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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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