In America, Millennials now account for more than $1 trillion in consumer spending. By 2025, Millennials will comprise up to 75 percent of the work force. They are also set to make up about one in every three adults in the United States by 2020.
It’s little surprise then, that Millennials have become a significant target demographic for charities and nonprofit organizations. However, strategies that have been effective for decades for eliciting donations from Baby Boomers and Generation Xers are not as effective when it comes to connecting with Millennial donors.
Millennial Giving Habits
Before we can understand the methods required to connect with Millennial donors, we must first try and understand the giving habits of Millennials. The Millennial generation is one that lives largely by its own rules. Members of this younger generation, born between the early 1980s and the early 2000s, is unlikely to make a donation simply because a charity or nonprofit organization reaches out. Even the alma maters of recent Millennial grads are typically receiving less in the way of donations from younger graduates, than they are from older alumni.
So, what really puts Millennials in the mood to give? Well, there are a few things:
Making a Difference
Millennials care about causes they deem worthy and things they are passionate about. For example, let's say a Millennial donor feels strongly about protecting the welfare of animals. However, the donor does not want to donate to PETA, since it is one of the biggest animal charities.
A Millennial donor will be more likely to want to give to a smaller, local animal center — somewhere they feel their donation will make a difference. On the whole, the Millennial generation prefers to give to organizations where they feel they can make the biggest impact, regardless of scale. Often that translates into Millennials being more inclined to give to a local animal shelter, rather than a national organization like PETA.
Which leads us to another aspect of the giving habits Millennials hold close; personalized stories. Millennials prefer to give to organizations that personalize their approach. They want to know the complete story of how their contribution affected a particular cause. Millennial donors want to know specifics on how their gift made a difference.
How ExactAsk Can Help
Because of the particularities of the Millennial donor base, it’s important for fundraising campaigns to consider tactics that are better-suited to connecting with this younger demographic.
This is one of the areas where ExactAsk can be of help.
ExactAsk is an analytics software program that precisely generates a specific donation amount that development teams can target from a specific donor. ExactAsk helps nonprofit and charity organizations maximize their revenue through more than simply asking for more money. ExactAsk uses its set of algorithms to calculate a specific amount to ask for, based on what a donor can reasonably be expected to give.
The perception of Millennials as a self-involved, selfish generation was never entirely fair or accurate to begin with. As this younger generation grows up, it is fast-becoming the most powerful demographic in terms of spending.
For charity and nonprofit organizations looking to Millennials for their fundraising needs, it’s largely a matter of defining the right methods and approach to connect with this younger generations. Contrary to what you may have heard, Millennials do care. But they care about specifics, they prefer to make a genuine difference on a smaller scale, and when it comes to causes they believe in, they are more likely to be moved by personalized stories.
Curious about how else you can reach millennial donors? Contact us today.