Joe Fisher serves as President & CEO of RenPSG, a leading independent philanthropic solutions provider.
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As a leader and adviser to those in the philanthropic space, I find that many people today feel empowered to help improve society by giving charitably, however not always in the traditional sense. The millennial and Gen Z generations now make up over half of the U.S. population, and as they age into adulthood, I believe they’re in a position to make a global impact without the weight of their predecessors’ expectations or traditions.
In my 25 years of working to scale high-growth enterprise software companies, it’s become apparent that leveraging technology and social media to engage with the philanthropic world is second nature for these generations. Millennials and Gen Z grew up alongside tech, with giving to a cause or nonprofit being an easy click or swipe away via platforms like Venmo, GoFundMe or even directly on social media.
In the financial services industry, innovative payment technologies have fundamentally transformed how we transact, bridging speed and convenience to charitable giving. This leads to empowering more people to give back to their communities as quickly as they can tap for an Uber ride. Impact investment firms and online platforms are enabling people to put their money into portfolios they feel matter to them — focusing on things like clean energy, alleviating poverty, combatting human trafficking and providing clean water strategies in developing countries, to name just a few areas. The way I see it, the most considerable value these services offer is the ability for millennials and Gen Z to feel deeply connected to the causes they support.
As CEO of RenPSG, a long-standing provider of charitable gift management tools, I’ve had considerable exposure to the flow of philanthropic giving via an array of charitable trusts, nonprofits, financial institutions and individuals. Integrating the full power of financial planning options with the generous spirit of these younger generations could revolutionize the philanthropic world by providing access to giving options that may otherwise be reserved for wealthier demographics.
Consider the most recent crisis of 2020. Both the millennial and Gen Z generations gave more than any other generation during the pandemic, demonstrating both the economic power and expansive generosity of this younger age group. How the next-gen (millennials and Gen Z collectively) responded to the 2020 crisis is not a one-time reaction. Philanthropy and traditional giving will not “return to normal.” Instead, I believe the industry will be required to shift toward a more tech-savvy, yet secure method of reaching a younger population.
A quick look back even before the pandemic underscores millennials’ desire to be informed donors. According to data by Give.org, millennials were more likely to research hurricane charities (79%) than baby boomers (56%) or Generation X (59%). Coupled with the fact that they were also the most likely (60%) of any generation to donate to hurricane relief charities after Harvey, Irma and Maria, is a powerful illustration of their powerhouse giving status.
Developing An Online Presence For Philanthropic Organizations
Considering the data above and the fact that more than 95% of younger adults own smartphones in the United States, these generations are likely to research online, using the web as a filter, to determine which organizations would actually be worth giving to. Philanthropic organizations, due to their mission-focused and relationship-based approach, have an opportunity to earn the confidence of these careful generations by following a few suggestions:
1. Scan for any unverified, online look-alikes and report them to the IRS to prevent donors from confusing a legitimate organization with a nefarious one. A common tactic of online giving scams is to emulate the logo, feel and overall mission of a noble, well-known organization.
2. Increase the number of secure, online giving options available to donors by establishing a donor-advised fund (DAF) that gives to a specific organization or a collection of organizations regardless of financial capacity.
Incorporating Charitable Giving In The Workplace
Many millennials choose careers that are cause-focused, rather than employer-specific, leading to a cultural corporate shift that pushes companies to give back. These employers understand how to position their value to passion-focused candidates, espousing a philosophy of global impact. This business priority has now evolved from a philanthropic niche to a crucial part of core business strategy, presenting a unique set of opportunities for philanthropic organizations and the financial institutions that serve them.
For example, corporate giving programs that offer automatic payroll deductions are an easy way to provide access to social impact for employees giving smaller donations. For financial institutions, such as banks, integrating sophisticated charitable tools could provide clients with a more comprehensive, positive banking experience, associating their chosen bank with their favorite social cause.
With technology continuing to advance as an integral part of how giving decisions are made and executed, it’s also forcing a change to the back-of-the-house logistics and due diligence that have made it all possible for more than half a century. Building social purpose into the activities of our daily lives demands new ways to power the process, ensuring the path from compassion to compliance is continually innovating in order to answer the ever-changing trends of the 2020s and beyond.
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