Millennials and Gen Z are transforming the future of philanthropy

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Key Takeaways

Millennials and Gen-Z are redefining philanthropy by prioritizing social justice, community impact, and personal engagement over traditional giving methods. To resonate with these younger donors, nonprofits need to make their strategies match these values.
To Millennials giving, digital platforms and social media aren’t just tools. They give nonprofits the opportunity to leverage technology, produce interactive content, and streamline the donation experience.
Measurable impact and transparency will be important for earning trust with Millennial donors. Enter detailed impact reports and engaging success stories, which organizations should be frequently sharing to build deeply rooted loyalty and confidence.
Millennials are powering new funding models such as crowdfunding, subscription-based giving, and impact investing. Nonprofits need to go beyond these ideas to earn millennials’ long-lasting support.
Socio-economic and cultural factors impact Millennial attitudes and behaviors toward giving. Nonprofits need to take donor backgrounds, income backgrounds, and global perspectives into account when it comes to outreach strategies.
The approaching $59 trillion wealth transfer presents unprecedented opportunities to engage Millennials in philanthropy. Nonprofits, funders, and financial advisors have a critical role to play helping these next-gen donors make meaningful contributions to their communities.

Next-gen giving is all about the new approaches that millennials are using to redefine philanthropy with an emphasis on impact and accessibility. This age group differs from conventional methods by focusing on issues that align with what’s important to them. They use technology and social media to bring awareness and support.

This generation is leaning into new models of giving. They are adopting crowdfunding platforms, peer-to-peer donations, and subscription-based giving to create more inclusive and transparent charitable contributions. They want to see measurable outcomes. They want to know that their donation is actually making a difference.

This change is indicative of a complex, more sustained form of engagement—from hands-on volunteering to advocacy that pushes for systemic answers to inequity. Here on this blog, we’ll explore some of the motivations that are inspiring and informing millennial philanthropy. We’ll explore the tools they’re using and how their new model is reshaping the landscape of charitable giving.

Millennial Philanthropy: A New Era

They are moving away from just the donation dollar to being more engaged, to being more impactful. Instead of just calling themselves funders, they call themselves activists and holistic social change agents. From fluency to historic inequities, this shift indicates a burning desire for lasting change. More than two-thirds of younger generations consider the long-term impact when they give, and that’s a dramatic shift.

During the Covid-19 pandemic, Millennials proved their commitment by making substantial financial contributions while simultaneously increasing their involvement in volunteering and mentoring. This vibrant engagement is not limited to providing funds but focuses on more direct action to tackle urgent social problems.

1. Understand Millennial Values

Boldly guided by a fierce social justice ethos, community impact, and authentic engagement, Millennials are on a mission. These experiences more often than not determine their philanthropic focus, helping shape their giving identities.

In contrast to their older counterparts, Millennials value action-oriented engagement with causes, opting for volunteering and advocacy over engagement that is purely monetary. For instance, they are more likely to fund efforts to meet basic needs or religious education over general education funding.

This is indicative of their greater, more complete ethos of philanthropy—one that fuses funding with the act of doing.

2. Analyze Generational Differences in Giving

Unlike Baby Boomers, Millennials and Gen Z are greatly impacted by technology in their giving preferences. Crowdfunding platforms, social media campaigns, and other digital tools have lowered the barriers to entry for charitable engagement.

Economic realities play a large part in younger donors’ actions as well, driving them to fund only causes that deeply speak to their lives. These generations prioritize collaboration and transparency, setting them apart from older donors’ traditionalistic approaches.

How Millennials Are Reshaping Philanthropy

With their unique approach to giving, emphasizing action, transparency, and personal connection, Millennials are truly redefining philanthropy in their wake. Millennials value engagement that extends past financial support. As a result, they are actively volunteering, fundraising, and mentoring, and they see themselves as agents of social change instead of passive donors.

This dynamic engagement is in response to their urge to create measurable outcomes and lasting change.

Embrace Digital Giving Platforms

Millennials have adopted these digital tools to give, helping advance online giving as the bedrock form of philanthropy we know today. With mobile apps and websites, it has never been easier to give on one’s own time and terms.

Platforms such as GoFundMe and GiveDirectly have become popular—especially among younger donors—because they’re accessible and easy to use. Nonprofits that weave in digital alternatives will want to make sure they’re living up to the standards of this tech-savvy generation.

Prioritize Transparency and Accountability

In this last example, transparency goes a long way in building Millennials’ trust. They want to understand how money is being spent and they want to see transparent reports on impact.

Nonprofits like Charity: Water excel by sharing detailed financial reports and impact stories, fostering loyalty and sustained support. Open communication combined with accountability builds donor confidence.

Focus on Social and Environmental Impact

Causes tied to sustainability, social justice, and global challenges resonate deeply with Millennials. They only fund initiatives that have positive climate impacts or promote equity, for example.

This has become a popular space for millennials, with impact investing – where financial returns are aligned to social or environmental missions – mixing purpose with profit.

Value Community Engagement

Millennials are drawn to collaborative, community-focused initiatives. Providing local volunteering opportunities and organizing collaborative in-person and virtual events fosters their sense of connection and commitment to causes.

Organizations that cultivate this kind of engagement develop deep, lasting connections with their closest supporters.

Digital Platforms and Millennial Giving

Digital platforms have drastically changed the landscape of what philanthropy looks like for Millennials, providing a more accessible, transparent and engaging experience for giving. These tools greatly shorten the path to donation, allowing people to give to causes they care about with one click from anywhere on their mobile devices.

Websites for nonprofits are still the most important online driver, and even more so when it comes to deciding to give, as compared with social media. This is even more true for younger donors, whose interest and trust in online platforms can best be maintained through intuitive navigation and compelling, beautiful design.

Social Media’s Influence

Social media is increasingly indispensable in helping to influence Millennial attitudes toward giving. Platforms such as Instagram, TikTok, and Facebook further magnify charitable initiatives by showcasing them in visually striking narratives that younger audiences are drawn to.

Storytelling is everything here—nonprofits that tell genuine stories of their impact tend to get more people engaged. Big viral campaigns such as the recent ALS Ice Bucket Challenge prove that campaigns with shareable content can raise millions of dollars while increasing awareness.

Nonprofits can maximize the impact of their posts by creating relevant content that speaks to their audience, making it relatable and shareable.

Online Donation Tools

All of these online tools make it easier and more attractive to give, providing users with a simple and efficient giving experience. Integrated payment solutions on nonprofit websites create frictionless experiences, and with mobile optimization, donors are able to give on the spot.

QR codes have become widely used by younger generations. Privacy concerns aside, almost half of Millennials and Gen Z would rather use them than cash or cards. Providing diverse payment methods—including text-to-donate—takes it a step further, creating more convenience, especially for younger, tech-focused donors.

The Rise of Crowdfunding

Crowdfunding platforms such as GoFundMe give individuals—especially younger ones—the power to go directly to the causes they care about, tapping into that collective energy. The power of small, successful campaigns seen in disaster relief fundraising shows what can happen when small contributions have a collective impact.

Through the technology of crowdfunding, nonprofits can learn how to connect with this growing base of young donors. This style makes even little gifts transformational … particularly for those who are economically insecure.

Transparency and Accountability Matter

In philanthropy, transparency and accountability are now foundational pillars of the philanthropic ecosystem where trust and credibility are paramount. Younger donors, millennials especially, are demanding more transparency from nonprofits — to be open about what they’re doing and the tangible outcomes they generate.

By prioritizing these five values, nonprofits and fundraising organizations can deepen their relationships with current donors. Perhaps most importantly, they can reach a wider audience.

Why Transparency Is Key

Millennials highly value transparency, as it gives them confidence that their dollars are going to make a real impact. In such a crowded nonprofit landscape, organizations that are willing to share detailed financial reports, success stories, and failures will be the ones that rise to the top.

We’ve found that nonprofits who share in-depth, comprehensive annual reports or provide ongoing, quarterly or even real-time progress toward a major project tend to have much better engagement. Not only does transparency help build confidence among the public, it helps keep donors invested over the long haul.

Telling honest stories of what has been accomplished, as well as what challenges lay ahead creates a feeling of camaraderie between the nonprofit and their backers.

How Nonprofits Can Improve

One simple way for nonprofits to improve transparency is to commit to open, honest communication. Frequent and easy-to-understand reporting on key financial metrics, including a breakdown of how donations money is spent, is one important first step.

Delivering regular updates on program outcomes and impact helps ensure that donors—large or small—can easily visualize and understand the difference they’re making. Requesting feedback from donors and beneficiaries alike will further show a true commitment to improving.

For example, nonprofits can develop and distribute donor surveys to measure changing donor priorities and better inform fundraising strategies. These efforts create trust and goodwill, and they bring in new supporters who are committed to accountability.

Measuring Impact Effectively

Establishing metrics to measure impact helps nonprofits track progress. Data collection methods like surveys or case studies provide valuable insights for program evaluation.

Sharing this data with donors shows how contributions drive change, fostering deeper engagement. Impact assessments guide organizations in refining initiatives, ensuring resources are used effectively.

Social and Environmental Causes

Millennials, as next gen donors, are forcing philanthropy to evolve by prioritizing social and environmental causes, reflecting their philanthropic identity. This generation drives living with social purpose, striving for immediate and measurable impacts rather than just fulfilling the same old donation checkbox. Their grantmaking showcases a profound dedication to addressing inequality, sustainability, and systemic change within the philanthropic community.

Top Causes for Millennials

Millennials are deeply passionate about combating the most urgent challenges facing our communities and planet. Key causes include supporting renewable energy projects, conservation efforts, and initiatives to reduce carbon footprints.

They also back movements that fight systemic racism and promote equity. Funding scholarships, literacy programs, and equal opportunities for underprivileged students is another area of focus. Additionally, they advocate for access to mental health care and combating stigma.

Impact Investing Explained

From this fertile ground, impact investing has taken root as a creative extension of traditional philanthropy, combining financial returns with social expectations. Millennials are more than ever focusing their money on investments that advance their passions—whether that’s affordable housing or sustainable agriculture.

Platforms with specialized impact funds find great success, mirroring this two-birds-one-stone philosophy of investing. Nonprofits stand to gain by engaging in strategic alliances with these impact investors—multiply their work, strengthen their mission, win support of Millennials.

Sustainable Giving Practices

Sustainability is the driving principle of Millennial giving. They appreciate integrity, like environmentally responsible approaches to campaigns and transparency in their organization.

Moreover, they promote sustainability by prioritizing multiyear commitments versus one-off gifts. For instance, long-term investments in clean water projects show a commitment to sustainable solutions.

Millennials are pushing nonprofits to become more green too, making sure that nonprofits’ missions are consistent with environmental causes.

Overcome Challenges Engaging Millennials

As nonprofit organizations work to build relationships with Millennial donors, it’s important that they have a good grasp of what makes these donors tick. Millennials, who often see themselves as agents of social change, are redefining philanthropy by prioritizing hands-on involvement and long-term impact.

91% of this group’s members gave to charity in the last year. Beyond that, many of them actively volunteer or mentor, which shows their commitment beyond just financial contributions. Nonprofits all too often find themselves unable to adapt to these changing realities.

Adapt to Millennial Expectations

Fulfilling Millennial expectations means nonprofits must challenge what they’ve always done. Millennials want communication tailored specifically to them—what they care about, what their goals are.

Even a small nonprofit trying to save the environment can make some effective changes. They can even feature member contributions to targeted initiatives like their reforestation efforts near them.

Embracing innovation as well as tradition is just as important. Tools like social media campaigns, crowdfunding platforms, and live-streamed events take engagement to new levels. Regular feedback loops must be the other half of this equation.

Hearing potential donor suggestions and then actually going and refining strategies to reflect that input creates a sense of collaboration and trust.

Communicate Effectively

Clear, compelling communication is an essential ingredient to effective engagement. At its heart, storytelling is the best way to galvanize an emotional connection with Millennial donors.

Whether it’s telling the story of how a mentor changed the course of a student’s life, emotional appeals can hit home. Being transparent about how that money is being spent goes a long way in building that trust.

Having a presence across several platforms—email, social media, and mobile applications—will keep your outreach more accessible and hold Millennials’ attention for longer.

Build Trust and Relationships

First, we recognize that building trust is a continuous process. Millennials are more likely to seek meaningful relationships with nonprofits and who they know among their peers.

Frequent trainings, professional development networks, and awards programs help build an esprit de corps. By focusing on building these types of meaningful relationships, organizations can inspire Millennials to advocate for your causes far more valuable than monetary contributions.

Future Trends in Philanthropy

The landscape of philanthropy is changing faster than many imagine, fueled by changes in technology, cultural values, and the emerging perspective of next-gen donors. Millennials, especially younger millennials, are leading the charge for new paradigms that fuse innovation with social impact, making it crucial for organizations to recognize these realities to remain effective in the philanthropic space.

Cryptocurrency and Giving

Cryptocurrency has started to become a big tool for donations, notably among Millennials who love the transparency and decentralized nature cryptocurrency offers. It enables rapid, borderless transactions—which can be especially important in support of international causes.

For charities, this can mean direct access to a whole new donor population. For example, nonprofits such as Save the Children have already begun receiving Bitcoin donations, which has allowed them to fund their essential programs across the globe.

Challenges still abound, including price volatility and the need for secure, widely accepted systems. Nonprofits need to put in the time to better understand digital currencies and think about aligning with platforms that make it easy to donate in crypto.

Mobile Payment Solutions

The explosive growth of mobile payment technology has changed the way individuals interact with nonprofits. Platforms such as Venmo or Apple Pay ensure that the act of donating is immediate and easy to accomplish for people who mostly use their smartphones for everything.

Mobile-friendly alternatives further increase accessibility, allowing donors to contribute while attending events or even on-the-go. Charity campaigns that use QR codes to enable consumers to make an immediate donation have resulted in conversion rates six times higher than standard campaigns.

Adapting websites and platforms for mobile use is no longer just a nice add-on—it’s imperative.

Personalized Giving Experiences

Personalized messaging—in the form of regular email updates or specific donor outreach campaigns—makes donors feel appreciated and recognized for their contributions. Honoring important gifts, like highlighting major donors in a newsletter, builds goodwill.

Organizations that provide tailored giving opportunities, such as the opportunity to sponsor specific programming, foster more meaningful connections and create more sustained support over time.

Socio-Economic and Cultural Influences

Millennials and Gen Z are changing the face of philanthropy, with their approach to giving profoundly shaped by the socio-economic landscape, cultural narratives, and global networks they inhabit. Understanding these dynamics is key for nonprofits and funders who want to connect with next gen donors.

Impact of Socio-Economic Factors

This speaks volumes about the economic conditions and their tremendous influence on Millennial giving behaviors. Millennials are financially squeezed between burdens from student debt and concerns over housing affordability.

As an outcome, they tend to prefer to make smaller, recurring gifts rather than one large, lump sum donation. Organizations will need to understand these income trends and provide flexible solutions, including subscription-style gifts, that meet diverse financial ability.

Inclusivity is very important to Millennials, who look for causes that meet the needs of a diverse group of donors and mirror their own experiences. In fact, nonprofits that create transparency and show clear outcome and impact often appeal more effectively to this group.

Cultural Values in Giving

These cultural values are a big part of what shapes Millennials’ philanthropic priorities. Many consider family and community central to their charitable decisions, often supporting causes tied to their cultural heritage or immediate social circles.

For instance, a second generation immigrant may want to work with organizations that help underserved communities back in their country of origin. Millennials care about purpose and values as they relate to every aspect of their lives.

Their passion drives them to fight for social justice, climate justice, and health equity, shaping their donations, philanthropy, and spending on brands. In order to engage these donors, nonprofits need to have an awareness of cultural perspectives and incorporate that awareness of inclusivity into fundraising outreach.

Global Perspectives on Philanthropy

Such global trends influence the ways that Millennials give. As technology closes distance around the world, Millennials are more likely than previous generations to favor collaborations across borders to fight global poverty or achieve environmental sustainability.

They look for nonprofits that combat systemic issues and promote collaboration between countries. Organizations that think globally can align much more closely with such core values.

Conclusion

In doing so, millennials are becoming more than just donors. They’re taking on innovative roles as active participants in philanthropy’s new era. Their reliance on social impact, transparency, and digital tools has opened up new avenues for impactful change. By supporting causes related to social justice, environmental sustainability, and community-driven initiatives, they’re changing the game when it comes to giving.

To engage this generation, you need to adopt their values. Connect with them wherever they are: online, engaged, and hungry for impact. Nonprofits and the institutions that embrace this change will not just continue to exist, they will prosper in this brave new world.

Indeed, the future of philanthropy may be brighter than ever, but now is the moment for philanthropy to forge deeper, more authentic partnerships with these millennial changemakers. Together, we can redefine philanthropy and make a long-lasting change that will benefit us all.

Frequently Asked Questions

What is millennial philanthropy?

Millennial philanthropy is an ongoing process showcasing how next gen donors are transforming the landscape of charitable giving. They emphasize donations that truly drive change. By leveraging digital platforms, these young philanthropists are amplifying their voices on issues they care about, such as social justice and environmental concerns.

How are millennials reshaping philanthropy?

Millennials, as next gen donors, are redefining philanthropy’s role in society by pushing for greater transparency, accountability, and measurable outcomes. They want to be personally involved with the charitable causes they support, emphasizing authenticity while leveraging crowdfunding and social media to amplify their impact.

Why do millennials prefer digital platforms for giving?

Millennials, as next gen donors, have a huge preference for convenience and accessibility. Digital platforms have helped to ensure that charitable donations are quick, easy, and transparent. These tools empower them to communicate directly with organizations and follow the impact of their philanthropic efforts.

Which causes do millennials care about the most?

Millennials, as next gen donors, are leading the charge for social justice, climate action, mental health advocacy, and education equity. They are particularly passionate about charitable causes that align with their values and demonstrate a direct, positive benefit to their communities.

Why is transparency important to millennial donors?

Perhaps most importantly, millennials, as next generation philanthropists, want to know how their charitable donations are being spent. Transparency builds trust and guarantees that their contributions are making a tangible difference, encouraging them to support organizations that share financial and impact reports publicly.

What challenges do nonprofits face in engaging millennials?

Nonprofits find it hard to attract and retain next gen donors due to their focus on authenticity, digital interaction, and tailored direct communication. Organizations must understand these preferences to cultivate long-term relationships with young philanthropists.

What trends are shaping the future of philanthropy?

Technology, social media, and a concentration on measurable impact are redefining the future of gen philanthropy. Causes related to sustainability, diversity, and equity will continue to be the focus, propelled by the priorities of wealthy millennials and next gen donors.