beliefs and are transparent about their impact. Causes such as social justice, environmental sustainability, and mental health often resonate deeply with them and these groups are well supported by these individuals.

Desire for Tangible Impact: Millennials and Gen Z want to see the direct impact of their contributions. They are less likely to donate to general funds and more likely to support specific projects or initiatives where they can see clear results. For example, donating to a local school fundraiser in their community wanting to send their students to Washington D.C. is more directly impactful than supporting a general education fundraiser event.

Peer Influence: Social proof plays a significant role in their giving decisions. They are influenced by the efforts of their friends and family support and are likely to participate in peer-to-peer fundraising campaigns. This could include ventures such as helping fund the local boy scout summer camp trip event or donating to buy new hockey equipment. Again, this blends in with the desire for tangible impact and how their charity can make a direct difference.

Experience Over Material: These generations value experiences over material possessions. Fundraising events that offer unique, engaging experiences—whether virtual or in-person—can attract their participation and support. This is important when considering if you will engage in selling a product for fundraising. It is important to choose a product that is meaningful and not wasteful. As these individuals are more environmentally conscious, they will not want to support products that will not be used or will be thrown away. Consider selling a product that can be recycled or reused or can offer a memorable experience.

Our sustainably sourced hand-crafted Holiday wreaths and indoor décor here at Mickman Brothers are a popular fundraising option to these emerging donors as they fit well within their value systems. These products are sold by a local nonprofit organization, are quality and high-perceived value items that offer a traditional and memorable experience with ties to the winter holidays. It feels rewarding to give a gift that also supports a good cause.

Strategies to Attract and Retain Younger Donors

To effectively engage Millennials and Gen Z philanthropy, non-profits need to develop their fundraising strategies to meet the preferences and expectations of these younger donors. Here are some strategies to consider:

Leverage Social Media: Social media platforms are powerful tools for reaching younger audiences and are often the preferred way to receive information for these age-groups. It is important that you create compelling content that tells your organization’s story, highlights your effort’s impact, and encourages sharing of this information. Focus on utilizing social media platforms like Instagram, TikTok, and Twitter, which are popular among Millennials and Gen Z. However, continue to push your efforts out on Facebook as well, as the older millennials and other generations still primarily use this platform. Social media should be considered a party, and your audience it's attendees.

Embrace Digital Fundraising: Offer easy-to-use online donation options and mobile-friendly platforms. Such options can be as simple as setting up a PayPal or Venmo account. Remember to consider any transactional fees that may occur and set any fundraising item’s price appropriately to cover these potential fees. Be cautious of solely collecting funds digitally, as your older sponsors may not have these technologies set up or may not be comfortable with donating in this manner.

Showcase Transparency and Impact: Be transparent about how donations are used and the impact they have. Consider using visuals, such as infographics and videos, to demonstrate the outcomes of your initiatives. Be sure to regularly update your donors on the progress and success of the projects they support. Your sponsors will love to see the updates and will want to share these with their peer groups and other social media contacts. This is essentially free marketing, and their outreach will help bring awareness to your cause.

Create Peer-to-Peer Fundraising Opportunities: Encourage younger donors to create their own fundraising campaigns on behalf of your organization. Provide them with the tools and resources they need to easily set up and share their campaigns with their networks. This can be as minimal as asking them to share a post on your organization’s behalf or holding a contest to see who can drive the most action.

Build Long-Term Relationships: Focus on building lasting relationships with your younger donors by engaging them through regular communication, personalized updates, and opportunities for involvement beyond financial contributions. If applicable, invite them to volunteer, join advisory boards, or participate in advocacy efforts. Be sure to remind them of the impact that their support had on previous fundraising efforts when your annual fundraiser returns.

Through understanding the giving habits of Millennials and Gen Z and implementing plans designed to their preferences, non-profits can effectively engage these younger generations and harness these individuals’ passion for making a difference in their local communities. As these donors continue to grow in influence, their support will be vital in driving the success and sustainability of non-profit organizations, like yours, for years to come.