In our latest post, we chat to Kate Averett Anderson, Research and Publications Lead for the Blackbaud Institute, about the Institute’s fascinating Gen Z at the Table report. The report delves into the behaviour of Gen Z to help fundraisers engage with them and build meaningful, lasting relationships.
1. Can you tell us about your research with Gen Z? What were the main things you learned?
Gen Z is a fascinating demographic – with a global perspective, deeply held values around social justice and the environment, and the status of being true digital natives. However, it is also the group that fundraisers probably know the least about. We conducted two parallel surveys in partnership with Edge Research: one among Gen Z adults (born 1997–2005) to better understand their attitudes, values, behaviours and role in shaping philanthropy today; and one among nonprofit professionals, to learn more about their successes and challenges with engaging Gen Z.
The bottom line is that Gen Z is generous! 84% of the surveyed participants supported causes that they care about. We analysed not just givers but supporters who give their time and energy through advocacy, volunteering and promotion. While 59% of Gen Zers say they donate in some way, only around one-third of those say they donate directly to a charity or organisation. This should be seen as an opportunity for fundraisers as giving by this group will certainly grow over time. For instance, one-third of Gen Z donors say they expect to increase their giving in the coming year.
Key giving channels for Gen Z include opportunities that fit in with the flow of their daily lives, like retail checkout donations and cause-related retail purchases. Unsurprisingly, Gen Z is also motivated to give by opportunities for engagement and belonging, like events and social media. There’s a running thread of Gen Zers wanting to be a part of larger movements and to see organisations, charities and for-profit companies taking steps towards transparency and authentic social responsibility.
Making a difference in the workforce is also a strong positive with Gen Z, in both the for-profit and nonprofit sectors. Out of those whose employers offered it, 89% of Gen Z workers participated in workplace giving and 92% participated in workplace volunteering. In the nonprofit sector, both Gen Z workers and their elders (sorry to use the term!) believed that this generation is making the biggest impact by their service as staff.
Ultimately, Gen Z is showing up in the philanthropic space more than many fundraisers may realise, just in places they may not be looking.
2. What surprised you most about the findings?
This was a unique study as we were able to compare Gen Z’s responses on their charitable behaviours with the preconceived notions of fundraisers. Huge percentages of professionals say they don’t engage successfully with Gen Z as influencers, don’t show up in Gen Z places or spaces, and don’t effectively communicate how or why Gen Z should offer their support. These gaps in knowledge were opportunities for us to gain some surprising insights directly from Gen Zers themselves.
We found that the most surprising elements were also the areas where nonprofit professionals were often missing the mark. For example, Gen Zers are much more likely to plan their giving – 28% say that they budget for giving each year, with 35% knowing which organisations they plan to give to, while only 3% of nonprofit professionals believed that Gen Zers tended to be regular supporters.
Gen Z supporters were also drawn towards taking active roles on junior boards, with 31% saying they would like to sit on a board or advisory committee. One participant said, “I would think that every organisation at least wants younger people to get more involved, or if younger people are their target audience, they should have a good presence of younger people on a board or involved in some sense.” Meanwhile only 23% of the nonprofit professionals surveyed reported having a junior board. Out of those who did, 84% said that they would rate their junior board/young professionals’ group as successful in cultivating the next generation of leaders. Gen Zers are phenomenal leaders in digital advocacy and community building. Fundraisers have a lot to learn from how this generation built connections online during the height of the COVID-19 pandemic and how they are now embracing opportunities to establish community.
Finally, what may not be surprising, but is encouraging, is the role that hope plays in Gen Z’s generosity. The hope that things would get better was the leading feeling that supporters reported during their last donation. There is a belief in the innate power of generosity there and an energising force that fundraisers can get behind.
3. What do the learnings mean for how charities should build relationships with Gen Z supporters?
Understandably, many fundraisers have been focusing on the short term and weathering the unpredictability of the last few years. Ongoing research is showing a change in the tide and an optimism across the sector. Now is the time to take a long-range view in fundraising strategies. Stewarding Gen Z is a necessary part of safeguarding for the future.
So, how do you do that? If charities come away from the study with anything, we want them to remember these key elements: transparency, convenience, community and values. Across the board, supporters are motivated by trust in the organisation, strong belief in the organisation’s mission, and assurance that the organisation gives back to the community. When illustrating impact, strike a balance between stories and statistics – nearly 70% say that impact reporting is likely to motivate increased giving. They want to see evidence of your organisation putting your values in action. This applies to your corporate partnerships, communications, impact reporting and the way that you show up in Gen Z spaces (both digitally and in person).
The best thing that your organisation can do is to meet Gen Zers where they are. Focus on the channels where they’re active (but do so with authenticity), make spontaneous and recurring giving easy with frictionless online donations and be patient in your approach. Gen Zers are different, but not that different from the generations before them at this stage of their lives. The hope is that this report can pull back the curtain on areas where you can invest now to see dividends as Gen Z continues to come of age.
4. Can you tell us about your plans for Gen Z research in the UK and internationally?
Building on our Gen Z at the Table research in the US, we’re surveying audiences in Canada, the UK and Ireland, Australia and New Zealand. These research reports, which will be published in late October, will share the latest donor behaviour trends in the respective regions.
The international project is focusing on understanding behaviours and motivations across four key generations: Boomers; Gen X; Millennials; and Gen Z. The focus on these four unique demographics allows us to analyse the similarities and differences between them, helping fundraisers shape their strategies and build meaningful relationships by listening to the preferences of each generation.
Based on the results, we can also make meaningful global comparisons across regions to create a comprehensive view of the current donor behaviour landscape and share Gen Z-specific comparisons to the research conducted in the US. This international project is being conducted in collaboration with Nepa.
Read the Gen Z at the Table report.