In a previous blog article about generational giving , we said the following about Generation Z, born 1997-2012:
“Gen Z is often called the Activist Generation. Born into a digital world, Gen Z is aware of and responds to crises around the world. As students, they lived through the pandemic and practiced active shooter drills. Gen Z values inclusion, diversity, sustainability, and flexibility. They weave technology into all aspects of life, whether creating TikTok videos or using AI and automation to work more efficiently. Gen Z gravitates towards smaller, grassroots organizations, often donating their time and advocating through social media.”
In a nutshell, they want to make a difference with small nonprofits. They want to be actively involved with organizations that share their values and make contributions through giving and volunteering.
The challenge for young people is that they haven’t accumulated the wealth of older generations. In fact, the high cost of living makes it difficult to simply break even. Inflation has made everything more expensive, rent and mortgage rates are high, and recent college graduates are often saddled with five or six figures in debt.
Here’s the good news. Recurring donations enable young donors to support your mission in a way that aligns with their priorities and preferences in life!
Although Baby Boomers and the Silent Generation represent 69 percent of charitable giving in the U.S., small nonprofits have a tremendous opportunity to bring in the activists of Gen Z to sustain the long-term growth of their organizations.
Here are five reasons recurring donations should be used to attract young donors.
1) Financial Flexibility for Donors
A 20-something might be apprehensive about a donation of $50 or even $25. But they could very well view $5 or $3 per month as manageable. Make one less trip to Starbucks and that donation is covered!
Recurring donations provide young people with financial flexibility that makes giving easier to absorb. And simple math tells us the total amount given each year can be higher than a one-time donation!
2) Subscription Lifestyle
Most bills are automatically paid online every month. Mortgages, rent, utilities, mobile, internet, streaming services, apps, credit cards, and more. It’s easy and convenient. This is how young people prefer to pay the bills.
Nonprofits can replicate this model with recurring donations. Donating to your organization becomes an automatic payment that’s never missed!
3) Donor Engagement
To coincide with the recurring donation, send each donor a “thank you newsletter” and share stories, photos, and videos that illustrate how their gifts are being used. Ongoing engagement opportunities will help you grow casual, passive donors into passionate advocates and ambassadors for your nonprofit!
4) Difference Makers
That $5 per month donation may not seem like much on the surface, but a young donor with limited funds feels great about a $5 gift! It makes them feel like they’re doing something. They’re making a difference. They’re having an impact. This helps you build a closer bond with a new generation of donors!
5) Build a Foundation for a Lifetime of Giving
Recurring donations make charitable giving possible for young people with minimal effort and a seemingly small financial commitment. However, the long-term impact on your nonprofit can be significant.
Would you rather have one donor giving $500 per year, or 10 donors giving $5 per month? Look beyond the amount of a single gift to see the lifetime value of each donor relationship!
Recurring donations enable people to establish a giving mindset at a young age. Supporting your mission becomes a habit. If you engage regularly and cultivate the relationship, that habit could last a lifetime!
Although charitable giving is up in terms of overall dollars, the number of donors is down. That’s not sustainable, especially for small nonprofits. Eleo donor management software makes it easy to set up recurring donations so you can expand your donor base and appeal to young donors! To schedule a demo, contact Eleo today.
