Millennials: there’s no escaping this generation and the stereotypes that accompany them. Set to be the largest demographic in the workforce in America by 2020, it’s no secret that this group of individuals is having and will continue to have a huge impact on our economy.
But the workforce isn’t the only thing that millennials are single-handedly changing; they’re also having a dramatic effect on philanthropy. According to the Case Foundation’s Millennial Impact Report: 2015, 84 percent of millennial employees gave to charity in 2014 and 70 percent of them volunteered more than one hour of time to a cause. Why is this such a huge deal? Because millennials are donating time and money and earning less money than their counterparts did. This demonstrates an intrinsic desire to give back to the missions and causes that they care most about, despite financial constraints. In fact, Fidelity Charitable recently found that 77 percent of millennials who have investable income participated in “impact investing.” This time of investment is one that goes toward achieving social and environmental welfares.
Something that may not be quite as much of a surprise is the impact that millennials have on philanthropy from a social perspective. In fact, the Millennial Impact Report found that 75 percent of millennials had either liked, retweeted or shared a nonprofit’s content on a social channel, leading to the higher giving rate of 84 percent, as well as the higher rate of volunteerism (72 percent), the 2015 Millennial Impact Report found. As millennials engage with nonprofits on social media, they form a connection and are more likely to either donate, volunteer their time, or both. The force of social media is strong with this demographic.
Another thing to consider in the philanthropic impact of the millennial generation is the great wealth transfer. According to InvestmentNews, $30 trillion is projected to be passed down from the baby boomer generation to Generation X and, finally, to millennials. This is the greatest wealth transfer ever. Literally, ever. And this huge transfer of wealth could be the golden ticket for nonprofits for decades to come, as millennials who grew up giving continue to do their philanthropic duty.
However, in order to fully reap the benefits of this wealth transfer within the millennial generation, it’s important to connect with millennials in the ways that are most valuable to them. Stay tuned for our next post that will discuss the most effective ways to engage millennials in order to increase their giving rate.