Gen Z Donors: Decoding the Next Generation of Philanthropists

Gen Z is shaking up philanthropy with their digital-first approach and passion for social causes. Here's what you need to know:

• 84% of Gen Z supports charitable causes
• They donate an average of 11.4 times per year
• Top priorities: social justice and climate change
• 70% want to see the impact of their donations
• 76% give online, 13% by text

Despite economic challenges, Gen Z is all in on giving back. They're not just donating - they're volunteering and advocating too.

For nonprofits, understanding Gen Z is crucial. They're diverse, educated, and 2.5 times more likely to increase their donations year-over-year.

Key takeaways for reaching Gen Z donors:

1. Go mobile: Make donating easy on smartphones
2. Show impact: Use visuals to demonstrate results
3. Get social: Engage on platforms like TikTok and Instagram
4. Offer choices: Provide multiple ways to give
5. Make it personal: Tailor your approach to individual donors

As Gen Z enters the workforce, their impact on philanthropy will only grow. Nonprofits need to adapt to their giving style or risk missing out on this rising force in charitable giving.

Related video from YouTube

How We Did Our Research

We combined several methods to understand Gen Z's giving habits.

Studies and Surveys Used

We looked at data from:

• Abacus Cooperative's 2022 report on donation frequency
• Classy's Why America Gives study on next-gen donors
• Giving USA's Giving by Generation special report

These gave us insights into how, why, and where Gen Z donates.

Who We Studied

We focused on people born between 1997 and 2012 - that's Gen Z. The US Census Bureau says they make up about 20% of the US population (68.3 million people in 2023).

Our sample included:

How We Collected Data

We used four main methods:

1. Online Surveys

We ran big online surveys to get numbers on Gen Z's giving habits.

2. In-Depth Interviews

We talked to Gen Z donors, nonprofit leaders, and giving experts to get the story behind the numbers.

3. Social Media Analysis

We looked at how Gen Z talks about charities and giving on social media.

4. Case Studies

We dug into campaigns that Gen Z loved, like the Justice and Equality Fund.

What We Learned About Gen Z Giving

Our research revealed some eye-opening facts about Gen Z's giving habits. Here's the scoop:

Gen Z's Giving Habits

Gen Z isn't just talking the talk - they're walking the walk when it comes to giving:

• They donate 11.4 times a year on average - more than any other generation.
• 59% of Gen Z have given money to charity.
• A third of Gen Z donors plan to up their giving next year.

Why They Give

For Gen Z, it's all about making a difference:

• 70% are motivated by seeing the impact of their donations.
• They're big on social justice, climate change, and human services.
• Trust and belief in the organization's mission are deal-breakers.

How They Like to Give

No surprises here - Gen Z loves digital:

Only 19% give directly to organizations, and just 11% make monthly donations.

Gen Z at Work

Gen Z is all in when it comes to workplace giving:

• 89% are into workplace giving programs.
• 92% support workplace volunteering.
• 49% of Gen Z public media supporters want to serve on nonprofit boards.

"Gen Zers are eager to engage as volunteers and as promoters of your organization and cause." - Blackbaud Institute Report

Bottom line? Gen Z is ready to give, but they want to do it their way - digitally, with impact, and aligned with their values.

Gen Z Views on Child Sponsorship

Gen Z's take on child sponsorship? It's complicated. Their giving habits don't quite fit the traditional mold.

Here's the deal:

84% of Gen Z supports charities, and 59% donate money. But only 19% give directly to organizations, and just 11% make monthly donations. This doesn't bode well for typical child sponsorship programs that rely on regular, direct contributions.

So what drives Gen Z to give?

For child sponsorship programs to win over Gen Z, they need to nail these factors. Show the impact. Build trust. Align with their values.

Gen Z cares about social justice and global issues. That's a good fit for child sponsorship. But these programs might need a makeover to really click with Gen Z.

How can child sponsorship programs appeal to Gen Z?

• Show immediate impact
• Offer flexible giving options
• Create opportunities for direct engagement
• Use social media to share stories and results
• Be transparent about where the money goes

Here's an interesting twist: Gen Z's giving habits might change as they get richer. With $68 trillion expected to transfer to Gen Z and millennials in the next 20 years, they might warm up to long-term giving programs.

"Gen Zers are eager to engage as volunteers and as promoters of your organization and cause." - Blackbaud Institute

The takeaway? Child sponsorship programs might want to think beyond just asking for money. Offer Gen Z ways to get involved, like advocacy or volunteering. It could be the key to winning their support.

Difficulties in Reaching Gen Z Donors

Nonprofits are struggling to connect with Gen Z donors. Here's why:

Money's Tight

Gen Z's wallet is thin:

• 48% say they're short on cash to give
• 46% need financial help from mom and dad
• 52% feel underpaid
• 56% lack a 3-month emergency fund

Joe Cruz, 26, sums it up:

"I'm back at my dad's place and juggling three jobs to pay off debt."

Trust? What Trust?

Gen Z's skeptical:

• Only 25% trust the government
• They're 1.6x more likely to donate after a crisis
• 43% prefer personal causes on GoFundMe

Megan Malloy from Blue State says:

"Young folks aren't big on institutions right now."

Giving Their Way

Gen Z's donation style is different:

Only 19% give straight to organizations. That's a problem for nonprofits used to regular donations.

Missed Connections

Nonprofits are out of touch:

• 54% of Gen Z spend 4+ hours daily on social media
• But only 23% donate through it
• 52% use it to check out organizations

Time is Money

Gen Z prefers volunteering:

• 54% volunteered recently (more than any other generation)
• 33% support causes by volunteering
• 23% say they're too busy to volunteer for causes they like

Nonprofits need to shake things up to get Gen Z on board.

sbb-itb-a630d3d

How Nonprofits Can Reach Gen Z

Nonprofits need to step up their game to connect with Gen Z donors. Here's the deal:

Social Media and Apps: Where Gen Z Lives

Gen Z is glued to their screens. To get their attention:

• Go where they are: TikTok, Instagram, YouTube
• Keep it short and snappy
• Ride the wave of trends and memes

Take Share the Meal. They're killing it on TikTok, using viral trends to fight hunger.

Show Them the Money (Trail)

Gen Z isn't messing around. They want receipts. To earn their trust:

• Spell out your impact
• Get real with stories and pics
• Break it down: where every dollar goes

Charity:Water nails this. They show faces of people getting clean water and explain how donations make it happen.

Hit 'Em Where It Matters

Gen Z is all about social justice and saving the planet. To click with them:

• Link your cause to what they care about
• Give them ways to get hands-on
• Create spaces for them to connect, online and IRL

Bottom line: Gen Z wants to make a difference. Show them how you're doing it, make it easy for them to join in, and you'll win them over.

What's Next for Gen Z Giving

Gen Z is changing the game in philanthropy. As they start earning, their influence on giving is set to explode. Here's the scoop:

Digital donations dominate: Gen Z loves giving online. 62% of them donated through digital channels in 2022. Expect this trend to keep growing.

Show me the impact: These young donors want proof. 70% say they'd give more if they knew the results. Nonprofits, take note: transparency is key.

Direct giving is hot: Gen Z isn't waiting for big charities. 43% have given to personal causes on platforms like GoFundMe. This could force nonprofits to rethink their approach.

Workplace giving takes off: Gen Z is all about corporate giving. With 89% joining in, companies will likely offer more of these programs.

Impulse giving is in: 42% of Gen Z donors give on a whim. Get ready for more quick-hit campaigns and rapid response fundraising.

Causes matter: Social justice and climate change are Gen Z's hot topics. Nonprofits in these areas might see a boost.

Carrie Cobb from Blackbaud sums it up:

"Gen Zers are generous and are already taking an active role in philanthropy as donors, advocates, volunteers, and even as employees at nonprofit organizations."

The future of giving? Young, digital, and impact-driven. Nonprofits that get on board with Gen Z's style will tap into this rising force in philanthropy.

Changes for Child Sponsorship Programs

Child sponsorship programs need to catch up with Gen Z's digital world. Here's how:

Go mobile: 38% of donors use phones or tablets to give. Child sponsorship apps should let Gen Z:

• See updates on their child
• Donate quickly
• Message their child

Use QR codes: 47% of Gen Z donors have used QR codes to give. Programs can put these on flyers or at events.

Text-to-give: This jumped from 1% in 2016 to 7% in 2022. It's perfect for quick, spur-of-the-moment donations.

Show impact: Gen Z wants to see results. Use tech to show:

• Before/after photos
• Updates on community projects
• Videos from sponsored kids

Protect privacy: Use tech like Outgiven's Identity Mask© to hide personal info until someone sponsors.

Build community: Gen Z loves to connect. Programs can:

• Set up safe messaging between sponsors and kids
• Create sponsor groups on social media
• Host online events

Simplify management: Use platforms like REACH to handle money, track sponsorships, and give sponsors DIY options.

Here's what programs should add:

Wrap-Up

Gen Z is changing how we think about giving. Here's what we've found:

Gen Z donates more often than other generations, averaging 5.3 donations per year. They're tech-savvy, with 76% giving online and 95% owning smartphones.

These young donors care about results. Nearly 70% say knowing the impact of their donations motivates them to give more. They're also big on workplace giving and volunteering, with almost 90% participating in these programs.

Social causes drive Gen Z. Climate change and disaster relief are top priorities for many.

Want to connect with Gen Z donors? Here's how:

1. Make it mobile

Gen Z lives on their phones. Your donation process should too.

2. Show your work

Be clear about where donations go. Use:

• Maps showing project locations
• Before/after photos
• Videos of people you've helped

3. Get social

Gen Z loves social media. Use it to:

• Tell stories about your impact
• Run fundraising campaigns
• Talk with supporters

4. Mix up giving options

Gen Z likes choices. Think about:

• Accepting cryptocurrency
• Allowing stock donations
• Setting up giving circles

5. Make it personal

Gen Z values individuality. Try:

• Personal thank-you messages
• Custom impact reports
• Targeted campaign emails

FAQs

What percentage of Gen Z donates to charity?

59% of Gen Z gives to charity. That's part of a bigger picture where 84% of Gen Z supports good causes somehow. Pretty impressive for the youngest adult generation, right?

What are the giving trends for Gen Z?

Gen Z likes to keep things easy and spontaneous when it comes to giving. Here's the scoop:

Gen Z does things differently than their parents and grandparents. They give more often but in ways that fit their lifestyle. Think donating through Instagram or adding a buck to their coffee order.

"In 2022, Gen Z adults averaged 5.3 donations. Millennials? 4.8. Gen X? 4.7." - Abacus Cooperative

So Gen Z is all in on giving, even if they can't drop huge amounts yet. They're just getting started in their careers, after all.

Related posts

• 10 Nonprofit Fundraising Strategies to Maximize Impact in 2024
• Child Sponsorship 2024 Trends
• The Future of Nonprofit Sponsorships: Trends and Predictions
• The Future of Fundraising: 5 Trends Reshaping Nonprofit Donor Relationships in 2025