The New Donor Movement

In 2011, the largest source of charitable giving came from individuals at $217.79 billion, or 73% of total giving; followed by foundations ($41.67 billion/14%), bequests ($24.41 billion/8%), and corporations ($14.55 billion/5%).

                                                                                   

Online Fundraising Growth Rates		Retail E-Commerce Growth Rates
2006 – 27 percent		2006 – 23.5 percent
2007 – 26 percent		2007 – 20.8 percent
2008 – 14 percent		2008 – 18.6 percent
2009 – 14 percent		2009 – 17.2 percent
2010 – 20 percent		2010 – 16.0 percent
2011 – 16 percent		2011 – 15.0 percent

Of the people who gave to charity in 2011, 1 in 10 did so online. Analysts say it could be a much bigger percentage. Increased access to online or electronic giving can support the fact that Americans do not know about all of the various options they have to support their causes. According to an American Express study, 28% of people who gave offline said they couldn't locate a donation website, didn't know how they could make a gift online, or didn't think of it.

The 80 million Americans now in there 20’s have shown tremendous interest in charities and promoting the common good. But many charity groups struggle to figure out how to attract them to their specific cause. Today's Millennials are transforming communities, relieving suffering and pursuing social change in a way that may run counter to the traditional ways of organizing, but it's because they are wired to work differently: collaboratively, transparently, interactively, and entrepreneurially, to affect positive change in their local communities and around the world.

This generation has grown up with a new way of learning. Asking questions in a non-linear fashion and then finding the answers, all while connecting with their peers, friends and colleagues to financially support and make change happen. When a cause message is linked to a brand in an authentic and relevant way, it can gain the attention and respect of young people today. Furthermore:

A shared passion for a cause can foster a strong personal relationship between a brand and its target consumer.

Millennials are ready to reward or punish a company depending on its commitment to social and/or environmental causes.

Cause marketing should be considered as a loyalty strategy for engaging Millennials.

Technology has made this participation easier than for past generations. For Millennials, there is no life before computers, mobile phones or the Internet. As a by product of being reared in a culture of speed, technology and choice, they are savvy early adopters who quickly master whatever new programs come to the market. Growing up with the Internet has exposed Millennials to an entire Global Community and increased their awareness of news and world events.