Gen X Giving: Effective Fundraising Strategies for Generation X Association of Fundraising Professionals Northeast Ohio Chapter April 13, 2018 Tim Ardillo, CFRE Consultant 317.215.2403 ardillo@jgacounsel.com

Meet Your Presenter

Importance of Understanding Generational Differences Five Generations of Donors and Alumni First time ever Increased life expectancy, better healthcare, delayed retirement

Importance of Understanding Generational Differences Variety of Influences on Generations Economic, social, political, and environmental dynamics Collective experiences Different worldviews Inform behavior toward life, money, giving 2000’s

Don’t Over-Generalize Important to understand the trends and research findings regarding generational tendencies Avoid the tendency to make generalizations about individual donors and prospects Still important to get to know each volunteer and donor This Photo by Unknown Author is licensed under CC BY-SA

Jan Brady of the Generations

Lady Edith of the Generations

Defining the Generations Millennials (1981–1995) Boomers (1946–1964) Silent &Great (1901–1945) Updated 6/21/16 – population size 75.4 per Pew Generation X (1965 – 1980)

What’s Next? Gen Z Gen Z (1995 or later) Born 1995 or later 23 million and growing Oldest just entering the workforce

Get to Know Gen X Generation X Born 1965 to 1980 Fall between mid-30s to mid-50s 65 million – 26.6% of US population AKA: Latchkey Kids Influenced by MTV, Aids crisis, Challenger disaster, Desert Storm, stock market crashes Absorbed changes – analog to digital, tripled divorce rates, dual-income parents, less job security Middle child generation sandwiched between Boomers and Millennials Generation X (1965 – 1980)

Get to Know Gen X Generation X Somewhat Diverse: Somewhat Religious: 61% white (non-Hispanic) Somewhat Religious: only 28% are religiously unaffiliated Well Educated: 69% had some college experience Patriotic: 64% say they would describe themselves as “a very patriotic person” Insecure about Retirement: 44% are not confident about having enough money for retirement Generation X (1965 – 1980) Pew Research Center – various reports and data tables

Get to Know Gen X Generation X Impressive spending power: Hit hard by Great Recession: Saw 58% drop in net worth 2005–2010 (more than any other generation) Household (HH) income bounced back post-Great Recession: Gen Xers had highest median HH income in 2013 among all generations at $73,200 Impressive spending power: Account for 31% of consumer spending, more than any other generation 82% own homes Gen Xers slowly coming out from under mortgages and college tuition payments Generation X (1965 – 1980) Sources: Bullet 1 -US Census Bureau, Survey of Income and Program participation 2004 and 2008 Panels Bullet 2 - Pew Research Center tabulations of the 2014 March Current Population Survey Bullet 3 - “5 Reasons Marketers Have Largely Overlooked Generation X”, Ad Week, April 4, 2016

Get to Know Gen X Generation X Tendencies Changing rules to suit the new reality Change jobs frequently Dislike rigid hierarchy Entrepreneurial Strong survival instinct “Work to live” (separate work and personal) As youth called “Slackers” Now over-scheduled, stretched thin Raising children, caring for parents, pursuing career advancement Generation X (1965 – 1980)

Generational Giving Patterns

Generational Giving Patterns This is the percent of each generation that donates to charity per Blackbaud’s Next Generation of American Giving study, 2013 Source: Blackbaud, The Next Generation of American Giving

Gen X Giving Patterns Generation X 20% of Total US Giving 53% Giving Participation $1,033.28 Average Total Annual Giving $196 Average Gift 2.95 Average Charities Supported 19% of gifts of $100,000 plus Philanthropic drivers: promote independence and self- preservation Generation X (1965–1980)

Generational Giving Patterns Millennials Gen X Boomers Silent/ Greats Avg. Number Nonprofits Supported 2.93 2.95 3.14 3.21 Average Total Annual Donations $644.92 $1,033.28 $1,248.80 $1,435.31 Source: Donor Engagement Study, Abila, 2015

Generational Giving Patterns Number of Gifts Gifts of $100,000 or more Gifts of $99,999 to $25,000 Gifts of $24,999 to $10,000 Gifts of up to $9,999 Greatest 4.2% 14.2% 10.8% 6.6% Silent 26.3% 34.6% 30.2% 27.6% Baby Boomers 39.9% 34.7% 38.3% 41.2% Gen X 19.1% 9.2% 13.7% 16.9% Millennials 10.5% 7.2% 7.1% 7.6% Total Gifts 100% Percent of Revenue Gifts of $100,000 or more Gifts of $99,999 to $25,000 Gifts of $24,999 to $10,000 Gifts of up to $9,999 Total Revenue Greatest 32.2% 8.0% 4.1% 55.7% 100% Silent 16.9% 4.3% 3.5% 75.3% Baby Boomers 11.8% 3.7% 3.6% 80.8% Gen X 7.3% 3.4% 85.6% Millennials 13.1% 3.2% 80.4% Chronicle of Philanthropy, Generation X Comes of Age as Donor Group with Big Potential, September 06, 2016 Source cited is Blackbaud “From analysis of $4 billion in 2015 fundraising from 17 million households benefitting about 200 charities of all sizes” Source: Blackbaud, 2015

Generational Giving Preferences Millennials Gen X Boomers Silent/Great Local social service 19% 29% 36% 37% Place of worship 22% 38% 46% Health charities 20% 24% 23% Children’s charities 28% Education 17% 16% 14% Emergency relief 11% 18% Animal rescue/protection 21% Troops/veterans 6% 10% 15% Environmental, conservation 4% 9% First responders 8% Arts/art-related 7% Advocacy 5% Election campaigns 2% Human rights/ international dev. 12% Victims of crime or abuse 3% Source: Blackbaud, The Next Generation of American Giving

Engagement Preferences Respondents answering “very” or “somewhat” important. Source: Blackbaud, The Next Generation of American Giving

Application of Generational Trends Build and segment your donor database Birthdays matter – they can give you insights into the generational behaviors of your constituents and donors Across the generations, multichannel marketing and fundraising approaches are needed, but the approach varies based on the generation Seek input from your donors and track that information to develop generational based communication and fundraising approaches

Gen X Giving Patterns Blend method of appeals: Gen Xers have a growing preference for making online donations but still respond to mail appeals (albeit, much less so than older generations). Nearly 40% made a donation through a nonprofit website in last 2 years according to Blackbaud’s 2013 report on The Next Generation of American Giving. Crowd-funding, retail philanthropy (checkout donations/percent of proceeds), pledges, and tribute gifts are popular giving methods. Be mobile ready, according to the Pew Research Center, as of 2016, 88% of adults 30- 49 owned a smartphone. The Next Generation of American Giving, Blackbaud, 2013 This 2013 study by Blackbaud and Edge Research is based on an online survey of 1,014 U.S. donors from a national survey panel controlled to be U.S. Census representative. Pew Research Center, Mobile Fact Sheet, January 2017 Survey conducted Sept. 29-Nov. 6, 2016.

Gen X Giving Patterns Solicit more than once per year: Blackbaud also found that 50% of Gen Xers indicated a willingness to give more than once per year — which is more than any other generation — so they are more likely to be receptive to multiple solicitations. The Next Generation of American Giving, Blackbaud, 2013 This 2013 study by Blackbaud and Edge Research is based on an online survey of 1,014 U.S. donors from a national survey panel controlled to be U.S. Census representative. Pew Research Center, Mobile Fact Sheet, January 2017 Survey conducted Sept. 29-Nov. 6, 2016.

Application of Generational Trends Demonstrate impact: 50% of Gen Xers indicated seeing demonstrated impact of their gift would encourage them to give according to Blackbaud May restrict their gift to those areas where they see a direct impact; less likely to give unrestricted gifts Tailor marketing messages and provide clear examples of impact of gifts for Gen X donors Gen X donors are savvy about how their money is spent and are looking for innovations and creative solutions; want to be involved with time and dollars The Next Generation of American Giving, Blackbaud, 2013 This 2013 study by Blackbaud and Edge Research is based on an online survey of 1,014 U.S. donors from a national survey panel controlled to be U.S. Census representative.

Application of Generational Trends Likely to give to your cause, along with others More likely to be committed to a “Cause” rather than loyal to an organization Network with other organizations they trust for a third-party endorsement, i.e. fraternities/sororities, community groups, etc. Use other donors and supporters to help spread your message to their peers within their own networks For Universities, Gen X alumni may have closer ties to affinity groups (fraternities, clubs) than to the institution

Application of Generational Trends Engage in multiple ways: The top two ways Gen Xers feel they can make a difference are by donating money and volunteering. Donating goods and spreading the word are other important methods of engagement. Fundraising and advocating are viewed as less important, each selected by just 4% of respondents in Blackbaud’s 2013 study. The Next Generation of American Giving, Blackbaud, 2013 This 2013 study by Blackbaud and Edge Research is based on an online survey of 1,014 U.S. donors from a national survey panel controlled to be U.S. Census representative.

Application of Generational Trends Engage in multiple ways: Don’t overlook the importance of social media for Gen X; it is an important tool for stewardship as well as peer networking and engagement. 47% follow a charity on social media and 38% have shared about a charity on social media The Next Generation of American Giving, Blackbaud, 2013 This 2013 study by Blackbaud and Edge Research is based on an online survey of 1,014 U.S. donors from a national survey panel controlled to be U.S. Census representative. This Photo by Unknown Author is licensed under CC BY-NC

Engaging the Generations Gen Xers volunteer more than any other generation 28.9% of Gen Xers found time to volunteer in 2015 according to the Corporation for National and Community Service Highly engaged volunteer group - don’t just assign them to a volunteer task, ask how they’d like to help Want to learn leadership skills and make career connections Volunteer most for educational causes – 39% Corporation for National and Community Service, 2015 Find out how Volunteering and Civic Engagement are measured The data for this website were collected through two supplements to the Current Population Survey (CPS); the Volunteer Supplement and the Civic Supplement. The CPS is a monthly survey of about 60,000 households, (approximately 100,000 adults) conducted by the U.S. Census Bureau for the Bureau of Labor Statistics. The selected supplements collect data on the volunteering, voting, and civic activities of adults age 16 and older for volunteering and 18 and older for the civic supplement. Volunteers are considered individuals who performed unpaid volunteer activities through or for an organization at any point during the 12-month period, from September 1 of the prior year through the survey week in September of the survey year. View the Technical Note for more information on how this information was collected.

Application of Generational Trends Gen Xers are Planned Giving prospects: First wills are usually created by people in their 40’s and 50’s Older generations will be transferring an estimated $40 trillion to Gen X and Millennials Prepare for the impact of a major wealth transfer between the generations Educate Gen X about planned giving options Promote planned giving at events Showcase peers who have made a planned gift

Questions and Answers

Resources The Next Generation of American Giving. This 2013 study by Blackbaud and Edge Research is based on an online survey of 1,014 U.S. donors from a national survey panel controlled to be U.S. Census representative. Generation X: America’s neglected middle child. Pew Research Center, June 5, 2014. Generation X Comes of Age as a Donor Group with Big Potential. Chronicle of Philanthropy, September 6, 2016. Donor Engagement Study. Study by Abila in 2015 that surveyed 1,263 donors across age groups and 206 nonprofit professionals. Volunteering and Civic Life in America. Study by the Corporation for National and Community Service in 2015 taken from the Current Population Survey of approximately 100,000 adults.

Contact Information Tim Ardillo, CFRE Consultant Johnson, Grossnickle and Associates 317.215.2403 ardillo@jgacounsel.com @tardillo