New study finds differences between generations of givers

New study finds differences between generations of givers

News

A new study of the charitable giving behaviours and attitudes of US donors belonging to different generations, reveals differences in how they engage with charities and make donations.

Levels of giving amongst the four generational groups are found to descend with age. 79% of ‘Matures’ (born before 1946) and 67% of Baby Boomers (born between 1946-64) give, compared to 58% of Generation Y (born between 1981-1991) and 56% of Generation X (born between 1865-1980). More marked is the difference between the generations in the number of donors giving $1,000 or more each year: 19% of the oldest generation give at that level, compared to just 5% of the youngest generation. This differential could be a function of disposal income and donors may give more as they get older, yet inter-generational differences could be more substantive as the different age groups were found to engage differently with their chosen causes. For example, older donors tend to engage with a charity as a result of receiving direct mail, whilst younger generations are more likely to start supporting a cause after hearing about it in the media, from peers or through word of mouth.

Cheques are the most common method for making a donation amongst ‘Matures’ whilst online giving exceeds giving by mail amongst Generation Y. Giving by mobile phone, texting and through online social media are all innovations that are more popular amongst younger donors, therefore multichannel appeal strategies are necessary to reach younger donors. “The younger the donor, the greater the number of ways they give”, the report states.

However, some characteristics cut across the generational divide, as donors of all ages said they preferred to be asked for donations by a friend rather than by a charity. The report’s authors suggest that a preference for the advice of trusted friends and colleagues is understandable “in a world in which we are all drowning in information”.

The report argues that the vast majority of fundraising techniques in use today are aimed at donors born before 1945, even though this pool of potential supporters is the smallest (estimated US population 39 million) and shrinking year on year. Charities are encouraged to develop new strategies to engage with younger generations of donors: the 51 million members of ‘Generation Y’, the 62 million members of ‘Generation X’ and the largest group, the 78 million Baby Boomers, and to do so without alienating their current donor base, the report states.

The online survey of 1,526 American donors plus a small number of focus groups, was conducted in December 2009 and January 2010. The report was commissioned by Convio and carried out by Edge Research, with the support of SeaChange Strategies.

The report is available online here.