MILLENNIAL$ WILL CHANGE THE FACE OF PHILANTHROPY, FOREVER!

THE CURRENT $TATE OF PHILANTHROPY

T-1: PHILANTHROPY $$ FROM WHOM TO WHOM 1973+2013

(Info from Chronicle of Philanthropy/Giving USA)

1973

2013

’73 vs ’13

TOTAL FUNDS

$25.59 B

$335.17 B

1,209.80%

From Individuals

80.2%

71.8%

-8.4%

From Foundations

7.8%

14.6%

6.8%

From Corps

4.1%

5.3%

1.2%

From Charitable Bequests

7.8%

8.2%

0.4%

To Religion

41.1%

31.5%

-9.6%

To Education

13.0%

15.5%

2.5%

To Health

12.1%

9.5%

-2.6%

To Human Services

12.0%

12.4%

0.4%

To Arts & Culture

4.9%

5.0%

0.1%

To Foundations

10.7%

To Public/Soc Benefit

7.1%

To Environmentalism

2.9%

Since 1973 the face of philanthropy has changed drastically. 1973 registered $25.59 B in donations vs $335.17 B in 2013 with an increase of 1,210%. (GDP by comparison was $1.43 T in 1973 vs $16.77 T in 2013 with an increase of 1,073%. This difference means that philanthropy’s annualized growth rate was 2.74% greater than was GDP’s growth rate from 1973 to 2013.) Table 1 reveals a number of very important facts regarding philanthropy.

  • While the primary SOURCE/DONOR of philanthropy funds continues overwhelmingly to be Individuals (being almost 72% of donors in 2013) that source has lessened by approximately 8½% over the last 50 yrs. Furthermore, the % given by Foundations has increased by almost 7%. (Funds from Corps have increased by more than 1% and from Charitable Bequests by .4%.)

  • The face of the philanthropic RECIPIENT/DONEE has also changed substantially. “Back in da day,” Religion was the #1 RECIPIENT, receiving +41% of all $$. Today, Religion is still #1 but it accounts for almost 10% less than it did in 1973. Though $$ given to Health philanthropy have dropped by over 2½%±, $$ given to Education have increased by 2½%± and $$ given to Public/Soc Benefit services have increased by almost 3%. While there is no 1973 component, how can anybody ignore the amazing 10.7% of funds received by Foundations in 2015.

THE CURRENT STATE OF MILLENNIAL$ & PHILANTHROPY

There are many non-Millennials who think that philanthropy and Millennials are an oxymoron or that they are the antithesis of each other. At 1st blush this hideously SHALLOW ANALYSIS appears to be a BULLS-EYE. Upon further inspection however, a different truth emerges. The extraordinary case for philanthropy and religion is made in Table 1. How well does religion connect to the Millennial profile? Young adults tend to be single & churchless. OH, OH! In a recent study (See Pew, Ctr Forum on Religion, Feb ’10), 36% of Millennials claimed to be a “religious person” vs 52% of Gen Xers, 55% of Baby Boomers and 61% of the Silent Generation (69-86 yrs old). OUCH! Clearly, the relationship b/t philanthropy and Religion (as seen in T-1) does NOT bode well for Millennials being philanthropic since the #1 receipt of $$ is Religion! While Millennials are much less serious about religion than their parents were or are, guess what (?) they are very, very serious about donating to charities and volunteering. 75% of Millennials (age 20-35 with the majority of them having a bachelor’s degree and no kids) HAD DONATED $$ TO A CHARITY in 2011 and 63% had VOLUNTEERED. WOW! In short Millennials are much more serious about “giving back” than their parents/grandparents were. As for our image of Millennials & philanthropy, 84% (of them) say “making a difference” is more important than professional acclaim AND 92% believe biz should be measured by more than profits. Now, for all that “trash talk” about Millennials and their selfishness, their self-absorption, their narcissism…

MILLENNIALS WANT TO WORK FOR A COMPANY WITH A CAUSE

According to a 2014 Millennial Impact Report, during the interview process for a job more than 1/2 of Millennials said that a firm’s “cause involvement” helped to persuade them to accept the job. In fact, a firm’s involvement with cause work is the 3rd most important factor for Millennials when selecting a job (behind the firm’s specific purpose and work culture, respectively). Millennials like to donate both on their own and through their respective firms. 45% of Millennials age 25-30 and 57% 30-35 participated in a firm giving campaign. ONLY 13% of employed Millennials DID NOT give to charity in 2013. Not only did they give, but 12% gave more than $1000 while 28% gave $100$500 and another 19% gave $50$100. WOW!

PHILANTHROPY AND SOCIAL MEDIA

Since Millennials and social media are hand in hand, non-profits MUST have a social media presence to court potential donors. According to a 2013 study, (2013 Millennial Impact Report) 75% of Millennials have shared philanthropic content on social media. 51% of them followed at least 1 charity (or non-profit) on social media, and 46% have donated b/c of it. Millennials are passionate about what they do and want their contributions to make a difference. 60% of them like it when non-profits share stories about successful projects or people they have helped. As more and more Millennials are accessing social media from their smartphones (83% own smartphones) non-profits must make sure they have a clear, mobile friendly website. (Donating via a smartphone/mobile website ranked 3rd in preferred donation media, behind donating online and in-person, respectively.)

PHILANTHROPY FROM A “SOCIAL IMPACT” SUCCESS PERSPECTIVE

Among the characteristics that Millennials possess is impatience. It may well be related to their tech savviness. After all, technology is supposed to deliver instant results, NO? At the end of the day, Millennials want it ALL and want it RIGHT NOW! What a bunch of #@&%! Once upon a time, donors gave b/c they felt obligated and recipient charities/philanthropies packaged their gratitude so that donors felt that both the obligation were fulfilled & that donors received the necessary warm fuzzies. Millennials are 80M± young adults. They’re our biggest generation, ever. They’re reshaping America, its culture, its economy and its philanthropy. Today, they demand that philanthropic efforts $ucceed in the most effective and efficient manner, possible. They want a measurable social impact/ a real return on their social investment. Millennials in particular want more than that “feel good” payoff. They want reasonable results and a constantly improving input/output ratio! Cause investment AND social impact are the words of today. Millennials are the donor class of the future and their wants and needs MUST be satisfied! (For “social impact” info see “Philanthropy” 5/23/15 The Economist & “Catholic Trust..” by Sreeharshama, NYT 5/21/15)

WILL MILLENNIALS B/C OF THEIR IMPATIENCE, B/C OF THEIR DEMANDS, B/C OF THEIR EDUCATION, B/C OF THEIR DESIRE FOR SUCCESS AND B/C OF THEIR FOCUS ON MEASURABLE INPUTS AND OUTPUTS BE THE BEST PHILANTROPISTS, EVER? WANNABET?

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About bernacmd

For over 24 years, University of Detroit Mercy Marketing Professor Michael Bernacchi, Ph.D., J.D, has produced "uNDER tHE mIKE-rOSCOPE", a newsletter discussing current "marketing and advertising¹s bends, trends & ends." A well-know fixture in Detroit and national media, UDM's marketing guru has made several appearances on CNN's "Talk Back Live," the Voice of America worldwide radio network (VOA), ABC, CBS, NBC, MSNBC and on the pages of Sports Illustrated, Time, TV Guide, the New York Times, USA Today, the Wall Street Journal and the Washington Post, to name a few. At University of Detroit Mercy, he has taught courses in Marketing Management, Consumer Behavior, Marketing Communications, Research and Corporate Social Responsibility and Sports and Entertainment Marketing. Michael Bernacchi can be reached at 313-993-1116 or bernacmd@udmercy.edu. Please appropriately attribute the following for their work on uNDER tHE mIKE-rOSCOPE: Yen Ju Lee Robert Rouse Vidhyasagar Natarajan Eric Baumgardner & Ian Young
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