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A recently completed survey
commissioned by Convio
provides interesting insights
into the marketing preferences
of multiple generations
of donors. Released in March
2010, “The Next Generation
of American Giving” focuses
on the fund-raising and communication
means that may
be most effective with Gen Y,
Gen X, Baby Boomers, and
the mature market composed
of the 65-plus generations.
The complete study may be
accessed at www.convio.com/nextgen.
The study begins with the premise that many fund-raising
efforts are now optimized for those born before
1945, now age 65 and older. The authors then address
the question of how charities should best attract the
next generation(s) of donors without losing gift revenue
from those now over 65.
The report suggests nonprofits continue with established
fund-raising efforts with the mature 65-and-over
market. For Baby Boomers and younger donors, the
survey results point toward augmenting traditional
acquisition efforts with marketing channels like
Internet-based fund-raising efforts.
The survey reports on the response of over 1,500
donors who participated in an online survey and three
focus groups held in late 2009 and early 2010. While
the primary purpose of the study was to reveal strategies
and techniques for engaging future generations of
donors, it also contains a number of insights about older
donors. For example, those born prior to 1945 are most
likely to give (79%), followed by Boomers (67%). Gen X
and Gen Y donors are almost equally philanthropic, at
58% and 56% respectively. The study reveals that direct
mail is the preferred primary marketing channel for
soliciting and collecting regular contributions from the
65+ age group. Total annual giving and the number of
charities supported also increase with age.
Those in the 65-plus age bracket are significantly
more likely to give to charity. These “mature” donors also
support more charities and give at the highest average
levels. According to survey results, most members of
older generations prefer to make their charitable contributions
by sending a check through the mail. Giving
through the mail is also widespread for Boomers and
Gen X, but significantly less so for Gen Y.
Contributions made during the payment process at
retailers (“check-out” contributions) are used widely by
all generations. Only 2% of those 65 and older report
making contributions on a social networking site or
by texting, while 13 to 14% of Gen X and Gen Y members
report text contributions. Giving via Web sites is
most attractive to Gen X and Boomers and less so for
both Gen Y and those 65 and older. Mature donors are
the most likely to respond to memorial or tribute gift
requests and phone solicitations.
After a gift is made, the preferred channel for receiving information
from the donor’s top charity is direct mail for every generation except
Gen Y, for whom the charity’s Web site or e-mails are preferable. The
most effective or appropriate solicitation channels for all generations
include being asked by a friend, being mailed a letter from a known charity,
and receiving e-mail from a known charity.
The overall take-away from Convio’s study is that fund raising is a
multi-channel proposition and that the effectiveness of different communication
channels may vary by age group. From a planned and major
gift standpoint, it is essential to focus on the communication and solicitation
methods that have proven most effective for the Boomer and 65+
donor population, while adding additional channels that will allow more
donors both younger and older to receive and respond to the message in
an appropriate manner. See page 2 for a chart illustrating the Sharpe Gift
Planning Matrix©, a tool that may prove helpful in organizing a donor
constituency. Matching correct communications and planning tools to each
segment of the Matrix can be a key to success today and in future years.
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