Tag Archives: millennials

Social Media’s Influence on Fundraising “Modest” But Growing

Social media is playing a bigger role in connecting donors to nonprofits, according to the latest donor research just released in “The Burk Donor Survey…Where Philanthropy is Headed in 2013.” The report is the fifth annual survey by Penelope Burk at Cygnus Applied Research, and the second to explore the role of social media in fundraising.

Conducted in 2011 and 2013, the research shows that social media is not yet a major factor in directly driving more donations, or larger donations. But through social media, nonprofits are successfully attracting people to events, enlisting more volunteers, and turning supporters into ambassadors for their cause. Even though the hard data doesn’t exist, it’s reasonable to conclude that social media is indirectly leading to more gifts and larger gifts by engaging supporters in these and others ways.

I asked Penelope about some of these trends.

Q: Your report calls social media a “modest player” in donor communications, but with 57 percent of young donors following nonprofits through social media, do you think it’s gaining traction?

A: Yes, it is gaining traction. It’s only a modest player when fundraisers look at the end goal in fundraising, which is raising money. But indirectly, social media offers the two-way communication platform that is essential in building relationships with young donors and potential donors. Young donors do not respond well to direct asks absent of the opportunity to engage.

Q: Should organizations factor volunteering, event attendance, and other types of engagement when they’re measuring the ROI of their social media efforts?

A: Absolutely, since young donors prefer a multi-faceted route to giving. The opportunity to be directly involved and then have a good experience volunteering, or being part of a discussion group for example, is what then inspires them to give. Older donors are more used to giving and leaving the decision-making to those who run the charity.

However, given the high rate of donor attrition and dissatisfaction with uninformative appeals and communications, young donors may be onto something. I think they are demanding a kind of relationship from the start that will ensure a better flow of information and a more inclusive approach by not-for-profits. This should bode well for donor retention and generosity once they do start to give.

Q: Your 2011 survey suggested that being seen as an “expert” helps attract social media audiences for nonprofits. But you also said it’s not enough to just call yourself an expert. How can a nonprofit position itself in a credible way?

A: It’s commonplace for not-for-profits to declare themselves as the first, the biggest, or the best at what they do absent of any objective information that confirms that assertion. So statements like those are meaningless to donors at any age level and are actually viewed as suspect. It is much more effective to simply state an achievement your organization has made, a goal you have reached, or a new initiative you have undertaken in specific terms, reporting how you got there and the impact it has had on the people you serve. That allows readers to conclude for themselves that you are expert, which is a much more powerful way to establish credibility.

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Download a free executive summary or purchase “The Burk Donor Survey…Where Philanthropy is Headed in 2013” at www.cygresearch.com.

Young Donors are Different: What the Latest Research Means for Fundraisers

Young donors differ from other donors in many ways, and new research on their interests, preferences, and behaviors suggests several ways you can engage them more effectively. Penelope Burk, president of Cygnus Applied Research and the “Burk” in the annual Burk Donor Survey, talked to me about findings in her 2013 research that relate to young donors.

What Young Donors Support
Burk’s research shows that many young donors support human services (54%) and arts/culture (47%). Many people think of the environment as a favored cause for young people, but research doesn’t back that up. Only 21% of donors under the age of 35 supported environmental organizations, compared with 34% of middle-age donors and 45% of donors 65 and older.

What Appeals are Appealing
Young donors are far less likely to respond to direct mail appeals (31%) than donors age 35-64 (50%) and donors 65 and older (68%). They are much more likely to respond to online appeals and give electronically (49%) than middle-age donors (37%) or older donors (32%). Events are appealing to all age groups, Burk said. “Young donors are as interested in giving through fundraising events as older donors in the study. Events in which they can actively participate, rather than simply being guests, tend to be more popular with younger donors.”

Implications for Communications
Burk says the biggest difference between older and younger donors is their preferences for communications. “The youngest donors (under 35) appear to be less patient and they make decisions about what they will and will not read more quickly,” she said. “Young donors are more sensitive to getting too many emails and they are less forgiving of charities that send communications that appear to be uninteresting.”

Burk’s advice for fundraising appeals to young people: Get to the point. They say they are too busy to read a lot of text, so “make communications content (especially the first sentence) compelling enough to persuade young donors to take the time.”

Young donors have a decided preference for electronic over print communication. Only 3% of those receiving information online would have preferred to get a print piece in the mail, but 45% of those getting print currently say they would much prefer electronic communication. “Not-for-profits should make every effort offer their donors the opportunity to transition into electronic communication with every communication they send,” Burk said.

The Giving Potential of Young Donors
While some organizations overlook younger donors because of they currently give less than other donors, Burk’s research shows that young people can give more. In fact, 58% said they definitely or probably could have given more to charitable causes last year, a figure considerably higher than for older donors (42%).

“While the average gift value of young donors is much less than their middle-age or older counterparts,” Burk said, “it appears that either the tactics fundraisers use to acquire donors and renew their support are not reaching people under 35, or fundraisers are under-asking, assuming that young people cannot give more generously.”

Do these findings match up with what you’re seeing in your organization? How do you tailor your communications to younger donors?

Download a free executive summary of the 2013 Burk Donor Survey or purchase the full survey.

 

Google’s New Android App Encourages Social-Giving: A Solution to Apple’s Ban on Donation Applications

Apple’s got to catch up with what people are asking for. Just as consumers want to be able to shop through an app, they want easy and safe ways to support causes they care about. Good for Google for supporting socially minded businesses and nonprofits (and the people who support them) this way.

Socially Minded Marketing

Anna Seacat is a marketing consultant at SociallyMindedMarketing and a graduate student at Southern New Hampshire University.  Follow her at @AnnaSeacat

As most of my followers have figured out, I am passionate about socially-minded businesses.  One such business is a local favorite of mine, Indianapolis-based, Achieve.  Achieve helps non-profit groups create memorable fundraising campaigns.  As much as I admire Achieve’s utilization of fundamental marketing communication principles to help non-profits, I am equally as enthralled with the compelling research that the company shares with social enterprises.  For example, on July 18, 2013, Achieve released its annual Millennial Impact Research report that outlined new marketing strategies, which social enterprises can employ to “attract and engage” members of Generation Y.

Donors Prefer Giving to be Easy and Enjoyable Social Experiences

Within this informative report, insights about mobile social media applications were revealed; namely, almost half of Achieve’s respondents actively followed nonprofit organizations…

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Millennials and the Future of Your Nonprofit: Q&A with Derrick Feldmann

If you’re not paying attention to the influence and power of Millennials (people born in 1980 and later), you’re not paying attention to the future of your nonprofit and your cause(s). The 2013 Millennial Impact Report details how Millennials give, connect, and involve themselves with causes — and contains specific tips about how to engage young people.

I recently caught up with Derrick Feldmann, CEO of Achieve and the head of research for the Millennial Engagement Survey, and asked him about what his research means for old people like me.

Q: Many organizations like mine have an established donor base of Baby Boomers and Traditionalists. If non-Millennials make up the majority of current donors, how do you recommend that nonprofits balance the needs of Millennials with the more traditional needs of older donors?

A: I think the needs of older donors and Millennials are merging. For instance, the movement for more transparency in fundraising is not specific to Millennials but becoming a trend across all generations. Millennials are helping our causes understand how to better communicate the direct impact of gifts, how to report information on the cause issue, and how to create better relationships. This is how philanthropy is changing and in time, other generations will not only ask for these type of relationships but demand them.

Q: How can nonprofit professionals make a case for engaging Millennials, when their bosses see that most fundraising dollars are coming from other age groups?

A: I always say that if your organization is strapped for cash, you have other things to worry about — i.e., your business model and how to generate dollars for programs. For those not in that position, the case is simple and it stretches beyond giving. Millennials are the best marketers for the organization. In terms of outreach, a Millennial, within their own words, can spread an idea better and faster than any other demographic. Use this talent and skill to share the most relevant information about the cause. In addition, Millennials spend discretionary dollars on things that matter to them. Take this opportunity to engage a first time donors in micro ways in order to generate brand ambassadors for the organization.

Q: As you talk to people about your research, what are the biggest misperceptions about Millennials?

A: Millennials don’t give. It is not true. They give in micro ways — time and dollars — and it tends to be impulsive at times but giving is occurring. Another common misperceptions is around the workplace. Millennials demonstrate work life blending and at times this can be confused as work life imbalance or even disengagement. Millennials merge their professional and social lives and for some that is a challenge when their generation was focused on work life balance.

Q: Are Millennials unique in their attitudes and behaviors, or do they simply reflect the changing world around them? In terms of their social activism, how do they differ from other generations?

A: It goes back to the blending concept we have been talking about. Millennials are blending their interests in social activism in everything that they do — especially in consumer spending. Millennials seek to understand how products are produced and how they have an impact on the world. This is a unique characteristic we see in Millennials.

Q: Your research shows that a pet peeve of Millennials is getting too much email. How does a nonprofit know how much is too much?

A: We have watched international development and environmental causes send emails once a week and their Millennial followings enjoy the content and continue to subscribe. Why? Because the content is brand new each time. It is relevant, contains images, personal, and draws you in as a reader. The complaints about too much email comes from Millennials who receive the same content every other week from an organization. Frequency should be based on your organization’s ability to produce content about your cause — not your organization. Information about what is happening related to the work – not about your organization doing the work. In the examples I gave, the organizations that send information every week have something to report on the issue and Millennials enjoy reading the content.

Q: The Millennial Impact Report has lots of specific recommendations for nonprofits that want to connect with Millennials, in terms of calls to action, websites, social media, and volunteer opportunities. But nonprofit professionals have so many competing priorities. If they want to improve their engagement with Millennials, where should they start?

A: First, ensure you are not turning Millennials away. Organizations should examine the way they present themselves to external audiences. How they use human voice and show the people they help. Redevelop communications that speak to the manner in which Millennials like to receive such messages. Second, create micro volunteer opportunities. Develop small bursts of volunteer engagement for Millennials to perform anywhere. Third, talk with Millennials in social media. Seek out those that care about the issue and talk with them. Do not post — talk and describe something new every day that they may not know about.

Q. I know you’re optimistic about how Millennials will help shape philanthropy and social activism. What are some specific ways this generation will change social activism and the way nonprofits operate?

A: I addressed that question in a recent piece I wrote for the Case Foundation blog, “The Future of Your Nonprofit Organization and Why You Need to Join This Conversation.” In it I said I care about Millennials getting involved in causes, but I care more about the state of the organizations that are trying to make a difference in our communities. I worry they are not prepared to engage Millennials who want to be involved and have not adapted to the growing business changes this generation and others are demanding, such as transparency, real-time reporting, digital connectedness, and collaborative leadership. Rather than perpetuate the ongoing development of more organizations, why not find better ways to get Millennials and organizations working together?

What it’s going to take is getting organizations interested in operating differently — more openly, creating more collaborative work and constituent environments, and refining how external audiences can communicate with, involve, and give so it is easier, faster, and more trustworthy.

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Derrick is also co-author (with Kari Dunn Saratovsky) of Cause for Change: The Why and How of Nonprofit Millennial Engagement, which I highly recommend. For more information, download the 2013 Millennial Impact Report and follow Derrick and Kari on Twitter.