Millennials are agents of change for communities

As millennials use their skills and dedicate their lives to changing our communities and world, nonprofit organizations, and the community at-large, must continue to acknowledge and engage them to create positive change.

The Case Foundation, a private nonprofit, released The Millennial Impact Report in 2019, identifying several factors in how millennials engage with causes and social change. According to the study, millennials:

• Are passionate about issues, not institutions, with 90 percent saying they are driven to donate because of a compelling mission or cause, not a specific organization.
• Are everyday changemakers and believe in the power of activism. This includes small and nontraditional actions, especially utilizing technology.
• Believe that all assets are equal – that their time, skills, talent, money, and voice have equal value.
• Are influenced largely by their peers.

The great news is that millennials want to give, serve and be here for good, and that by understanding how they want to be engaged, nonprofits can build relationships and engage these young adults to create positive change in the community.

Engaging the millennial generation in philanthropy is also key to the future of nonprofits. The Great Wealth Transfer in America is happening now, with an unprecedented $9 trillion being passed down to the next generation by 2027 according to a study by Locus Impact Investing, in partnership with the Center for Rural Philanthropy.

Over the next 50 years, this number is estimated to reach nearly $90 trillion. These assets will be passed from baby boomers to their children and other heirs, most of whom are part of generation X and millennial Americans. In Iowa alone, it has been estimated that over $824 billion will pass between generations over a 50-year period that started in 2010.

While boomers often are the focus of nonprofit fundraising efforts, it is going to be crucial for local charitable organizations, and financial and estate planners, to capture the attention of their heirs, earn their loyalty, and help them navigate this transfer to fulfill their personal and charitable financial aspirations.

These tips on engaging this important group of philanthropists from Indiana University Lilly Family School of Philanthropy’s Dr. Patricia Snell Herzog and master’s student Julia Kohl align with The Millennial Impact Report finding.

• Explain why a cause is important. Millennials want to know that their donation is making a difference, so focusing on gift impact is helpful.
• Consider different ways to engage millennials. They enjoy participating in events and young professional groups.
• Create social experiences for millennials, and then focus on how they can share information about their cause through a broad social network.
• Use technology, including social media and email, to engage with them and ask for donations.
• Be transparent, and work on building relationships. NextGen donors are more likely to support an organization if it is trusted by family and friends.

There are many ways to engage the millennial generation of donors and keep wealth local to benefit Iowa communities forever. Professional advisors and local community foundations are great resources to learn about the best giving options for these donors and their communities.

The Foundation manages over $133 million in assets and has granted over $101 million to organizations since 1956.