Why Demographics Matter in Fundraising

A lot of people would not give demographics a second thought.  But the reality is, when it comes to fundraising, it matters a lot.  We can segment and target our communications and appeals to increase the response rate of our donors, which will ultimately grow the financial base of the church or organization.

Demographic information is used in several industries.  Often referred to as

demographic segmentation or targeting, corporations and marketeers look for markers like age, race, religion, gender, family size, ethnicity, income, vocation and education, to name a few.   

Truthfully, big corporate brands like Nike, Coke, McDonalds, do this better than anyone.  But small boutique firms are learning just how lucrative focusing your messaging to attract specific clients or customers can be too. 

Some non-profits have learned to do the same thing with their donors, and it has probably been utilized the most in direct response strategies and major gift giving. 

Focus your Communications

The best way to appeal to your donors is to know what they are passionate about. 

But sometimes it is challenging to get to know every one of our donors personally.  This is certainly the strategy behind major gifts, but what about the annual donor who you have probably never met.  This is where understanding demographics can help.  As much as we are all very unique in our own right, we are often very similar at the same time. 

The church would certainly have a bit of an advantage here with getting to know the people who attend on Sunday.  But as more and more churches are going online, those online congregations are growing also. 

It’s nice to have an idea of who we’re trying to attract in our outreach efforts.  Young families?  Seniors? Singles?  Demographic information can help you focus your messaging for better success. 

And if you read last week’s article about doing a giving analysis on your donors, and you have already completed the exercise, you’ll probably know what demographic groups are missing in your giving now as well.

The more you know about the people you are appealing to, the easier it will be to build a connection to them and develop the most effective strategy for your campaign or project. Collecting important demographic information and knowledge can also help you to know when it makes more sense to use a stirring picture that pulls at your donor’s heart strings or a bullet point list of common-sense reasons why they should help. 

When you focus on your audience and where they are at, you can plan accordingly with the right strategy that will deliver results.

Canadian vs American Data

It is always practical to look at useful information from our neighbours to the south and often it can be applicable and insightful.  But the truth is Canadians and Americans are fundamentally different on a number of levels; government, social funding, and according to Michael Adams, social values.  So as much as we can learn from our American counterparts and make some statistical comparisons and generalizations, we need to be cognizant of the fact that Canadians are also unique. 

Canadian Research

Michael Adams has been conducting demographic research in Canada since the early 1990’s through the Environics Group of Companies.   I came across him at an Association of Fundraising Professionals conference in Toronto a few years later. 

During a master’s thesis, I was intrigued by his research on several levels.  First, it is focused on Canadians, which is important to me and probably you, because Canadians are unique. 

Secondly, he was looking at more than just numbers and incidence.  Adams was digging down with different generational groups and flushing out what we as Canadians value such as: money, time, civic loyalty, and more across a collection of 80 motivations and values.

What resulted from this research, he called, Social Values Tribes, referring to the differing subgroups within each generational group.  In his first book, Sex in the Snow, he introduces and outlines these 12 tribes across, the Elders, the Boomers and The Gen X’ers.

Over the last 20 years, with continued research he has written several books, and continued to develop literature on the Social Values Tribes.   His attention like many others turned to include the Millennials in the Canadian Millennials Social Values Study in 2017.  A study encompassing just over 3000 millennials from across Canada. 

Therefore, I find this research interesting and informative when looking at Canadian demographics.  I will try for the most part to make references to Canadian data when available, and I will specifically note when it is otherwise.

I am going to start with the older generations in this article and the go back to the younger generations in the next article because I also want to expand on some of the challenges facing churches and these younger generations.  

Gen X makes up just over one-quarter of the Canadian population (26%), making it the second smallest of the major generations observed in Canada.  This is the generation I am part of.

In the literature over the years, they have been known for a lack of a defining characteristic.  In fact, that is where the “X” originated as a symbol in replacement of a defining word or characteristic.  Sounds about right.  My group of high school friend were pretty eclectic. Looking back, it was probably the start of generational and cultural diversity that became hard to define in a single word.

Additionally, Gen X’ers are one of the first generations to throw tradition and duty to the wind and become more accepting of flexible definitions of family and a desire for egalitarian relationships with those around them.   

Gen X are also more likely to have household incomes higher than $100,000 per year and they’re also more likely to have graduated from university.

Gen X Giving and Volunteering Statistics

In 2014, 26% of the overall donations came from Gen X and Gen Y (Millennials).  There is some concern they won’t match the pace of giving set by the eldest and most generous generation, and rightfully so, because they haven’t so far in comparison.

However, 86% of Canadian Gen X’ers are donors and globally more than half are enrolled in monthly giving programs.  Active online, this is a good place to engage with them about your mission and invite them to partner with you in giving.  The thing is, we’re just not giving as much overall. 

J. Clif Christopher, in his book, Not your parents offering plate, says Gen X’ers are the most untrusting cohort and you will need to be prepared to dig in and prove to them what you need, why you need it and they need to be able to see the impact of it immediately.

Sounds about right.

Volunteering

About 45% of this generation volunteers, which is behind most of the other cohorts.  I have also witnessed this personally in my own group of friends.  Unfortunately, this generation would rather open their wallets than give you their time, but all age groups from Gen X and younger declined about 8% from 2004 to 2013.  Boomers on the other hand, increased their time and hours by 8% in the same span of time. 

How can you reach Gen X’ers?  

This generation values donating and connecting with non-profits online, especially through mobile devices and social media. Around 59% of Generation X is inspired to donate to charity by a message or image they saw on social media. You need to establish online relationships with these donors, build trust, and give them opportunities to act on behalf of your cause.

They also give more frequently than other age groups, but their decision to donate hinges greatly on whether they can see their gift’s impact.  Even though Boomers were in my opinion the driving force of Donor Centred Philanthropy, Gen X’ers continued this level of accountability and interaction. 

Make sure your website details exactly where donations will go. Translate dollar amounts into tangible results and provide proof through visual content like photos and videos of your work being carried out on the ground. Providing this essential information up front can help you build trust and win over these discerning donors.

Both Gen X and Millennial donors are more likely to participate in fundraisers involving social and physical activities like walks, runs, or cycling events.

I think there are few generations that have received the focus and study that the Boomers have throughout recent history, rivalled only by their own offspring, the Millennials.

In the early 2000’s one of the emerging trends in Canadian philanthropy was the move towards donor directed charitable giving, which meant donors wanted to be involved and have more control over the allocation of the dollars they donated to charity. According to Adams, this was rooted in an increased desire for personal control and autonomy, a diminished readiness to give up management of financial affairs to bureaucratic institutions and a refusal to donate merely out of a sense of guilt or duty.  Like their parents did. 

Another factor may have been the growing number of entrepreneurs in Canada who were particularly inclined to a greater involvement with the charities they donated to.  Venture Philanthropy was also born out of this need to be more involved and make contributions on a deeper level.

Today, as the boomers have aged, they have increased the number of people over 65 from 10% of the population to 17% which will have implications in several areas not just fundraising.  But overall, they have not changed much and continue to reflect general Canadian values in giving and volunteering. 

Boomer Giving and Volunteering

Baby Boomers represent the top source of income for most non-profits. They make up 35% of the nation’s annual donor base, but they contribute 47% of all gifts made by individuals.

About 40% of them volunteer and volunteers aged 55 and older give the most volunteer hours in Canada. 

It is worth noting, they are most likely to give to religious organizations, health organizations and hospitals.  Boomers are also more likely to give through sponsoring someone, door to door canvassing, and after a telephone request.

How to reach them

While they still engage with non-profits through direct mail, their online giving and social media use continues to increase.  This is good news.  Because their kids are there too.

Boomers used to give primarily through direct mail appeals, they are increasing their online giving (likely under pressure from their Millennial kids) and globally 49% are enrolled in monthly giving campaigns and 35 percent donate to crowdfunding campaigns, but only 24 percent gave in response to direct mail.

Baby Boomers are not as trusting in the institution after going through Watergate, Vietnam and Iraq.  Appeals to the Boomers should be packed with evidence, ensuring them this is the best investment for their giving.  It has to make sense to them and they need the trust factor.

There’s a good chance your Boomer donors forged a connection with your church or non-profit in earlier years, and they’ve been loyal supporters since. Reach out to the donors who’ve regularly supported you and ask them to join your special group of monthly donors. Emphasize that automated monthly giving is an easy and efficient way to support the programs they care about.  Remember, Boomers like when you use their money efficiently. 

This is Canada’s oldest and probably the most generous generation.  Again, much discrepancy as to how they are categorized and what they are referred to, it is generally accepted that they are grouped together at this point in their lives.  This demographic group gives out of a sense of duty and institutional loyalty.  They are 78 years or more now though, and this cohort is dwindling quickly. 

According to Adams, this generation of Canadians are distinct from their younger counterparts in two ways; there is a right and wrong in every aspect of life from gender roles to the conduct of business, and second, they are willing to sacrifice personal pleasure for reward in the afterlife and they cannot help but act upon their sense of duty and guilt. 

Of course, there are those who did not resemble this and would probably be considered rebels of their time.  They were more like the upcoming boomers and embraced their rebelliousness by joining in that movement against traditionalism.

For the most part though, many still hang onto their social values of conformity and duty.  Charities and churches have been the lucky beneficiaries of their generousity for years. 

The truth is though, I think a lot of churches have been landlocked between this generous generation and their support of the traditional church and the changes needed to attract a younger generation to the church that is ultimately essential to its survival.  I really do feel for ministers and leadership in this situation right now.

Elder Giving and Volunteering Statistics

This generation actually has some really interesting statistics in giving and volunteering.  Canadian eldersaged 75 and older give $200 over the Canadian average at $726 per year.  But they are the least likely to volunteer which seems obvious enough.

Overall older Canadians are more likely to donate than younger Canadians.  The 75 + cohort is most likely to give to religious causes, give larger amounts overall and to more causes.  Their causes of choice are most often religion, health and social services. 

How to reach them

Other than their place of worship, Elder donors rely the most on direct mail to support and engage with the causes they care about.  Many would also still respond to phone solicitations as well.

These donors are more than ready to become solid members of your online fundraising community.  Make sure you are giving them something in that space to engage with your congregation.  Increasing your touch points through an online presence can keep your church or charity top of mind for a lot of seniors and give them the much-needed interaction some lonely seniors need.  Again, another group of people benefiting from online church!

Just ask and this generation will give!

Knowing who is in your congregation and some general characteristics about them can go a long way in crafting communications and appeals that get better results.  Honestly, just recognizing that one size fits all doesn’t really work is the first step.  Maybe that’s why your younger generations aren’t giving…you just might not be appealing to them the right way. 

Find out who is in your congregation or donor base and start crafting smarter messages and appeals today. 

If you need some help with that schedule a call or check out my website.  We have creative and strategic services available when it comes to social media and communications.