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Van Houten,
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The Future of Fundraising: Engaging Millennials in Mission
By Sarah Van Houten PUBM 5900 Capstone in Public Service
5/30/15
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Executive Summary
Nonprofit organizations play an important role in society today. Nonprofits promote tolerance
and equity, improve quality of life, and strengthen the communities they serve. However as the Baby
Boomer generation begins its exodus, the issue of generational succession in the nonprofit sector poses
a threat to the financial sustainability of many organizations. Studies show that this generation behaves
differently than others in terms of donor preferences and giving habits. They place greater emphasis on
transparency and professional development opportunities, are more motivated by peers, are the most
tech savvy generation, and tend to make smaller gifts and act impulsively. Given the unique
characteristics of this generation, how they perceive and connect to philanthropy is of great interest to
nonprofit managers who wish to effectively reach and persuade this valuable audience with their
messages. Knowledge of how the Millennial generation views philanthropy and how this demographic
interacts with nonprofit organizations can help inform an organization’s strategy for engaging young
people and gaining new donors. By better incorporating inspiring messaging into appeals, showing
tangible impact and outcomes, utilizing graphics and videos on digital platforms, leveraging peer
influence, and creating broad opportunities for involvement, nonprofit administrators can align their
programs and communications to better engage their donors today and to come.
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Introduction
Fundamentally, Millennial donors are not that different from other generations. What people
want and expect from their nonprofit experience is relatively the same. All generations want to trust
that their donation will be used properly and feel good about their contribution. However, younger
donors and volunteers engage with causes differently than their parents and the generations before
them. Millennials expect more out of their nonprofit experience and the reality is that they can get
more than ever before largely due to technological innovation. Millennials want a compelling digital
marketing strategy to inspire and excite them and opportunities to get involved once hooked. They
expect transparency and accountability in reporting and multiple channels for outreach and donations.
However, the nonprofit sector faces formidable barriers to bringing more young people into its
sphere, most notably its limited financial resources. Budget constraints and revenue stagnation
continue to impede the ability of all organizations to compete for Millennial interest and involvement
(Hessenius, 2007, 2). Loyal supporters are not made overnight and cultivating relationships that lead to
major gifts in the future takes time and resources. Additionally, Millennials tend to give less than older
generations and in smaller amounts. They usually do not serve on boards or respond to traditional
methods of outreach, which further discourages investment in engaging this generation (Tandon,
2014).
Despite these challenges, their presence is making ripples in the nonprofit sector, influencing
how organizations communicate to all generations, and cannot be ignored. The nonprofit industry is at
a crucial tipping point where marketing and messaging are starting to lend themselves more to the
Millennial style of communication. According to a four-year summary of the Millennial Impact
Project, “organizations no longer can afford to cater only to older donors and volunteers. Today,
younger audiences demand that the nonprofits they support evolve and show true change in the issues
they address” (Millennial Impact Report, 2013). Nonprofit administrators must recognize that
involvement of young people is critical and that they need to act now in order to secure the future
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sustainability of their organizations.
There is no silver bullet solution to engaging an entire generation. However, there are certain
strategies that can be effective at capturing the attention of this elusive group. In this paper, I will
outline the differences between Millennials and other generations in terms of giving habits and
expectations and present a collection of current marketing and fundraising strategies that can be
employed to reach this younger demographic (see Figure 1.3). Five key factors that nonprofit managers
should consider are: 1) inspiration, which is comprised of appeals to emotion and storytelling; 2)
impact, showing the measurable effect and funding specific projects; 3) technology, having an up-to-
date website and utilizing compelling graphics; 4) social media, capitalizing on the power of peer
influence and leveraging your network; and 5) involvement, specifically concerning opportunities for
professional development (see Figure 1.1). I will supplement these findings with information gathered
from interviews with three local nonprofit managers: Erin Murphy, Director of Community
Engagement for the YWCA Seattle | King | Snohomish; Jessica Frederick, Development and
Communications Manager for Seattle Works; and Nathan Engebretson, Digital Communications
Manager for Planned Parenthood of the Great Northwest and Hawaii. I will conclude with a summary
of challenges that nonprofits face in implementing these strategies and provide some practical
solutions to address these difficulties (see Figure 1.2). Nonprofit administrators can use the chart below
and at the end of this paper as a guideline in their efforts to better engage the Millennial generation.
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Figure 1.1
The Millennial Factor
The Millennial generation, also known as Generation Y, is the youngest generation of adults
today. Defined by many demographers as ranging from 18-34 years of age, the Millennial generation is
liberal, self-expressive, racially and ethnically diverse, technologically savvy, and the most educated
generation so far. (Pew Research Center, 2010). 75 million strong, this upcoming generation is
projected to surpass the Baby Boomer generation as the nation’s largest living generation this year
(Fry, 2015). Millennials represent a significant segment of the population and will have a major
economic impact in the years to come. An Accenture report states that they spend $600 billion
annually and by 2020 their spending in the United States is expected to grow to $1.4 trillion annually
Key Factor Takeaways
Inspiration
Impact
Technology
Social Media
Involvement
• Appeals to emotion and empathy are more
effective than appeals to self-interest
• Incorporate storytelling into messaging
• Matching Gifts and Social Fundraising are
effective tools
• Show tangible impact and measurable effect
when possible
• Have an up-to-date and easy to navigate website with clear, concise mission statement
readily accessible
• Use colorful graphics and videos
• Leverage network that is already
active and engaged online
• Peer influence is a huge motivator
• Make opportunities for professional development and leadership available
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and represent 30% of total research sales (Donnelly & Scaff, 2013, p. 2). At this point in their lives,
Millennials simply are not as well positioned to give larger amounts, however they are a sizeable group
coming into a vast amount of wealth and represent a massive potential source of revenue in the near
future. Understanding and engaging young people now, in any capacity, is central to the future stability
and financial health of many nonprofit organizations.
Nonprofits are operating in a crowded, noisy marketplace and many are feeling the pressure of
increased competition. With a veritable bevy of choices and access to information at their fingertips,
Millennials are especially selective in terms of which nonprofits to invest their time and money. The
first step to grabbing the attention of the Millennial generation is to inspire them. Inspiration lies at the
core of what philanthropy is all about and a mastery of inspiration will open the door to not just the
youngest donors, but effectively all generations.
The Art of Inspiration
Over the past few years, the media has made a lot of assumptions regarding the Millennial
generation. The “Me Me Me Generation,” a term coined by Joel Stein in writing the cover story for
Time magazine in 2013, is used to describe the Millennial generation as lazy, entitled, and narcissistic.
To Stein’s credit his description is supported by “cross-generational survey data suggesting that
Millennials, compared to previous generations, are increasingly extrinsic and materialistic, placing
emphasis on money and image” (Paulin, Ferguson, Jost, & Fallu, 2014, p. 336). However, despite this
negative reputation, most young adults today want to make the world a better place and are committed
to giving back. According the 2013 Millennial Impact Report (now referred to as MIR), the Millennial
generation is interested in supporting a cause, helping others, and becoming “part of a community
that’s equally excited and eager to make a difference” (2013). Millennials prefer to work for a
company that promotes social responsibility and 87% of surveyed Millennials felt encouraged to
volunteer or participate in their company’s cause work and community initiatives last year (MIR,
2014). Jeffrey Arnett, a Research Professor at Clark University, described Millennials as the
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“Empathetic Generation” due to their heightened global awareness and penchant for social change
(Arnett, 2010).
An empirical study examined how Millennials are motivated to engage in charitable causes by
comparing the results of two different Facebook event pages. The study found that “others-benefit
appeals” are more effective than “self-benefit appeals” in soliciting supportive intentions, volunteer
intentions, and monetary donations (Paulin et al., 2013, p. 337). In other words, when seeking
Millennial support for social causes, it is better to stress the benefits others derive from these actions
than it is to emphasize personal gains (2013, p. 342). Furthermore, the study concluded the stronger
Millennials empathize with the cause, the more they intend to engage in both online and offline
supportive behaviors (2013, p. 347). This study provides evidence that Millennials tend to reflect more
of a “We” rather than “Me” generation and that incorporating messages that focus on the benefits of
others rather then the self and generate empathy for a cause, especially in a public arena, can increase
supportive behaviors (2013, p. 344). Given their generally tolerant attitude and generous behavior,
messaging that appeals to emotion, empathy, and action are especially effective with Millennials.
Storytelling
As Millennials are bombarded with philanthropic options, nonprofits need to ensure that their
ability to inspire is at the forefront of their marketing and fundraising strategies. Storytelling is a well-
known, widely used strategy in the nonprofit sector as it provides a great way to bring an
organization’s mission to life and is crucial for building meaningful relationships. There are many
types of stories but according to Brady Josephson of Charity Express, the most successful at engaging
Millennials are the ones that are the most inspiring in tone and nature (2013). One example is to
incorporate stories that place the donor as the “hero,” and empower them on a quest to contribute
(2013). Millennials, like most donors, want to know their role in the solution and they want to
participate in the outcome. Invisible Children, famous for their Kony 2012 campaign, is exceptionally
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skilled at framing a hero narrative compelling donors to help “end a war” and calling individuals to
action (Invisible Children, 2015).
In addition to stories about how individuals can contribute to a future outcome, stories about
the plight of a specific individual or stories about how other supporters like them are making a
difference are also very compelling (Josephson, 2013). According to the Institute for Giving, “it’s the
stories of the people you serve, of the volunteers in your organization, and of the wondrous ways your
services impact the life of your community. That’s what captures the imaginations of donors, and
draws them into your world wanting to be a part of it through their support” (Stone, 2012). Charity
Water, a nonprofit organization dedicated to bringing clean water to developing communities all over
the world is a great example of how nonprofits can effectively utilize storytelling in this sense. From
single mothers to 15 year old leaders, their website is filled with stories of individuals that have
personally benefited from Charity Water’s work. The following image was taken from their website
and is connected to a story about how one mechanic in India has taken full advantage of Charity
Water’s services (Charity Water, 2015).
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Inspiration is a critical step in engaging not just Millennials but supporters of all ages. Utilizing
stories that appeal to emotion and place individuals at the center of social change can be highly
effective. However, inspiration is only one part of a wider strategy. In today’s attention-fragmented
media, Millennials value trust above all other factors when making decisions. Proving the
organization’s value by providing evidence of impact is a key component to building trust with
Millennials.
Brace for Impact
Cultivating trust is essential to Millennials who tend to support causes rather than institutions.
Millennials aren’t interested in structures and organizations, but rather in the people they help and the
issues they support (MIR, 2013). Therefore, it’s up to organizations to inspire them and show them that
their support can make a tangible difference on the wider issue (2013). In this way, relating content to
the greater cause and proving the organizational value is an effective way to build trust and engage
Millennials.
Measurable Impact
Transparent accounting and organizational accountability are values that all generations can
appreciate. However, it is only recently that technological innovation has made access to this type of
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information an expectation rather than a preference. Millennials want to see where their money is
going and whether it is making a tangible impact. According to the 2013 MIR, Millennials repeatedly
indicated that “they wanted transparency on how the organization was using and maximizing the gift”
and that they were more likely to give to an organization that revealed the tangible benefit of their gift.
(2013). For Millennials, transparency is a key factor in trust with 70% of respondents indicating that
they trust organizations that report how financial support makes a difference (2013). Publishing
financial reports, creating infographics and charts, and providing donors with updates on programs and
services are great ways to disseminate information about the organizational impact and its financial
condition.
Millennials want to feel effective and useful and look for how their individual contribution can
have an impact. Nonprofits must demonstrate how gifts have affected beneficiaries and highlight the
role of the donor in achieving this result. In this way, Millennials are attracted to specificity. They are
more inclined to give or get involved with an organization if they know the money donated goes
toward specific projects. According to the 2013 MIR, donation requests that focus on how the gift will
benefit the recipients will garner higher response (2013). In engaging this generation, it is no longer
enough to ask them to give to "help people in need,” it is a matter of bringing attention to a particular
area such as “improving graduation rates or ensuring kids read at grade level” (Kitson, 2014).
According to the 2011 MIR, 82% on Millennials would give if the organization specifies where the
money will be going. (2011). Organizations can utilize this strategy by equating donations into
different levels or conceptual outcomes so that donors have a concrete understanding of what
specifically they are funding. At Planned Parenthood for example, $100 might translate into three
months of birth control (N. Engebretson, personal communication, May 18, 2015). This appeal
conveys organizational transparency by providing a tangible impact that donors can visualize.
Additionally, N. Engebretson explained that when crafting digital communications for Planned
Parenthood, having a clear call to action and communicating how that action will actually make a
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difference are effective strategies to engage Millennials. This transparency is “the first step in
transcending this clicktivist mentality” (personal communication, May 18, 2015). Millennials want to
see a measurable result; focusing the appeal on the completion of a specific task or goal will help to
demonstrate that impact.
Matching Gifts and Social Fundraising
Technology has allowed Millennials to expect immediate and impulsive interactions with
nonprofit organizations. According to an article in Smart Business Magazine, “Millennials thrive on
instant gratification, which impacts their approach to philanthropy. Millennials want to take action—
they want to see their donations and their volunteer time impact the community immediately” (Kitson,
2014). The MIR substantiates this claim, stating that Millennials prefer to make smaller contributions
before committing to a cause and that their “interactions with nonprofit organizations are likely to be
immediate and impulsive” (A Generation for Causes, 2013). When inspired, “they will act quickly in a
number of ways, from small donations to short volunteer stints, provided that the opportunities are
present and the barriers to entry are low” (MIR, 2013). In this way, nonprofits should ensure that they
have multiple pathways of engagement with low barriers to access in order to cast a wide net in
attracting young people. From showing up to volunteer for a one-time event to leading a volunteer
team, Seattle Works makes it easy for individuals to engage at any level and make their way through
the pipeline at their own pace (J. Frederick, personal communication, May 15, 2015). Therefore,
strategies that capitalize on this generation’s inclination toward impulsivity and small actions will
garner greater results.
The promise of matching gifts is a stronger motivator for Millennials than any other generation.
According to the MIR, the fact that their gift will be matched is among the top three reasons why
Millennials give (2013). Logical reasoning drives Millennials and any opportunity to maximize their
gift will generate support with this group. In addition, social fundraising is another motivator that
relates to Millennial desire for instant gratification and impact. Social fundraising, or crowd funding, is
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the practice of funding a project by raising small amounts of money from a large number of people,
typically online. Donation-based platforms such as Indiegogo, Crowdrise, and Power2Give allow
funders to donate via a collaborative goal based process and provide individuals a great way to engage
in philanthropy. These sites are especially attractive to young people who tend to give smaller gifts,
value seeing the specific impact of their gift, and enjoy being a part of a large social campaign. In this
way, both matching gifts and social fundraising are great strategies because they allow Millennials to
be driven by moments of inspiration while still understanding the value of an organization’s work and
building authentic relationships with the nonprofits they choose to support (MIR, 2012).
Millennials desire an inspiring story and value organizational integrity, yet grabbing the
attention of this broad and highly selective group requires more than a compelling narrative and a
published financial report. Digital communication and Internet interactions dominate the daily lives of
young people and it is in this online arena that nonprofits must compete in order to engage the most
technologically savvy generation.
Technological Exceptionalism
For the past 15 years, Millennials have been leading technology enthusiasts, many coming of
age at a time to see dial-up turn into FaceTime in under a decade. Their comfort level with new
technologies defines them and there is no doubt that they are the most technologically savvy
generation. According to the Pew Research Center, “Three-quarters of Millennials have created a
profile on a social networking site, compared with half of Xers, 30% of Boomers and 6% of Silents
(Pew Research Center, 2010). There are big generation gaps as well, “in using wireless technology,
playing video games and posting self-created videos online” (2010). Given the exceptional
technological aptitude of the Millennial generation, an up to date and well designed website and an
active social media presence are crucial for organizational relevance in this highly digitized
marketplace.
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Website
The Millennial generation seeks the Internet for most of its needs and an organization’s website
is the number one way Millennials learn about nonprofit organizations (MIR, 2011). Since Millennials
use search engines to gather information, “organizations need to be acutely aware of how they’re
showing up in Google searches and how they use Facebook – those platforms are integral to reaching
this group” (Millennial Donors, 2010). The primary purpose of the website is to tell the organizational
story concisely and professionally. The website is a key attraction and Millennials expect an easy to
navigate website with a unique, purposeful, and concise mission statement readily accessible. Most
young people tend to make split-second judgments and to Millennials, “the overall look of the site and
the organization’s web presence speaks volumes to the investment value and character of the
organization” (MIR, 2012). Containing up-to-date information on your website is another important
consideration. The homepage is the first page shown so it is critical that any featured news, events, and
blog posts are relevant.
Visuals
The digital marketing strategy that overwhelmingly grabs the attention of a Millennial is the
use of graphics. According to a study published in the Journal of Strategic Marketing, 571 Millennials
were asked to look at a list of website features and select up to three features that were most likely to
grab their attention. The survey concluded that graphics captured the attention of 73% of the
respondents and approximately half of the respondents said that interactive features and bright colors
seized their attention (Smith, 2011). A simple, professional layout was also significant in capturing the
attention of this demographic (Smith, 2011). Visuals are an important part of content marketing
success and are a critical piece for engaging young people more broadly.
Last year the MIR produced a review that identified which findings have been consistent over
the past four years of survey results. According to that report, “Millennials have grown notably in their
desire for and attraction to imagery and video” (2013). They use media elements to vicariously
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experience the need and see how their small action can help alleviate a need in that moment (2013).
The report advises nonprofits to capitalize on this valuable opportunity by using visuals that focus on
the story as Millennials respond greater when storytelling is incorporated into visual campaigns. This
fact was made clear in 2010 and remained clear through 2013, “when more than 60% of respondents
said they felt most invested in a cause when the nonprofit shared a compelling story about successful
projects or the people it helps” (2013). Vittana, a nonprofit that works to build student loan programs
around the world, connects the stories of individual students with the wider impact on access to
education through compelling visuals. Here is an image from their website (Vittana, 2015)
The digital age is here to stay and organizations must find ways to pull this generation to their
websites and into a relationship. By taking into consideration the preferences of Millennials for
colorful graphics and story-based messaging, investments in photography, video, digital storytelling,
and experiential learning will be worthwhile as the effectiveness of online communications and digital
marketing aimed at this market segment is increased (Smith). Successful nonprofit marketers should
realign their techniques in order to positively engage this online and vocal generation; one of the most
effective and widely used methods to engage young people online is social media.
Social Media
Social media must be considered an important, if not the most important, communication
medium for engaging Millennials in social causes. While the website is the number one way
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Millennials learn about an organization, social media is a close second with 55% of respondents using
online social tools to gather information (MIR, 2012). Social media has become so ubiquitous as a tool
to learn and interact with organizations that it has become an industry standard. When fully utilized,
social media enables organizations to connect personally with new and targeted audiences and build
sustained support in the community.
An effective marketing strategy should leverage the organization’s network of existing
supporters by “identifying those Millennials who already empathize with the cause and facilitate their
ability to influence other members in their networks” (Paulin et al. 2014). E. Murphy’s insight on this
topic is that building a brand online is all about relationship building. When she created Firesteel, a
network of Washington YWCAs committed to ending homelessness, she knew it was important to find
the people who were already active and engaged online. Interacting with these individuals is how
administrators can get leverage and how conversations online can translate into in-person engagement
(personal communication, May 15, 2015). J. Frederick and N. Engebretson echoed the idea of listening
and interacting with the online community both within and outside your organization’s network. J.
Frederick specifically stressed the importance of building social media ambassadors by noticing those
who are engaged and personally acknowledging their support (personal communication, May, 2015).
Below is an example of Seattle Works responding to a supporter by personally thanking him for his
comment (Seattle Works, 2015).
In addition, N. Engebretson stressed the idea of collaboration and connection by listening to “what
people are saying about your organization or the issues you care about and be a part of that
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conversation” (personal communication, May 18, 2015). For example, pay attention when something
related to your mission is trending and respond by sharing relevant posts or replying directly. Below is
a Twitter post from Planned Parenthood retweeting a comic connected to the birth control and Hobby
Lobby debate (Planned Parenthood, 2015).
The nature of social media is changing at a fast pace and “it would be to the advantage of cause
marketers to employ Millennials in developing pertinent strategies and practices to keep pace” (Paulin
et al., 2014). Taking advantage of open innovation processes and marketing “with” rather than “to”
Millennials can facilitate the development of new approaches for initiating and supporting social
causes (2014).
Embracing social media is no longer an option for organizations. Constituents of all ages
engage in this online platform and without a committed strategy for using these social tools
organizations will fall behind. However, while technology and social media are integral parts of their
lives, most philanthropists are still driven by personal relationships and human connections. This is
true for even the tech savvy Millennials which have communicated their preference for the personal
touch and face-to-face connection. According the MIR, Millennials are much more motivated to give
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in response to a personal appeal than compared to a letter, email, or online campaign (2013). Despite
all the technological innovation and the emphasis on digital culture, relationship building in the
modern age is still reliant on old-fashioned personal connection. This point is even more important
with Millennials, a generation that both commands and is commanded by peer influence.
Peer Influence
One of the most important reasons it is crucial for nonprofits to engage the Millennial
generation is because they are natural advocates. Millennials are self-expressive and if they are
inspired by an organization or an idea, they will share it. Peer influence is a huge motivator for
Millennials and social media further compounds the power of this vocal and highly social generation.
“Millennials are more influenced by their peers than any of the earlier generations. They can and want to use their voice and other platforms like blogs and social media to create awareness about an organization's cause. Most Millennials don't give at the same level as their more established counterparts, but their ability to advocate is priceless. Nonprofit organizations are starting to focus their research and strategies around millennials because they realize this generation is driving true community impact” (Kitson, 2014).
Over the last four years, the MIR has consistently documented not only the tendency of Millennials to
be advocates but their positive response to peer influence. Here is a collection of important statistics
for consideration:
• Nearly 75% of respondents said they would tell Facebook friends about great nonprofit events
• 68% said they would tell friends about impressive statistics about a cause or issue
• 65% said they would promote a nonprofit’s great story or accomplishment
• 61% said they would use Facebook to alert friends to volunteering opportunities and needs
• 81% prefer to learn about volunteering opportunities from their friends
• A friend or peer endorsement compelled 52% to give, while a nudge from a family member
prompted 42% to give
• More than three-quarters of Millennials (77%) said they would trust organizations endorsed by
friends or family members
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Millennials that are connected and have established relationships with nonprofits are willing to spread
the word to their community. This fact provides organizations with a cheap source of community-
based advocacy and an effective way to track the effectiveness of their messaging and reach.
Organizations will know their message is resonating when Millennials are compelled to share their
content. It’s an instant feedback loop that tells organizations what an audience finds interesting and
worth disseminating (MIR, 2013). In this way, sharing becomes “a form of indirect advocacy, in that it
furthers education about the cause and draws other people to the issue. The more that nonprofits can
inspire sharing, the better chance they have of capturing Millennials’ passion about their cause”
(2013). Seattle Works’ Annual Campaign is always peer-to-peer and this year they utilized Crowdrise,
a social fundraising platform, to encourage support. Supporters made their own pages and posted
pictures and stories. J. Frederick gave them tools such as sample tweets and sample email asks but also
“encouraged them to make giving to Seattle Works extremely personal and share that excitement with
their networks.” Seattle Works empowered their supporters to advocate on their behalf simply acting
as the moderators of the conversation. The campaign was widely successful raising $20,000 in two
weeks (personal communication, May 15, 2015).
While peer-to-peer sharing has a significant impact, it’s important to remember that social
media and other digital marketing channels are just tools to engage. The real draw for donors “is the
compelling message that inspires them toward impulsive sharing and contributing” (MIR, 2013). In
this way, the message needs to resonate with Millennials, both on personal and emotional levels as
well as by demonstrating value. Even peer influence, while effective at providing an initial
introduction, may not be enough to sustain engagement. It’s about communicating inspiration and
impact and although a flashy marketing campaign can be an effective strategy, it still is no substitute
for cultivating relationships and building trust. Millennials value authenticity, variety, and actionable
information and once they are connected, they want to understand the best ways to give and get
involved.
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Time to Get Involved
The axiom that young people have time but no money and adults have money but no time is
true today as much as it was in the past. Young people tend to give less money than their older
counterparts, a fact that discourages many organizations from investing financial resources in this
group. However, as previously stated, Millennials can be invaluable as advocates and they are highly
interested in giving a different, but still important resource — their time.
Movers and Shakers
As with young people of previous generations, young people today are very interested in
opportunities to get involved. According to the MIR, 63% of surveyed Millennials reported they
volunteered for nonprofits in 2011 (2012). However, Millennials’ motivations for getting involved
differ in that they place a greater emphasis on professional development. Millennials are still an
“Empathetic” and “We” generation overall, however they respond to incentives that appeal to their
self-interest specifically regarding opportunities to develop new skills and network. Millennials want
to get involved to make a difference and are clearly oriented toward community action and social
change, but are also motivated by opportunities to build their own careers.
Millennials have just recently entered a highly aggressive marketplace. Going from a
competitive college admissions process to a job market over-saturated with college degrees,
Millennials are looking for any way to get ahead and stand out. According to the MIR, the top three
motivations for Millennial involvement are passion for the cause, opportunities to meet people, and to
gain expertise (2013). In a study conducted by the US Chamber of Commerce Foundation, they found
Millennial volunteering is motivated more by ambition than altruism, with 51% of Millennials
indicating that volunteerism needs to benefit them professionally (2013). Furthermore, 72% of
Millennials are interested in participating in a nonprofit young professional group (MIR, 2013). In
addition to gaining experience, Millennials prefer using their individual skills to help a cause and want
to lend their knowledge and expertise in addition to time (MIR, 2012).
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Millennials are looking for leadership opportunities and seek out positions with increased
responsibility. According to The Hartford’s 2013 Millennial Leadership Survey, Millennials have the
desire and the confidence to lead with 78% identifying as a leader and 73% saying they aspire to be
leaders (2014). E. Murphy spoke about the success of the YWCA’s Gen-Rising program, a young
professional networking group, and stated “having Millennials participate in things like doing a
fundraiser for you is really powerful because there’s a level of responsibility that Millennials crave. It’s
really fulfilling” (personal communication, May 15, 2015). Opportunities to gain skills in advocacy,
community organizing, fundraising, or board stewardship are appealing to young professionals
interested in expanding their capacity and their network. Millennials want to connect, learn, and have
fun and all of the nonprofits I spoke with have found success in implementing programs that enable
young people to meet others with similar interests and explore board internships, serve on advisory
committees, and participate in young professional networks and social events. The MIR states it best—
“the nonprofit field has reached the point where it must move beyond simply inviting Millennials in to
incorporating them into significant, cause-based, outcomes-driven work—in short, the real work of
engagement” (2013). This sentiment was confirmed speaking to J. Frederick about why their mission
and programming are so popular with young people. What is attractive about Seattle Works’ approach
to engagement is that “it’s not networking with a glass of wine standing there awkwardly in the room,
this is rolling up your sleeves together” and bonding over a shared value of giving back. Volunteering
for Millennials is about civic development but it’s also a chance “to meet some really awesome people
who care just as much as they do” (personal communication, May 15, 2015). For young people, getting
involved with an organization and volunteering their time and skills has become a new way to socially
connect and network.
Challenges and Recommendations
Throughout this paper, I have outlined some strategies and best practices to engage the
Millennial generation in philanthropy. However, in the real world, what should work best does not
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always align with challenges that arise in real time. The chart below outlines some of the biggest
challenges facing nonprofits and some recommendations to confront these difficulties.
Figure 1.2
Lack of Resources
Lack of resources is one of the biggest challenges facing the nonprofit sector, especially when
considering the engagement of Millennials, a group in which organizational investment is likely not
going to pay off immediately. For example, when considering the importance of having an active
social media presence, many organizations are constrained by their inability to invest fully. Even the
MIR acknowledges, “developing rich social media experiences requires organizations to devote
internal resources—human and financial—to social media engagement” (2013). Social media
marketing is often an afterthought once major departments like development, administration, and
finance are funded and many nonprofits simply do not have the capacity to pay for and cultivate staff
members who are knowledgeable and dedicated to digital communications. Additionally website
design is very expensive and many nonprofits struggle with footing the bill.
• Leverage the network that is already active and engaged with your organization
Lack of Resources
Nature of mission not conducive to impact measurement and project-specific funding
Lack of demographic data and empirical research regarding effectiveness of strategies to engage Millennials in philanthropy
• Invest in staff that are knowledgeable about social media and website management
• Make website design and digital communication a priority
• Determine mission based metrics and benchmarks for measuring success unique to your organization
• Collect demographic data on donors, volunteers, and online communities when appropriate
• More empirical research on effective strategies needs to be done
Challenges Recommendations
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Despite the high price tag that comes with financing website design, social media, and other
digital platforms, the value of a well designed website and digital marketing competencies is well
worth the expense. Make this a priority for your organization. Think of it as a capacity building tool
that will help your nonprofit more effectively fulfill its mission. Strategic social media management
and digital communications should be a full time position, however, if adding an additional staff
member solely dedicated to online messaging is not possible, hire individuals with digital
communication experience and a proficiency in different social media platforms when filling existing
roles. In responding to inquiries about the cost of using Facebook promotion to target and disseminate
messaging, N. Engebretson sympathized with the issue but argued “I get that it is an expense, but it is
an expense for Planned Parenthood to have Sarah [Digital Content Specialist] spend a half hour
creating a graphic… She created this great graphic and we want more than 17 people to see it… Her
time is worth it” (personal communication, May 18, 2015). In other words, utilizing social platforms
strategically and fully is often less costly to organizations than only casually engaging or being left out
of the conversation entirely. For those interested in a website redesign, look into getting your website
donated, as some companies offer pro bono services.
The challenge of lack of resources extends to other areas of engagement such as programming
and events. E. Murphy highlighted these challenges when discussing the YWCA’s Gen-Rising
program, a networking group for YWCA supporters under 40. While the program was widely
successful and popular among young people, it did not have a dedicated staff person and after less than
four years the YWCA had to put the program on hold on due to high staff turnover and continued
resource shortages. She spoke about how many direct service organizations like the YWCA struggle
with balancing the immediate needs of service recipients with long-term goals. Funding community
engagement programs and social networking events often do not yield a high return on investment in
the short term due to the fact that many of those engaged are young and “money starved” (personal
communication, May 15, 2015). Constant tension exists between balancing the short-term fundraising
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and development needs of an organization with the desire to invest in relationship-building and
engagement activities that pay off in the long term. This impedes many organizations from fully
developing opportunities for youth involvement. N. Engebretson acknowledged this dilemma but
maintained that these types of events are invaluable in that “its more than just dollars raised, it’s about
the relationships. It’s a connection to the brand; it’s a connection to the organization, the mission. And
you cannot put a dollar amount on it” (personal communication, May 18, 2015). J. Frederick and E.
Murphy suggested that for organizations short on funds, it is important to leverage the network that is
already engaged. Work with volunteer leaders and activists to cultivate a pipeline for future
engagement. As with any demographic, get to know the community you are trying to reach by
empowering them to get involved and incorporating them in leadership. While this will remain an
ongoing challenge for many nonprofits, it is crucial that the sector acknowledges the importance of
these programs and invests in their long-term future.
Measurable Impact
The growing emphasis on impact and accountability has increased the pressure on social sector
organizations to pay attention to performance management. However, social sector work is often so
unique and context-specific it cannot be readily measured. (Ebrahim & Rangan, 2010, pp. 30).
“Establishing measurable causal relationships between a project’s objectives, outputs, and outcomes
and identifying appropriate indicators for measuring results” does not make sense for all organizations
(2010, pp. 18). For example, E. Murphy mentioned that advocacy work is difficult and often
impossible to quantify due to the limited ability to connect long-term results with organizational
interventions (personal communication, May 15, 2015). In addition to the causal complexities of
advocacy work, the nature of an organization’s mission may not be compatible with project specific
funding. J. Frederick reasoned that since Seattle Works is such a small staff, their annual campaigns
are designed to fund general operating support and are not conducive to project specific appeals or
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restricted funds (personal communication, May 15, 2015). Not all missions lend themselves well to
clearly quantifiable outcomes or impacts.
A working paper from the Harvard Business School suggests that nonprofits should move
beyond the reductionism of clear and quantifiable measures of impact and instead focus on the unique
mission-based types of results they wish to achieve (Ebrahim and Rangan, 2010). There is no objective
standard for measurement like that which exists in the private sector. Social organizations must
determine their own mission-appropriate measurements for rating and benchmarking success utilizing
an integrated set of assessment methods. If managers clarify what types of results they seek to achieve,
they can better report on tangible impact to the broader community and better communicate
accountability. Take for example a small anti-poverty nonprofit that wants to communicate their
organizational value by proving how their services are having a direct impact. Statistics regarding
homelessness reduction in Seattle are due to a variety of factors and cannot be linked directly to the
actions of the nonprofit. Instead, the nonprofit should look to intermediate measures that focuses on the
specific services provided and align these outputs with things that can be measured based on desired
results. If the goal is to reduce poverty by providing aid to the homeless, look to the number of
homeless that found housing, employment, or other resources as a result of the organization’s
intervention. By measuring progress against specific mission-based metrics, all organizations can
prove that their services are making a difference and effectively market their impact.
Lack of Research and Demographic Data
A third major challenge facing the nonprofit sector in their efforts to implement the strategies
outlined above is the lack of empirical research and demographic data. Unlike in the private sector,
where literature regarding the effectiveness of strategies regarding branding, advertising, and digital
marketing in engaging Millennials has been studied extensively, there is very little research that relates
to the effectiveness of these strategies for the nonprofit sector. Further research on strategies that are
successful at engaging Millennials is needed to better examine how nonprofit leaders can align their
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strategic goals with the needs and preferences of Millennials. Additionally, most nonprofits do not
have systems in place for tracking the age demographic of their donors and volunteers. Without data
regarding the age of donors, volunteers, and supporters, it is difficult to measure the effectiveness of
any marketing, programming, or development efforts designed to engage Millennials. While it is
understandable that this information is sensitive and organizations should respect privacy,
organizations should be more intentional about collecting this data when possible.
Conclusion
While the core of what attracts and engages donors has remained the same, Millennials today
are changing the way nonprofits do business. Technological innovation has altered the playing field
and Millennials are at the forefront of the tide. More than ever, nonprofits are being confronted with
the need to learn how to reach this new audience and capture their passions, drive, and age-specific
characteristics in order to draw them into a cause. In this noisy and competitive marketplace,
organizations must work to make their messages as compelling as possible and create metrics for
performance measurement that support organizational mission. Nonprofits are also tasked with
investing time and resources into online competencies and community engagement programming.
While lack of resources proves to be a major challenge, by allocating more staff time and financial
resources, the sector should be able to craft comprehensive, sophisticated, and sustainable structures
that extend those initial contacts into continued involvement. Millennials represent technological
innovation, change, and the future of philanthropy. Once organizations begin to adapt to the changing
needs and preferences of young people, they will be able to not only secure the patronage of the
Millennial but also set themselves up for success in engaging future generations to come.
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Figure 1.3
How Millennials are Different and Strategies to Engage
Millennials... Strategies to Engage
Place greater emphasis on transparency and accountability
Are the most tech-savvy generation
Are more motivated by peers than any other generation
Be specific (ex. $100 = 3 mo. birth control)Show tangible impact or outcome
Place greater importance on professional development and leadership opportunities
Publish financial reports
Make smaller gifts and act impulsively Incorporate multiple pathways of engagement
with low barriers to access
Use matching gifts and social fundraising platforms
Use colorful graphics and videos to tell story and communicate mission
Have an up-to-date and easy to navigate website
Empower Millennials to advocate by providing tools and resources
Use social media to leverage network and encourage sharing
Cultivate feedback loops
Offer Millennials leadership positions
Board internships, young professional networks, social events, and volunteer positions
Volunteer work should be caused-based and outcomes-driven
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