33 posts categorized "Millennials"

[Review] 'Generation Impact: How Next Gen Donors Are Revolutionizing Giving'

November 21, 2017

A new generation of donors is expected to inherit an estimated $59 trillion dollars by 2061 and to allocate almost half that sum to charitable causes. In addition to this unprecedented transfer of wealth, there are also a growing number of next-generation donors who have earned their own fortunes at a relatively young age and are currently, or will soon be, engaged in philanthropy in a significant way.  

Gen-impact-book-1In Generation Impact: How Next Gen Donors Are Revolutionizing Giving, authors Sharna Goldseker and Michael Moody set out to illuminate the "collective mindset" of this emerging cohort of Gen X and millennial philanthropists, who, as a result of almost unprecedented wealth creation and concentration, are ushering in a "golden age of giving" marked not only by significantly more financial resources available for charitable causes than in the past but by dramatic shifts in the traditional norms of philanthropy. These shifts are the impetus for Goldseker and Moody's book; through interviews and surveys with hundreds of younger philanthropists, as well as first-person accounts from thirteen next-gen donors, they aim to help the social sector understand who these next-generation donors are, how they're giving, and how they're likely to approach change-making efforts in the years to come.  

The authors call these next-gen donors "Generation Impact" because they're hyper-focused on seeing the needle actually move with respect to the various issues they are passionate about. Many want to understand an organization's theory of change; others are eager to go on site visits to see the impact created by their support, while still others want to review hard data that shows the success (or lack thereof) of a program or organization. This focus on results also goes hand-in-hand with a desire to not just fund organizations, but to invest their own time and talent in causes that are important to them. That can take many forms, from volunteering with an organization before becoming engaged as a donor, to connecting with the beneficiaries of a program that they're thinking about funding, to lending their skills and expertise to organizations in addition to (or instead of) writing a check. "Experiencing it with your own hands and eyes is a must," one donor tells Goldseker and Moody.  

Many of these next-gen donors also are beginning their engagement with philanthropy at a relatively young age and will continue giving throughout their lives; as a result, they strive to bring their full selves to their philanthropic endeavors instead of merely viewing charitable giving as an add-on to their professional and personal lives. As one donor puts it: "Philanthropy is not just something that you do; it is very much a part of who you are."  

And while they continue to give through traditional vehicles like family foundations and donor-advised funds at community foundations, next-gen donors increasingly are turning to less traditional vehicles such as crowdfunding platforms and impact investments, are supporting social enterprises and hybrid organizations that blur the lines between for- and nonprofit, and are often focused on working with others to effect change. "They are hungry," write Goldseker and Moody, "for meaningful connections with peers in similar situations of philanthropic affluence so that they can connect personally, to learn and grow together and be more effective in their giving."

Given all that, it's surprising the authors make a point of mentioning the "paucity of other sources of learning in the philanthropic field" for next-gen donors, a lack that leads them, in their words, to seek out their peers for strategic advice. Many infrastructure groups, in fact, including the Jewish Teen Funders Network, Emerging Practitioners in Philanthropy, and the Council on Michigan Foundations, have resources and programs geared to providing next-gen donors with a "roadmap" for their philanthropic journey. Here at Foundation Center, we recently developed YouthGiving.org — a platform designed to connect, inspire, and inform youth grantmaking, enabling younger donors to not only find and connect with peers, but to learn about other next-gen donors' experiences, failures, successes, and collective impact.

More importantly, what do these shifts mean for the social sector? The authors do a great job of taking the themes surfaced by their research and offering practical advice around what those themes are likely to mean for nonprofits, other philanthropists, and next-gen donors themselves. Younger donors may be rethinking the way Americans give, but, as Goldseker and Moody argue, they're also revolutionaries who respect tradition and will continue to support many of the same causes funded by older generations: indeed, next-gen donors "are earnestly and eagerly searching for ways to honor their elders' legacies and adapt their giving to have maximum impact."  

This should be comforting news to nonprofits that worry their donor support will dry up as younger philanthropists become a bigger force in the field. Still, Goldseker and Moody caution that nonprofits hoping to benefit from the intergenerational transfer of wealth will need to adapt and do a better job of showing the impact of their younger donors' gifts. Other key takeaways for nonprofits include the need to focus on developing meaningful relationships with next-gen donors by aligning with their values, providing them with personal experience of the programs they support, and encouraging them to donate their time and professional skills in addition to (or even instead of) financial resources.

Key takeaways for family foundations looking to engage the next generation include the need to ensure that governance structures give real voice to younger family members, to embrace transparency and use generational differences to their advantage, and to provide younger family members with opportunities to connect with, learn from, and collaborate with their peers in philanthropy. The authors also stress that next-gen donors should respect the boundary between being "hands on" and micromanaging or asking for too much from organizations that are looking for help and support. Or, as they put it: "They will need to keep the inherent power divide in mind, to check in with their partners on the other side of the funding table, and, above all, to listen to what people and organizations really need."  

Goldseker and Moody are incredibly optimistic about next-gen donors who are coming into the field and their potential to meaningfully move the needle on many of our most pressing social problems. Indeed, they believe that impact created by next-gen donors will be greater than the impact created by earlier generations of philanthropists — not only because they are likely to have more resources at their disposal, but because they're more entrepreneurial, more focused on concrete results, and more invested in using new tools to produce those results and effect meaningful, lasting change. It's up to nonprofits and other philanthropists, they write, to adapt to and embrace these new attitudes and behaviors. And it's up to next-gen donors to use their significant privilege and resources strategically, while listening respectfully, to maximize their impact.

Erin Nylen-Wysocki is manager of stakeholder engagement at Foundation Center. For more great reviews, visit the Off the Shelf section in PND.

 

Spoiler Alert: It’s Not All About Fundraising

November 07, 2017

Spoiler-alertAs a nonprofit leader, you'll be delighted to learn that new research affirms what most of us knew: Americans are generous. In fact, this year’s edition of Giving USA found that charitable giving by individuals in the U.S. was up nearly 4 percent in 2016, hitting an all-time high.

But as The Chronicle of Philanthropy notes in How America Gives, a recently released analysis of American giving patterns, these gifts are coming from fewer people. In 2015, the Chronicle notes,

only 24 percent of taxpayers reported a charitable gift....That’s down from 2000 to 2006, years when that figure routinely reached 30 or 31 percent....

While the Chronicle suggests the drop off could be due to a decrease in the number of Americans itemizing deductions on their tax returns, they also point to other possibilities: the lingering after effects of the Great Recession, an increase in the number of struggling middle-class families, more competition for fewer dollars.

And then there's the millennial factor. The generation born between 1980 and 2000 is the largest in American history, and as the Chronicle notes, "it's well known that [millennials] aren't embracing traditional ideas of giving."

It's a trend that's reflected in our own research. Indeed, Phase 2 of our 2017 Millennial Impact Report found that the millennial generation doesn't rank giving — or volunteering — as all that meaningful in terms of effecting change. In the study, survey respondents were asked to rank their typical cause/social issue-related behaviors in order of how influential they believed each to be. Out of ten actions, volunteering for a cause or organization ranked sixth while giving ranked eighth — well behind other actions such as signing a petition, attending a march or rally, voting, or taking to social media to share one's views.

In other words, when it comes to creating change, millennials seem to favor what we call activist-type behaviors to more traditional forms of cause engagement (like donating and volunteering). And it isn't just millennials: NPR noted earlier this year that the election of Donald Trump ignited grassroots activism — on both the left and right — at a level "never seen before."

Whether politically motivated or not, a clear trend is emerging: People across the country are looking for more effective ways to bring about the kind of change they'd like to see, and the actions they're taking don't necessarily start with (or sometimes even include) giving or volunteering.

For nonprofits that rely on donations from individuals, this poses a problem. While it's good that people are passionate and want to get involved with issues they care deeply about, cash, for nonprofit organizations, still matters — and often is the most important factor in an organization's ability to do its work and advance its mission.

What's a nonprofit leader to do? And what can nonprofit organizations do to address this shift in behavior?

Here are three things to keep in mind as you look to activate a new generation of supporters:

1. Make it about the issue. In my previous post, I looked at some of the things nonprofits should be doing to turn one-time donors into loyal and engaged supporters. And one of those things is articulating how a small action by a supporter can connect with other small actions to create bigger impact with respect to an issue or cause.

The same is true when you are looking to cultivate and/or strengthen relationships with your existing supporters. People give and get involved with an issue through an organization, not because of an organization. Think about it: I'm more likely to become involved with Pencils of Promise not because someone told me that PoP was doing great work and its focus is on education but because I’m passionate about quality education for all kids and PoP does great work in that space.

2. Don't just run a campaign, build a movement. It's easy for nonprofit development professional and fundraisers to get hung up in the wash-rinse-repeat campaign cycle. At the start of the year, your fiscal calendar is already blocked out with various appeals, volunteer drives, and fundraising events — so many, in fact, that you barely have to time to think. But how are they connected? What are you doing between campaigns to maintain the engagement level of your supporters and continuously deepen their connection to your issue?

To truly make a difference, you need to activate your supporters and followers at every level of engagement, moving them along a continuum from having a more-than-passing interest in your issue to actually standing up and taking action on behalf of it. Campaigns have a role to play in that, but every campaign (and all your communications) should be designed to deepen an individual's engagement to the point where she feels herself to be an actual member of a movement and is willing to introduce others to the cause.

3. Update your organization's structure. Because of the resource constraints most nonprofits have to deal with, activism and advocacy often end up taking a back seat to core operating functions. If you're going to build a movement predicated on greater levels of supporter engagement, however, you're going to need a different kind of organizational structure.

Which means you should align that structure in ways that engage and support your audience today, rather than next month, next year, or at some happy point in the future. A good place to start is adding a director of advocacy or constituent engagement to your leadership team and giving them a set of responsibilities focused on movement building and donor cultivation, not just fundraising.

In this new era, it's vital that nonprofit leaders change their thinking to more closely align with where and how a rising generation of potential supporters wants to be involved with the issues and causes that matter to them. In other words, if you want to create lasting change, don't focus on your organization; focus on connecting people to your issue through your organization.

Headshot_derrick_feldmann_2015Derrick Feldmann is the president of Achieve, a research and marketing agency for causes, and the author of Social Movements for Good: How Companies and Causes Create Viral Change, available from Amazon and Barnes & Noble.

Six Ways to Connect People to Your Cause Through Social Media

February 16, 2017

Social-media-300x200A lot has changed since the National Park Foundation shared its first Facebook post in 2008.

Before then, landing an interview on a national news program or with a daily newspaper was enough to reach the masses.

Now, traditional media shares the spotlight with social media and other innovative forms of communication. Facebook, Twitter, Instagram, Tumblr, and the like have opened up a new world of possibilities for the sharing of content. And while NPF continues to use traditional advertising, public relations, content marketing, and events to engage current supporters and reach new audiences, social media plays an increasingly important role in our marketing and communications mix.

Here are some of the social media tactics we use to reach people of different ages and backgrounds and inspire them to care about our cause:

1. Create a movement with a call to action that inspires social sharing. In anticipation of the National Park Service Centennial celebration in 2016, we launched Find Your Park/Encuentra Tu Parque in 2015, a bilingual public engagement campaign designed to reach millennial audiences through traditional and new media platforms. The groundswell created by the campaign inspired a movement, with more than one in three millennials becoming familiar with #FindYourPark and #EncuentraTuParque through our strategic communications efforts, including print and Web media, public service announcements, live events, and donated advertising. But the campaign really took off on social media, as supporters of the national park system responded in huge numbers to our call to share their memories and tips for exploring these incredible places with those who had never experienced them. Indeed, over the course of the campaign, we registered more than 5.9 million engagements through our social media channels.

2. Partner with influencers, including celebrities. There's no doubt that the right celebrity ambassador can bring star power to your cause and get new eyeballs on your work. Our Find Your Park/Encuentra Tu Parque ambassadors have been fantastic partners in doing just that. From Mary Lambert performing a Facebook Live pop-up concert in front of Stonewall National Monument to Bill Nye hosting a modern-day telethon via Mashable's Facebook page in support of #GivingTuesday, our message is reaching more people in new and innovative ways. But don't discount the impact and importance of everyday influencers. Participants in our Find Your Park Expedition, for example, are social media personalities and bloggers who "bring" people along with them when they explore a national park by sharing their experiences online. We know that people are compelled to act by genuine, authentic narratives. While the channels through which we deliver those narratives may vary, curiosity about what our national parks represent and the urge to help preserve them for future generations transcends demographics and cultural differences.

Continue reading »

How to Attract and Retain Next-Gen Talent

December 22, 2016

Talent-magnet-600x400With an entire generation of senior nonprofit leaders about to retire, nonprofit managers have one thing on their minds: hiring and retaining next-generation talent. But according to Nonprofit HR's 2015 Nonprofit Employment Practices Survey, nonprofits are having hiring and retention issues due to a variety of factors, including uncompetitive salaries, an inability to provide sufficient career opportunities, and excessive workloads.

These hiring and retention challenges are why nonprofits need to focus their efforts on employee engagement. My company, Quantum Workplace, surveyed more than 440,000 employees from nearly 5,500 organizations through our 2016 Best Places to Work program and have published the findings in our Engaging Nonprofit Employees: Industry Report. Among other things, the report found that only 58 percent of nonprofit organizations are engaged — putting the nonprofit sector third from the bottom out of eighteen industries.

Is your nonprofit suffering from rotating-door syndrome when it comes to top talent? Does your organization have a strategy to attract talented newcomers and entice them to stay and grow their skills within your organization. Below are three proven ways to attract and retain millennial and Gen Z employees:

1. Emphasize diversity and inclusion. Young people are looking to make a positive impact on the lives of others, so it's no surprise they want to work for organizations that are seen to be fair, inclusive, and diverse. But even though nonprofit employees, in general, are a diverse group, many nonprofits still fall short when it comes to diversity policies, initiatives, and outreach.

With millennials and Gen Zs entering the workforce in huge numbers, this issue has more resonance than ever. Young people want to see organizations actually walk the talk that's embedded in their mission and value statements.

Besides, inclusion isn't just good for employees. McKinsey's 2015 report Why Diversity Matters found that companies in the top quartile for racial and ethnic diversity are 35 percent more likely to outperform the national industry median across multiple benchmarks and indicators. In other words, integrating diversity and inclusion into your organizational culture will enhance both employee satisfaction and your bottom line.

One way to demonstrate your commitment to diversity and inclusion is to encourage frequent one-on-one meetings between team leaders and team members and adopt an open-door policy that encourages employees to express their concerns about diversity-related issues when they arise. You can promote inclusion by giving the entire staff an opportunity to brainstorm together about ways to bring diversity into the organization. And you can give prospective employees a sense of your team's diversity initiatives by posting pictures on your website of group bonding and brainstorming activities and featuring quotes from current employees that capture their positive experiences with your organization's diversity and inclusion policies.

2. Be a trustworthy leader. Younger employees today are looking to leaders to model their values. Sadly, this is a bit of a problem in the nonprofit sector. Our Engaging Nonprofit Employees survey found that only 58 percent of nonprofit employees said they worked for an organization with a strong or somewhat strong ethical culture. At the same time, the survey data ranks trust in nonprofit leadership as the second most important driver of employment engagement.

You don't have to be a rocket scientist to understand that the disconnect between nonprofit employees' expectations and what they actually see in the workplace is undermining the attraction of nonprofit work for many millennials and Gen Zs.

A relatively easy thing you can do to fight this trend and instill more employee confidence in your organization's leaders and managers is to implement a 360 feedback system. Start by surveying members of the organization to understand what they need from their managers in order to perform at a high level. As managers process that feedback and modify aspects of their own behavior, you'll be surprised how quickly younger employees begin to accept that the people leading the organization have their best interests at heart.

Another common misconception about millennials and Gen Zs is that they are devoted to screens. However, the Gen Y and Gen Z Global Workplace Expectations Study found that 53 percent of Gen Zs prefer face-to-face communication for most workplace activities. Keep that in mind the next time you're getting ready to send an email or Slack message to a younger employee.

3. Accentuate the positive. Nonprofit employees want to be assured the future is bright — for themselves as well as the organization they've committed to. And as boomers start to retire in significant numbers, millennials and Gen Zs will be expected to use their skills to make an impact and lead the organization into that bright future.

You can enhance the attractiveness of your nonprofit as a great place for millennials and Gen Zs to wok by tapping into their optimism in your job descriptions. Provide specific examples of how your organization is living up to its mission and values and how the open position is all about making life better for others. Also be sure to list any continuing education opportunities your organization makes available to younger employees.

Remember, too, that many young employees aren't yet confident in their skills and so are unclear about what their future with an organization could be. Recognition software makes it easy to reward younger employees and let them know their work is respected and appreciated by their peers, which in turn builds their confidence and deepens their engagement with the organization and its mission.

So there you have it — three things any nonprofit can do to increase its attractiveness to millennial and Gen Z employees. We're the future, what are you waiting for?

Natalie_hackbarthIs your nonprofit doing something creative to attract and retain millennials and Gen Zs? Let us know in the comments section below!

Natalie Hackbarth is the inbound marketing manager at Quantum Workplace, a company dedicated to providing every organization with quality engagement tools.

Most Popular PhilanTopic Posts (July 2016)

August 06, 2016

Sort of like that great little farm stand that pulls you in every time you drive by, our roundup of the most popular posts here on PhilanTopic in July offers lots of delicious food for thought. So pour yourself a tall glass of iced tea or lemonade and dig in!

What did you read/watch/listen to in June that got your juices flowing? Feel free to share with our readers in the comments section below. Or drop us a line at mfn@foundationcenter.org.

Requesting a Flexible Work Arrangement

July 16, 2016

Work-life-balanceThe Georgetown University Law Center defines a "flexible work arrangement" (FWA) as "any one of a spectrum of work structures that alters the time and/or place that work gets done on a regular basis." This can include: 1) flexibility in the scheduling of hours worked and/or arrangements regarding shift and break schedules; 2) flexibility in the number of hours worked; and 3) flexibility in the place of work. By some estimates, as much as 40 percent of the U.S. workforce is expected to have some sort of a flexible arrangement at work by the end of 2016. If you'd like to join them, the tips below may help.

Remember that flexible work arrangements come in many forms. Many people assume that flexible work means working from home. But there are many others ways to work flexibly, such as starting/leaving an hour earlier or starting/leaving an hour later, taking an afternoon a week off to take your mother to physical therapy (and making the time up another day), or even sharing a job with a co-worker.

Any flexible work arrangement has to not only work for you, it has to work for your team and organization. If you're like most people, there are many work arrangements that would make your life easier. But you are not the only factor in this equation. Take stock of what others in your organization are already doing, talk to friends and colleagues to make sure you have a handle on the pros and cons of the different scenarios you are considering, and do your best to honestly assess whether and to what extent those scenarios work for everyone involved. Your assessment should include the financial aspects of each scenario, as there are often unexpected or overlooked costs — travel and equipment, for example — to letting employees work remotely.

Make a formal proposal. Take the time to write up your proposal as a formal memo. Review your employee handbook and talk to HR (if appropriate). Anticipate the questions and concerns you are likely to face, and formulate your responses ahead of time. Be sure your proposal doesn't only focus on the benefits of the arrangement for you, but instead demonstrates why a flexible arrangement will be good for you and your organization. For example, if you're asking to work from home on Fridays, explain how this will give you a block of time to focus on project-based work that is continually interrupted by meetings during the rest of the week.

Continue reading »

[Infographic] A New Generation of Giving

July 09, 2016

As investment expert John Mauldin noted in a recent installment of his Thoughts From the Frontline newsletter, for much of American history it was unusual to have more than four generations alive at the same time. Today, however, we have six: the G.I. Generation (b.1901-1924), the Silent Generation (1925–1942), the Baby Boomers (1943-1960), Generation X (1961-1981), the Millennials (1982-2004), and the Homeland Generation (2005-2025?). As Mauldin points out, the first two "still control a great deal of wealth, which gives them influence, but they no longer wield the levers of power. That role now belongs to the Baby Boomers and increasingly Generation X." That's because boomers, in growing numbers, are packing up their workstations and moving on to encore careers or retirement. As that happens, writes Mauldin, the social and economic influence of Gen X and, especially, Millennials is growing.

Although generational differences are often overstated, generational cohorts tend to share values and a worldview that differ from those of their parents and grandparents. And that, as the folks from MobileCause note in the infographic below, is something every professional fundraiser needs to consider as Millennials emerge as a potent philanthropic force.

Continue reading »

Millennials and the Presidential Election Cycle: Does Cause Engagement Change in an Election Year?

June 21, 2016

Patriotic-thumbs-up-buttonFew things in the life of our nation serve to heighten awareness of particular social issues and causes more than a presidential election cycle. And given the historic (and boisterous) nature of this particular cycle, my research team and I wanted to understand how – if at all – millennials' philanthropic interests and engagement might change in response to the campaigns mounted by various major-party candidates, and whether these changes were influenced by demographic factors such as gender, age, and political ideology.

Our research has consistently shown that millennials value cause-related work and make a point of engaging with causes that align with their interests. At the same time, the research we've conducted to date in 2016 shows that millennials are more likely to passively engage with a cause – for example, signing a petition – than actively engage through volunteering, participating in a demonstration, or making a donation.

Indeed, although three out of four (76 percent) millennial respondents in the first phase of our study believe they can help to affect change on a social issue in which they're interested, only one out of two (50 percent) had volunteered for and/or donated to a cause aligned with an issue they care about in the past month. Our research also uncovered that, to date, slightly more than half had supported a community project (defined as any kind of cause work that addresses the shared concerns of members of a defined community) aligned with a cause they're interested in, while only one in three had participated in a demonstration (i.e., a rally, protest, boycott, or march) in the past month.

In contrast, two out of three millennial respondents indicated they had signed a petition related to an issue they care about in the past month.

Cause Engagement by Gender

When looking at cause engagement by gender, the first wave of our 2016 research (March to May 2016) found that male millennial respondents are more engaged in cause participation of all types (volunteering, donating, supporting community projects, participating in demonstrations, signing petitions) during this presidential election year than are female millennial respondents.

Continue reading »

A New Generation of Girl Philanthropists Inspires

March 11, 2016

Violet_giving_circle_for_PhilanTopicAs seniors at the elite Marlborough School for girls in Los Angeles, Olivia Goodman and Alana Adams are getting a top-notch education, preparing to attend renowned universities, and looking forward to long and rewarding careers.

They know they are fortunate. But they're also painfully aware of what lies beyond their private school campus. They know that, just a few miles away, there are schools that lack basic supplies and where teenagers try to focus while the sound of gunshots can be heard outside.

That's why, in 2014, Goodman and Adams joined the student-run Violets' Giving Circle, part of the Women's Foundation of California's network of six collaborative giving circles. Recently, Goodman, Adams, and nineteen of their schoolmates announced they will award a total of $40,000 in grants to four Los Angeles-based organizations that support educational access and opportunities for women and girls. The organizations are Homeboy Industries, New Village Girls Academy, Women in Non Traditional Employment Roles (WINTER), and WriteGirl.

The Violets not only are inspiring, they are emblematic of a rather startling development in giving. At all income levels and ages, women in 2016 are more likely than men to give to charity — a dynamic that researchers refer to as the gender gap in charitable giving. Indeed, in one study, baby boomer and older women gave 89 percent more to social causes than men their age, while women in the top quartile of income gave 156 percent more than men in that cohort.

Researchers have a few hypotheses as to why this is the case. One is that women tend to be more altruistic and empathetic than men because of the way they are socialized with respect to "caring, self-sacrifice and the well-being of others." The Violets, who are celebrating the tenth anniversary of the group this year, are just one example of how the gender gap in charitable giving applies to girls as well.

Continue reading »

Most Popular PhilanTopic Posts (February 2016)

March 01, 2016

A couple of infographics, a book review by Matt, a short Q&A with the MacArthur Foundation's Laurie Garduque, an oldie but goodie from Michael Edwards, and great posts from Blake Groves and Ann Canela — February's offerings here on PhilanTopic beautifully capture the breadth and multiplicity of the social sector. Now if we could only get it to snow....

What did you read/watch/listen to last month that made you think, got you riled up, or restored your faith in humanity? Share with the rest of us in the comments section below, or drop us a line at mfn@foundationcenter.org.

Gen X and Millennial Women: Ready to Give in More Meaningful Ways

January 28, 2016

Professional-womenOver the past couple of decades, baby boomers have been the lifeblood of charitable giving in the U.S., their rock-steady giving fueling nonprofits' efforts to make a difference in the world. While aging boomers continue to play an outsized role in charitable giving, research tells us their giving levels will start to decline over the next few years. But with the world focused on achieving the Sustainable Development Goals by 2030, it's imperative that nonprofits begin to build relationships with younger generations and inspire them to give in more meaningful ways. While a lot of attention has been focused on millennials, a generation that is even larger than the boomer generation, a growing body of evidence suggests that the next demographic cohort to step up as significant givers will be Gen Xers and "older" millennials — especially female donors between the ages of 30 and 45.

Let's look at some of the factors that could drive increased giving within this group. We know that the greatest wealth transfer in American history has already begun, as the so-called Silent generation and boomers pass on their wealth to their children and grandchildren. Indeed, according to a study from Accenture, more than $30 trillion eventually will be passed on to these younger generations. Moreover, history shows that people, as they reach their thirties and forties, begin to think about their legacy and establish giving goals, while a number of recent surveys tell us that donors in this demographic group are likely to increase their giving, with women an increasingly significant factor in that giving. In fact, according to the Women's Philanthropy Institute at the Indiana University Lilly Family School of Philanthropy, women in almost every income bracket give more than their male counterparts.

Being in a financial position to contribute in a meaningful way is only part of the reason why women between the ages of 30 and 45 are poised to become game-changers for philanthropy. A second is that women in this age group are deeply interested in and motivated to make a difference in the world. As a group, they are culturally diverse, connected to the world in new ways, and see themselves not as individual philanthropists but as members of a community. Many also are well educated, find themselves in leadership roles, and are focused on proactively shaping the environment in which their children will grow up. Yet, despite their potential as donors over the long run, they have not been a focus of the charitable sector.

Continue reading »

Tips for Working With a Recruiter

December 31, 2015

Dream-job-next-exitAs a recruiter focused on the nonprofit sector, I've interacted with thousands of candidates over the years. And I've often wished that more people understood how to fully leverage the recruiter-job candidate relationship. To that end, here are some tips for working with a recruiter that will help you land your dream job in the new year.

Return our calls! A recruiter could be reaching out to you to tap your network or to see whether you're interested in a particular position. While you might not be looking for a job today, taking five minutes to return the recruiter's email or call will help you establish a relationship that could lead to your next professional opportunity. It's worth the time and effort.

Be honest and open about your compensation requirements, whether you are willing to relocate, and other potentially sticky issues, including whether you have been contacted by or are working with other recruiters. A good recruiter will be able to guide you through those issues to a satisfactory outcome – but only if you're honest and up front with her.

Leverage your recruiter's experience to help you navigate the hiring process. When working with a recruiter, be sure to ask questions about what you should emphasize, what you should downplay, and how to manage questions about gaps in your experience. It's in a recruiter's best interests to help his or her candidates shine, and you might be surprised at how effectively we can help you do that.

Continue reading »

Most Popular PhilanTopic Posts (November 2015)

December 03, 2015

Recent events are a sobering reminder that life is short and the future a mystery. But as Gandhi tells us, throughout history, the way of truth and love always has won out in the end. In that spirit, here are links to half a dozen or so of the most popular posts on PhilanTopic in November....

What did you read, watch, or listen to over the past month that made you feel hopeful? Feel free to share in the comments section below, or drop us a line at mfn@foundationcenter.org.

Multi-Generational Models That Work

November 05, 2015

This is the third post in a three-part series. Click here for part one, "Going Long: Building a Legacy of Family Philanthropy," and part 2, "Raising the Next Generation of Givers."

Multigenerational_philanthropyIf you have not read the first two posts in this series, I encourage you to take a few minutes to do so now. In this final post, I will compare three alternative models for structuring family philanthropy, each of which — properly planned and managed — can produce meaningful and satisfying long-term results, and will conclude with a few practical tips. But before diving in, allow me to note the obvious:

The information provided here is general and educational in nature and is not intended to be, nor should it be construed as, legal or tax advice, neither of which the author is qualified to provide. Readers are strongly encouraged to consult with their tax advisor or attorney before making significant charitable decisions or establishing a charitable giving program.

Now that we've gotten the disclaimer out of the way, let's compare some of the key features and benefits of donor-advised charitable funds, private/family foundations, and supporting foundations — three popular structures for managing current giving and/or multi-generational family philanthropy.

Donor-Advised Charitable Funds

A donor-advised fund is a charitable savings account of sorts, established within and managed by either a traditional public charity, community foundation, or, more recently, a nonprofit subsidiary of a commercial financial institution (Vanguard and Fidelity being among the largest in this category).

Donors can brand their donor-advised fund and name successors or charitable beneficiaries, while contributions are placed into separate donor-advised fund accounts where they can be invested and grow tax free.

The donor-advised fund allows individuals to make charitable contributions, receive an immediate tax benefit, and then recommend grants from the fund over time. (More on that later.)  Contributions are irrevocable, and donors can contribute to the fund as frequently as they like and then initiate grants to their favorite charities when they are ready, with no minimum annual distribution requirement.

Continue reading »

Raising the Next Generation of Givers

November 02, 2015

This is the second post in a three-part series. Click here for part one, "Going Long: Building a Legacy of Family Philanthropy."

Sapling-1In my experience, accumulated over the course of a professional career working with and observing philanthropy and philanthropists, I believe there is a strong argument to be made for multi-generational philanthropy based on the notion that wealth accumulated over multiple generations or through the extraordinary success of one generation ideally should be used to build social capital with long-term, recurring benefits.

Paraphrasing Warren Buffett, a philanthropist-friend once told me that he intended to leave enough for his children and grandchildren so that they could do anything, but not so much that they could do nothing.

Creating a legacy of shared family giving is one of the best available ways of preparing future generations for leadership roles in their communities, based on an understanding that inherited wealth is not only a means for personal gratification but carries with it a responsibility for advancing the public good.

There are of course legitimate first-generation concerns about whether their children's values and charitable priorities might well diverge from their own. And the jury is certainly out as to whether members of the "entitled generation" now coming into their own will share their postwar, baby boomer parents' commitment to collective responsibility and sacrificial giving.

There is reassuring news, though, for those concerned about passing on charitable assets for their children to steward. Not only is there much that can be done to train the next generation in the art of philanthropy and social responsibility, but the process can produce enormous psychic benefits for both generations and bring families together around a core of shared values while respecting diverse generational interests and priorities.

Continue reading »

Contributors

Quote of the Week

  • "The definition of insanity is doing the same thing over and over and expecting different results...."

    — Albert Einstein (1879-1955)

Subscribe to Philantopic

Contributors

Guest Contributors

  • Laura Cronin
  • Derrick Feldmann
  • Thaler Pekar
  • Kathryn Pyle
  • Nick Scott
  • Allison Shirk

Tweets from @PNDBLOG

Follow us »

Archives

Other Blogs

Tags