The Generational DivideUse of generational trends

in marketing your annual giving program.

What is a Generation?

A generation is a subdivision of population grouped in time intervals of approximately 18-20 years.

Each generation’s attitudes and beliefs are formed by the cultural shifts, influential public personalities, technological changes, and the major events during their formative years.

“Each generation imagines itself to be more intelligent than the one that went before it, and wiser than the one that comes after it.”

- George Orwell

Why is this important?

Do you remember when Kennedy died?

Technology and Communication1. “Anything that is in the world when you

were born is normal and ordinary and is just a natural way the world works.”

2. “Anything that is invented between the time when you are 15 to 35 is new, revolutionary and exciting, and you can possibly get a career in it.”

3. ‘Anything invented after you are 35 is against the natural order of things.”

Source: Quote from late author of the Hitchhiker’s Guide to the Galaxy, Douglas Adams.

Perceptions and Values

The graph shows the percentage approving of interracial dating for each of four generations, tracking their responses across the 13 separate waves of polling between 1987 and 2009.

Source: Pew Research Project

At Mizzou …

We are soliciting and stewarding up to five generations annually. Our primary focus through the annual fund are the four generations listed below.

TraditionalistsBaby Boomers

Gen Xer’sGen Yer’s

Where are you on the timeline?

Traditionalist’s Major Influences Affected by the Great Depression Franklin Roosevelt (New Deal) Introduction of TV and TV dinners World War II, Korean War Many are Veterans – GI Bill Commercial Air Travel Civic Organizations, Lodges Big Band Era, Jazz

Baby Boomer’s Major Influences Civil Rights Movements Birth Control Moon Landing Cuban Missile Crisis Assassination of Kennedys and MLK Inflation Nixon and the Watergate Scandal Vietnam Height of the Cold War Women in the work place Divorce Rock and Roll - Woodstock

Gen Xer’s Major Influences Challenger Disaster Berlin Wall Desert Storm Star Wars - Reagan Latch Key Kids and Daycare kids Skyrocketing Divorce Rate Scandals Personal Computers Cable TV HIV Video Games

Gen Yer’s Oklahoma City Bombing High School Shootings Era of Natural Disasters Desert Storm, Iraq and Afghanistan 9/11 Terrorism Reality TV Computer/net/cell - instant information Lowest Parent/Child ratio in U.S. History Helicopter parents and friend parents You have been protected Generation of self esteem

Unique characteristics of the Gen Y• 1 out of 4 lives in a single parent

house-hold, 3 out of 4 with working moms.

• The child is the center of the household.

• Loose family structure, merged families.

• Coddled and protected kids.

• Value individuality yet are immersed in a global environment .

• Most diverse segment of the population.

•Surrounded by digital media.

PERSONAL,WORK AND LIFESTYLE CHARACTERISTICS

  1922-1945 1946-1964 1965-1980 1981-2000

  Veterans, Silent, Baby Boomers Generation X Generation Y, Gen Yers,

  Traditionalists Millennials, Echo Boomers

         

Core Values Respect for authority Optimism Skepticism Realism

  Conformers Involvement Fun Confidence

  Discipline   Individualistic Informality Extreme Fun

    Civic     Individualistic/Peer Social/Peer Influences

Family Traditional Disintegrating Day Care/Latch Key Merged Families

  Nuclear   Friend Families  

Education A dream A birthright A way to get there An incredible expense

  GI Bill     Not a choice

Dealing with Put it away Buy now, pay later Cautious Earn to spend

Money Pay cash   Conservative Depend on parents

      (except kids)  

Work & Never the twain No balance Balance Balance

Family shall meet Work to live Non-traditional okay Non-traditional okay

    Spouses work    

CHARACTERISTICS CONT… 

  1922-1945 1946-1964 1965-1980 1981-2000

  Veterans, Silent, Baby Boomers Generation X Generation Y, Gen Yers,

  Traditionalists Millennials, Echo Boomers         

Work Ethics & Hard work Workaholics Eliminate the task What's next

Values Respect authority Work efficiently Self-reliance Multi-tasking

  Sacrifice Crusading causes Want structure & Tenacity

  Duty before fun Personal influences direction Entrepreneurial

  Adhere to rules Desire equality Skeptical Tolerant

    Question authority   Goal oriented

Messages that Your experience You are needed Transparency You are bright and

Motivate is respected You are valued Forget the rules creative. You will make

      Legacy   a difference.

Leadership Directive Consensual Everyone is the same TBD

Style Command-and- Collegial Challenge others  

  control   Ask why, why, why  

Interactive/ Individual Team player Entrepreneurial Participative

Volunteer Style  Follows direction Loves meetings Hates meetings  

         

Social Media

Do you Twitter, Facebook, LinkedIn, FourSquare…?

Critical to Generation Y Necessary for Gen Xers Helpful for Baby Boomers and

Traditionalists

*Social Media is all about the conversation.

Communication/Media

Source: Pew Internet & American Life Project, April 29-May 30, 2010.

Do you or should you Tweet?13% of online adults use Twitter

Source: Pew Internet Project – Smartphone Adoption and Usage July 11, 2011.

To App or Not to App?

According to the Pew Internet Project finds that one third of American adults – 35% own smartphones.

Several demographics have high levels of smartphone adoption, including the financially well-off and well educated, non-whites, and those under the age of 45.

Source: Pew Internet Project – Smartphone Adoption and Usage July 11, 2011.

Chicago Tribune, June 15, 2007

“That good feeling you get by writing a check could be your brain patting itself on the back.

Reporting in Friday’s issue of the journal Science, a team of economists and psychologists at the University of Oregon have found that… donating money to charity activates regions of the brain associated with pleasure.”

So, how do we market to Gen Y?Four main considerations per Marketing to Generation Y: What You Can’t Afford Not to Know.Cheap cost Good QualityFast serviceAn “experience”

Source: Marketing to Generation Y: What You Can’t Afford Not to Know, Bea Field, 12/25/2008.

Transactional Fundraising

The Number 1 way Americans donate is through the purchasing of products.

37% of the American population give this way. 67% of Americans believe the company chooses a cause as a way to get new customers. 74% see a disconnect between the company and the cause supported.

Source: MLS GROUP Americas April 2011

Transactional Giving and Gen YThe College Explorer survey of college students ages 18-30 revealed:41% prefer socially responsible brands.49% said that social messages incorporated into advertising have an effect.93% say they are less likely to ignore an ad that promotes a brand’s partnership with a cause.

Source: Alloy Media & Marketing.com 8/4/08

Alumni Association vs. Philanthropy Tested giving against joining our alumni association.Calling

Philanthropy – 8.6% pledge rate, avg. gift of $67.

MAA – 12.9% pledge rate, avg. membership of $35.

*Fulfillment 68% vs. 63%, question now becomes is participation more important than dollars raised?

Alumni Association vs. Philanthropy Tested giving against joining the alumni association.

Email – Dual ask to 6000 records. Philanthropy – 23 gifts, avg. gift of $89. MAA – 36 memberships, avg. membership

of $35.

Text Messaging Fundraising

93% of the adult population uses a cell phone. 53% of Gen Y, and 40% of Gen X texting

regularly. In 2010, it was estimated that $50 million had

been raised through mobile texting. Most went to emergency relief – primarily Haiti,

and from Gen Yers. In a recent study, 58% of Gen Y, followed closely

by Gen X said they would consider giving by text. Boomers and Traditionalists said they were NOT likely to give this way.

Source: Convio, Edge Research, and See Change Strategies survey in early 2010 on mobile/text giving. Pew Research Center, Social Media and Mobile Internet Use Among Teens and Young Adults.

Changing phonathons

Phonathon Giving

How effective is your phonathon? Are you combining it with other media? At Mizzou raising more money from less

donors. 90% of donors are over 30. Harder to reach populations – in particular

the under 35. Reaching 30% less people in the same

amount of time as we did 4 years ago.

Direct Mail Giving

How effective is your direct mail? Are you combining it with other media? At Mizzou raising more money from less

donors. 2008-2009 - $900,000 by direct mail. 2010-2011 - $1,100,000 by direct mail. 85% of 2011 donors were over 40.

Email and Online Giving

How effective is your email solicitations? Are you combining with other media? At Mizzou we have significantly

increased the number of our online giving. Raised less then $20,000 in email in 2007,

for 2011 – over $60,000. Website traffic has increased dramatically in

the last five years.

Face to Face still RULES!

When surveyed all four generations agreed that face-to-face requests are best. This is most effective when it is a friend making the request on behalf of your organization.

Gen Y versus other generationsOlder donors are more likely to keep giving once you engage them, then younger donors.

Testing of the alumni donor base, first time donors overall give a second year around 28%.donors age 40 + renew at 39% donors under age 30 less then 16%.

Numbers as of FY2008.

Total Giving by Household and Generational Cohorts

Source: 2006 giving, Center on Philanthropy Panel Study, 2007

Percent of Households Giving by Generational Cohorts

Source: 2006 giving, Center on Philanthropy Panel Study, 2007

Thoughts on Traditionalists

Best Planned Giving prospects. Believe in you and expect charities to manage their assets

well. Charitable Remainder Trusts, Gift Annuities, IRA Rollovers,

this group is prepared to invest in your organization. Civic donors and understand the importance of

unrestricted. Face to face, traditional direct mail, phone calls, personal

handwritten notes. Special Events – main attendees at traditional approaches. Website is important for information gathering.

Thoughts on Baby Boomers

Great Planned Giving prospects. Just as likely to make a major gift now. More likely to give to big, world issues. Creating large number of family foundations. Recognition and giving societies are important. Web site – important for information gathering. Volunteer – social way. Social Media – with the emphasis on social. Face to face, traditional direct mail, phone calls,

personal handwritten notes.

Thoughts for Gen X

Sense of Humor. More Donor-Centric. Relate to their family. Transparency is key. Volunteer opportunities – PRODUCTIVE. Social Media presence –RELEVANT. Web presence REQUIRED and must be RELEVANT. Stewardship – IMPACT and TIMELY. Face to face, handwritten notes, highly

personalized direct mail, social media and email.

Wealthy Gen X Prospects

14% of Gen X donations went to international organizations.(6-9% higher then older generations.)

12-15% Gen X was more inclined to donate for family-centric reasons as their top consideration. (4-5% consideration for older generations.)

27% of Gen X millionaires reported having a charitable trust already. (9-10% for older generations.)

Source: Northern Trust’s Wealth in America, 2008 Study, which surveyed 1,000 US millionaires in late 2007.

Thoughts for Generation Y

Sense of Humor. More restricted – or specific (with global

overtones). Keep it donor-centric. Social Media – all about peer confirmation. Family oriented – include their parents. Expect more accountability for their support. Transparency is key. Volunteer – SOCIAL and PRODUCTIVE. Web presence REQUIRED and must be RELEVANT. Multi-media approach to staying in contact. Personalized stewardship should be timely.

Giving Circles for Gen X and Gen Y“A Giving Circle is a group of individuals who pool

their resources and decide together how to impact an agreed upon social problem.”

Estimates of over 600 giving circles involving over 12,000 people.

Most of the giving circles formed today were established within the last 5 to 10 years.

Source: GIVING US Spotlight Issue 2, 2010

Giving Sum

Giving Sum is a giving circle composed of “next generation leaders” who collaborate and direct their resources to impact causes in the local community. One of the goals of the Giving Sum is to move beyond just giving cash donations, but to engage hands-on in the community through civic and volunteer endeavors.

Source: Givingsum.org located in Indianapolis, IN established in 2008.

Predicting the future…

“Over the next decade, giving money will become less important than giving voice, giving time and giving work.”

Ben Rattray, Founder/CEO of Change.org as quoted on SocialCitizens.org blog, Dec. 30, 2009

Takeaways… Do you have a strategy for engaging people 45 and younger in

your organization as volunteers, leaders, event participants, or donors?

Have you considered ways to build trust between your organization and prospective donors in the different age cohorts?

Can you give your supporters ways to share their enthusiasm for your organization with friends and family, whether face to face or through other media?

Are you using multiple communication channels for requests, sharing information, and reporting results to your donors?

Does your organization have “high touch” supporter events so that people feel engaged with your work, feel valued and special?

Do you know who your donors are?

Source: Giving USA Spotlight Issue 2 2010

Any Questions?

Laura Lucas Director of Annual

GivingUniversity of MissouriLucasL@missouri.edu

(573) 882-2134