The Generational Shift: Navigating the Future of Donations
With $30-84 trillion in wealth set to change hands, nonprofits must adapt their strategies to engage a new wave of givers.
On the surface, the most recent reports on charitable statistics in the U.S. paint a rosy picture for nonprofit organizations. In 2023, Americans donated over half a trillion dollars, with the majority ($374 billion, or roughly 67% of all charitable giving) coming from individuals. Similarly, 85% of affluent households maintained or increased their giving, while corporations and foundations are giving more than ever.
However, nonprofit organizations face a looming shakeup in the status quo as younger generations are poised to inherit an eye-watering $30-84 trillion—the largest transfer of generational wealth ever—in the coming decades and become the new top givers. The current average age of repeat donors is 64, and the reliable methods that nonprofits use to appeal to these Baby Boomers have not been as effective with Gen X, Millennials, and Gen Z.
It’s not just that the average donor demographic is changing in America, either. At last count, there were over 1.8 million 501(c) organizations, so not only is there more competition for donor dollars amongst classic nonprofit organizations, but they’re also competing with the new wave of donation sites like GoFundMe, Venmo, and Kickstarter for relevancy and limited donation resources.
This is why it’s vital for nonprofits to have a fundamental understanding of the values, core beliefs, and motivations of the new generations they’ll be relying on now rather than later. This is especially important if they want to reach Gen Z and Millennials to help create long-term repeat donors. To this end, we at Grow Progress conducted an Audience Understanding Survey to learn about the values, worldviews, and donation habits of 18 to 54-year-olds.
How We Tested
Using the Grow Progress Audience Understanding Survey tool, we surveyed 600 Americans between the ages of 18 and 54 to better understand their recent donation history to nonprofits, mutual aid funds, and crowdfunding.
We asked them, “Which of the following best describes any donations you’ve made over the last 12 months?”
- I have not donated to any nonprofits or crowdfunding campaigns
- I have donated to one or more nonprofits and one or more crowdfunding campaigns
- I have donated to one or more nonprofits
- I have donated to one or more crowdfunding campaigns (such as a GoFundMe, mutual aid fund, or sending money to someone in need via Venmo or similar means)
Afterward, we asked them to explain why they selected that option in their own words via an open-ended question. In less than 48 hours, we had the following results.
Topline Results
Overall, 39% of participants said they had not donated in the last 12 months. Of the 61% who had donated, 36% donated to nonprofits, 14% donated to crowdfunding, and 11% said they donated to both nonprofits and crowdfunding.
Key takeaways on how 600 18-54-year-old Americans donated in the past 12 months.
Optimistically, the fact that 61% of participants had donated in the last 12 months and that 47% had been to nonprofits bodes well for nonprofits that these younger generations are willing and able to donate money to causes they believe in.
But how can nonprofits persuade more people to donate, especially those who had previously donated but only to crowdfunding? Nonprofits need to understand the motivations and beliefs within each key participant category and how different subgroups within them operate.
Demographic Highlights
To better understand how people donated the way they did, our team of experts looked into the data to understand the demographic breakdown of each donation category. We specifically looked at age (18-34 and 35-54), annual household income ($0-49k, $50-99k, and $100k +), and gender.
The key takeaways we noticed were:
- Respondents under 35 were less likely to donate, while those who did were more likely to be Crowdfunding-Only Donors than those aged 35-54.
- Higher-income respondents were more likely to donate across all categories.
- Women were less likely to donate; when they did, they were more likely to donate to crowdfunding than men who donated.
Age
While we tested participants between 18 and 54, we divided them into two groups: 18-34 and 35-54-year-olds because we wanted to learn more about the similarities and differences among generational cohorts.
Among 18-34 year olds:
- 43% did not donate
- 10% donated to both
- 16% only donated to crowdfunding
- 31% only donated to nonprofits
Among 35-54 year olds:
- 36% did not donate
- 11% donated to both
- 12% only donated to crowdfunding
- 41% only donated to nonprofits
The younger crowd of 18-34-year-olds were less likely to donate overall but saw slightly higher crowdfunding donations than their older counterparts. The younger crowd was also less likely to donate to nonprofits.
Income
We split respondents into three groups for annual household income: $0-49k, $50-99k, and $100k + to track trends across income levels.
Among $0-49k Household Income:
- 49% did not donate
- 8% donated to both
- 12% only donated to crowdfunding
- 31% only donated to nonprofits
Among $50-99k Household Income:
- 33% did not donate
- 11% donated to both
- 15% only donated to crowdfunding
- 42% only donated to nonprofits
Among $100k + Household Income:
- 9% did not donate
- 23% donated to both
- 20% only donated to crowdfunding
- 48% only donated to nonprofits
People making more than $100k were the most likely to donate in any form and were the only group more likely to donate to both than just crowdfunding. Despite this, nonprofits still receive the bulk of donations across all three income brackets compared to other donation options.
Gender
When we looked at women and men, we found the following:
Among Women:
- 46% did not donate
- 12% donated to both
- 12% only donated to crowdfunding
- 31% only donated to nonprofits
Among Men:
- 32% did not donate
- 10% donated to both
- 17% only donated to crowdfunding
- 42% only donated to nonprofits
Men were more likely to donate and donate to traditional nonprofits at a higher rate. Women were less likely to donate, but when they did, they were more likely to donate to crowdfunding than men who donate.
Values Segment Findings
We also looked at each donation category (didn’t donate, donated to crowdfunding, donated to nonprofits, donated to both) and analyzed their general demographic makeup, values, and reasons for donating the way they did.
We accomplish this using our Grow Progress Value Scores. Each respondent is asked how well 17 universally held human values, such as Achievement, Equality, and Patriotism, apply to them. Their responses are calculated into value scores corresponding to Grow Progress Values Segments.
These Value Segments are people grouped by similar values, personality traits, psychographic qualities, demographics, and political attitudinal measures. Examples of these segments are Anti-Authority Progressives, Disengaged Doubters, and Religious Conservatives.
Lastly, to hear from them in their own words, we also asked them an open-ended question: “Why did you answer the way you did when asked: Which of the following best describes any donations you’ve made over the last 12 months?”
Non-Donors
Demographic Highlights
- 70% make under $50k annually
- 55% have an education level of high school or less
- 38% did not vote in 2024
- 38% say they’re unsure of their parents’ donations or that their parents did not donate to charity
Values Highlights
Open-Ended Responses
Some respondents in this segment cited their financial situation and hardships as barriers to donating. One respondent said, “Times are tough, we’re barely making it by. I would love to donate but don’t have extra money to donate and honestly, I’m not sure where my donations would really go.”
When asked about their most significant challenges in everyday life, many mentioned their finances, including a few who mentioned homelessness. We saw several variations of, “I can hardly afford to keep me going, let alone donate.”
When asked what social or political issues they cared about most, they mentioned immigration, the economy, inflation, racism, healthcare, and abortion.
Nonprofit and Crowdfunding Donors
Demographic Highlights
- 31% make over $100k annually
- 34% are Latino
- 43% attend church weekly
Values Highlights
Open-Ended Responses
This group’s top social and political issues included healthcare, the economy, climate change, immigration, and racism.
One donor said they care about a cause’s “Impact, transparency, personal connection, urgency, and alignment with my values.” Values also came up in others, saying they looked to their faith and cited donations to their church and religious organizations.
Many people mentioned researching to help them decide where to donate. Effectiveness and how direct the impact is were also at the top of many donors’ minds. “I like places where my donations go straight to helping people.”
Some people donate to causes they hear about locally or from friends; a few mention an emotional connection to a cause. “I also support friends and family or other stories that stir up my heart when I see a GoFundMe.”
Crowdfunding Only Donors
Demographic Highlights
- 55% are under 35
- 58% are men
- 22% make over $100k (over $100k make up 15% of the whole sample)
Values Highlights
Open-Ended Responses
Respondents in this group shared that they hear about causes from friends and social media more than other information sources. Some said they look for the most urgent needs by searching for what people put in their GoFundMe descriptions.
One respondent said, “I donate to the ones that give the best explanation.” Another said, “People are going through a lot. I can help them get that surgery or get that pressing need sorted out.” A third said, “I have donated to GoFundMe because I have seen certain individuals’ stories and mishappenings, and I was compelled to give.”
One respondent discussed the spontaneity of their donations: “I typically make occasional donations to causes I believe in, but I don’t make regular or large contributions. My donations tend to be more spontaneous and based on specific needs or events.”
Respondents mentioned donating to help Palestinians, people facing medical bills like cancer, and people who lost their homes in recent fires. A couple of people mentioned helping pay for funerals.
Nonprofit Only Donors
Demographic Highlights
- 49% have an education level of a bachelor’s degree or higher
- 57% are men
- 41% say they donate to the same causes as their parents
Values Highlights
Open-Ended Responses
Similar to other Value Segments, respondents in this segment care about the economy, healthcare, climate change, and immigration. The top-mentioned organizations donated to include the Salvation Army, the Red Cross, Goodwill, St. Jude, organizations addressing hunger, Habitat for Humanity, and UNICEF.
Many people talk about donating locally (particularly to homeless shelters), to their churches, and faith-based organizations. Several people mentioned looking at organizations’ mission statements when deciding where to donate. One respondent said, “I just choose which one I feel needs money at the moment. If I think I’ve heard they’re struggling, I give towards that.”
Another mentioned personal and emotional connection. “I have had family members with Alzheimer’s, and I hate to see people go hungry since I know what it feels like.” Another said, “If I’m inspired by their cause and see they want to do good in the world, I’ll donate.”
Conclusion
As a historic wealth transfer shapes the future of donations, nonprofits must pivot to effectively engage younger generations. The good news is that 42% of donors in this survey said they’d been engaged with a cause since young adulthood—but even if young people aren’t actively giving, it’s essential that your mission, messaging, and brand resonate with them.
Understanding their values and preferences is essential for Nonprofits to maintain relevance in a crowded charitable landscape. By adapting strategies now, nonprofit organizations can harness the potential of emerging donors and secure vital support for years to come.
Future research could include running Rapid Message Testing to hone in on the messages that would persuade crowdfunding-only donors or non-donors to donate to nonprofits if and when they can. For example, we saw a persuasion pattern in this case study and a recent one on wildfires about personal stories resonating with respondents, leading to a desire to help individuals.
Ready to find the messaging that resonates with your audiences? Learn more about Grow Progress’ Audience Understanding Surveys and Rapid Message Tests, and be sure to sign up for our newsletter and never miss a beat.
