Are you recognizing those nextgen patrons?

Blackbaud Institute just released its 2018 report, The Next Generation of American Giving, updating previous iterations from 2010 and 2013. In my opinion, it is the definitive compilation of data guiding nonprofits on where generational giving is headed. What interests me is how we can put this research into action and translate it into strategy at the organization level.

Going counter to much of what has been written in the last few years on generational giving, the 2018 report hails the near-term potential of Gen X over the hype of Gen Y, noting that perhaps some organizations have probably been too focused on Millennials. The report raises some fundamental questions of generational studies; for example, are observed generational behaviors constant at any age or are they characteristic of and restricted to the particular age in which they're observed? In other words, will the behaviors of a 60-year-old Millennial look like those of a Boomer today, or will they remain consistent with their current giving patterns?

The report indicates that fewer people are giving, but the total amount they're giving is larger than in previous years. Blackbaud doesn't break this data down for arts organizations or distinguish data by organizations of different size or revenue, so we have to assume that this trend applies to all varieties of arts organizations. I think it would be interesting to know if patrons are giving more to the same organizations or giving similar amounts to more organizations. I think that information would be revealing as fundraisers look to tailor their future donor strategies. According to the report, more than 20% of Gen Xers plan to increase giving over the next year, but this doesn't speak to the Gen Xers who aren't yet giving. My real interest is how to get this group engaged.

While there has been a lot of buzz surrounding Millennials, it will be decades before they dominate the philanthropy market. Assessments of the giving habits of Gen Z, the oldest of whom are in college, are largely speculative at this point. Right now we are witnessing the formative experiences that will shape this generation's views towards philanthropy and the arts.

Interestingly, donor recognition drives nextgen patrons more than older patrons. Considering that many organizations have tiered giving levels that emphasize public recognition at higher tiers, I wonder if this is a driving factor behind donors giving more at younger ages. If so, then perhaps tiering young patrons' groups to allow for more growth and recognition potential might yield a higher reward for fundraisers and more fulfilled and engaged donors.