© Bank of America Corporation. All rights reserved.
At a time when many nonprofit organizations are faced with an aging donor base and are trying to cultivate new support, increasing attention is turning to an emergent group of new leaders and influencers: millennials.
According to Pew Research Center, millennials are on track to become the largest U.S. generation in 2019, with immigration adding more numbers to this group than any other. This population is increasingly being defined as people born from the early 1980s to 1996, with anyone born from 1997 onward being part of a new generation.1 Additional research by the Case Foundation states that millennials use similar methods to engage in philanthropy as other generations, but the motivations behind their involvement often differ.2 Millennialstend to be tech-savvy and entrepreneurial, and they frequently look to engage with nonprofits on multiple levels, preferring to use their unique skill sets as well as their money.
As organizations seek to work with millennials, it is increasingly important for them to determine clear strategies for leveraging both in-kind and monetary contributions through social media outreach, peer networking events, e-newsletters and face-to-face engagement.
By developing programming that integrates millennials into the mission of the organization while also providing leadership opportunities, nonprofits offer millennials the opportunity to gain a holistic perspective of organizational operations, including development strategies, programming and governance procedures. If done with intention, these engagements can translate to meaningful, long-term involvement —to the benefit of both nonprofits and their millennial donors.
In thinking about program and leadership engagement opportunities for millennials, nonprofits should consider tailoring their approach to fit the key motivations of millennials. Tips for engagement include:5
Millennials generally prefer to ease into relationships with organizations before fully committing to a cause, so organizations should consider creating opportunities to pull them into their programming early on in ways that may not require full-fledged commitment. The initial engagement—such as volunteering at a specific event or program, participating in a single fundraising initiative, or attending a board recruitment event—should offer millennials the ability to better understand the mission, organizational structure and desired impact of the nonprofit.
Organizations should consider examining their leadership structure to find ways to make room on their boards, committees and volunteer programs for millennials to have the ability to actively participate in a manner that feels meaningful to them.
Millennial donors feel a personal sense of social responsibility that helps enable them to be engaged with an organization on many levels. To harness this strength, nonprofits should consider involving millennials in the development and implementation of concrete initiatives through appropriate committees and leadership positions. While all donors should be treated with high levels of attention from staff, development professionals should thoughtfully work to engage millennials in the institution prior to making any ask. For this group, feeling a sense of ownership can lead to an ongoing, fruitful relationship.
Perhaps most importantly, organizations can to help millennials understand the tangible impact of the investment of their time, money, and knowledge. A key differentiator between previous generations and millennials is an emphasis on measured impact; millennials tend to look for full transparency into how their philanthropic investment is moving the needle for an organization, pushing organizations to show clear metrics that resonate in order to keep them highly engaged.
Many millennials tend to be deeply connected to the world and their peers through social media vehicles such as Facebook, Twitter, and Instagram. Their social media presence offers nonprofits not only unique and valuable insight into millennial giving patterns and social interest areas, but also the opportunity to reach and influence this group. Organizations should consider approaching their social media with the same methodical intent as they would a development strategy.
We works closely with our nonprofit clients to offer strategic support and guidance in how to engage millennials as thoughtful and impactful donors, supportive and educated board and committee members, and overall strong advocates for the organization through our extensive experience advising nonprofit clients.
We know the challenges our nonprofit clients face when working to meaningfully engage with millennials and can work with your organization to determine strategies and solutions for reaching this demographic as donors, volunteers, advocates and leaders.
Custom consulting services are available to clients with managed accounts of $10 million or more on the fiduciary platform.
1 Pew Research Center. Dimock, Michael. http://www.pewresearch.org/fact-tank/2019/01/17/where-millennials-end-and-generation-z-begins/ (Latest data available.)
2 The Case Foundation. (2017). The Millennial Impact Report: Phase 1. Retrieved from casefoundation.org/program/millennial-engagement/?nabe=6116754236899328:0&utm_referrer=http%3A%2F%2Fwww.bing.com%2Fsearch%3Fq%3Dmillennial%2Bphilanthropy%26src%3DIE-SearchBox%26FORM%3DIESR02. (Latest data available.)
3 Accenture. (2015). The “Greater” Wealth Transfer: Capitalizing on the Intergenerational Shift in Wealth. Wealth and Asset Management Services, Point of View. Retrieved from accenture.com/us-en/~/media/Accenture/Conversion-Assets/DotCom/Documents/Global/PDF/Industries_5/Accenture-CM-AWAMS-Wealth-Transfer-Final-June2012-Web-Version.pdf. (Latest data available.)
5 PricewaterhouseCooper. (2012). Millennials at Work —Reshaping the workplace in financial services. Retrieved from pwc.com/gx/en/financial-services/publications/assets/pwc-millenials-at-work.pdf. (Latest data available.)
Advancement Resources. (2015). Generational Differences in Giving: Engaging Millennials. Retrieved from advancementresources.org/Blog/In-the-News/44/Generational-Differences-in-Giving-Engaging-Millennials.aspx.
Goldseker, Sharna & Moody, Michael. (2013) Young Wealthy Donors Bring Taste for Risk, Hands-On Involvement to Philanthropy. The Chronicle of Philanthropy. Retrieved from philanthropy.com/article/What-Young-Wealthy-Donors-Want/154831.
Sources and external websites are provided for educational purposes only. Inclusion here does not imply Bank of America Private Bank’s endorsement of any content or content providers.
The information and views contained in this publication are for informational purposes only and do not provide investment advice or take into account your particular investment objectives, financial situations or needs. They are not intended as a recommendation, offer or solicitation for the purchase or sale of any security, financial instrument or strategy. Any opinions expressed herein are given in good faith, are subject to change without notice and are only correct as of the stated date of their issue.
Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “MLPF&S” or “Merrill”) makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation (“BofA Corp.”). MLPF&S is a registered broker-dealer, Member SIPC, and a wholly-owned subsidiary of BofA Corp.
Institutional Investments & Philanthropic Solutions (“II&PS”) is part of Bank of America Private Bank, a division of Bank of America, N.A., Member FDIC, and a wholly-owned subsidiary of BofA Corp. Trust and fiduciary services and other banking products are provided by wholly-owned banking affiliates of BofA Corp., including Bank of America, N.A. Brokerage services may be performed by wholly-owned brokerage affiliates of BofA Corp., including MLPF&S.