How to Use Demographics in Fundraising Part 2

This is the second part of a two-part series on how to use demographics in fundraising and stewardship.  If you have not read part 1 yet, it would be beneficial if you did before you read this one.

There are certainly some discrepancies here regarding the dates of when some of these cohorts begin and end depending on who you ask.  For the purposes of this article, I am going to use the following dates and categories when referring to these groups:

Demographic Cohorts

Gen Z (b 1996 – present)

Millennials (b 1980-1995)

Gen X (b 1965-1979)

Boomers (b 1944-1964)

Greatest/Elders (b before 1944)

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 Z – Who Are They

1996 – present (28%)

Generation Z makes up roughly 28% of Canada’s total population, according to 2018 data from Statistics Canada.  Most of the research on this group comes out of the US but is still probably relevant when talking about their general characteristics and trends.  

With the web revolution that occurred throughout the 1990s, they have been exposed to an unprecedented amount of technology in their upbringing.  Often described as having a digital bond to the Internet, called technology natives, this generation uses technology to do just about everything — to talk to friends, watch videos and even do homework.   

According to Beth Kanter in an interview with the Guardian, Gen Z are much more active online than millennials and they spend an average of 10 hours a day online including time at school.  They are also seemed to be more self-aware as opposed to self-centred, as millennials have often been depicted.

Interestingly, the Gen Z kids are pursuing post-secondary education at a higher rate in than the millennials did, and this is being credited to the fact that their parents are more educated than the parents of previous generations.  

According to Pew Research, more than four-in-ten post-Millennials (43%) are living with at least one parent who has a bachelor’s degree or more education. Roughly a third (32%) of Millennials in 2002 had a parent with this level of education.  I imagine it would be similar in Canada.

As Generation Z enters the workforce earning money and getting established in adulthood, it is likely that further shifts in generational giving trends will be instituted by this group. This generation’s mindfulness of the world around them drives a desire to improve communities both locally and internationally, moving us closer to a better world every day.

Kanter says, “Gen Z are the next generation of donors. They are tech-savvy and generous.”  She says that this generation wants to change the world with their pocket money. “They are connected and they can see what is going on in the world.”

Giving and Volunteering Statistics – Canadian

Thirty eight percent of Gen Z have never donated because no one asked…and 43% gave their time and volunteered instead.  This is the number one reason people do not donate, because no one asked.  Probably we think kids are too young to ask them to give, but just like anyone else, and maybe more so, these kids do want to help make the world a better place. 

Young donors are the most dissatisfied with their giving.  They would give more but are not being engaged the way they want to be, and less happy with the amounts they currently give. 

They also cited they did not know where to give (28%) and it was hard to find a cause worth giving to (16%).

How to reach them

Young donors are most likely to donate at a place of worship, on one’s own initiative and online.

Engage them online and you have the potential to engage their entire online community.  Let’s face it, everyone gets excited when a young person engages in charitable causes and tackling issues in society, both globally and locally.  So, ask them to get involved with you and your ministry.  They are literally online waiting for you to ask them…and their friends too!  

Greta Thunberg was 14 in 2018, when she did her first sit in for climate change in Sweden.  A year later she was addressing the United Nations at 15.  Do not underestimate the ability of young people to give and enact change.  Indeed, they can. 

A Young Donor Story

A number of years ago we were doing a presentation to church leaders in a leadership reception in their capital campaign. One of the elders brought his son, perhaps 12 years of age, probably because they could not make an arrangement for a sitter. During the presentation of the financial challenge to the group, I noticed the boy writing down figures on a sheet of paper. After we finished, he called us over and asked if we would help him figure out how much he could give to the building program.

I discovered that what he had written down on the paper on the left side was his income from three sources, running a paper route, working at the local grocery store stocking shelves and the allowance he was receiving from his parents.

On the right side he had listed his expenses. As he went through them with us, he looked at me and said, “I have expenses you know.”

He looked at both numbers and said, “I think I can give $5 a week to the building fund. Can you help me put it on the card?” I got a card, added up the $5 over the 156 weeks. It amounted to $780. I’ll never forget when he looked at us and said, “Wow that’s a lot of money.”

The truth is, that he gave more than one third of the adults in the church. My Dad turned to me after and said, “we have just witnessed the birth of a sacrificial giver. “  

Millennials – Who Are They

1980-1995 (21%)

Out of all these groups, the Millennials have received the most attention and study to ascertain if they are going to follow in the footsteps of their predecessors or if they are going to forge a new path of their own.  The truth is, they are probably going to do a bit of both.  

They are now the largest demographic group in history, surpassing the boomers, and arguably the most diverse generation in Canada across not only ethnic, national and religious backgrounds, but also in terms of their values and life choices according to the Canadian Millennials Social Values Study.

While millennials are often described as entitled and narcissistic, research shows some of them are very idealistic and motivated to use their skills to change the world, not just increase their bank account.  But, like every other generation, there are differences within the group.

Millennials are very driven like their Boomer parents to be actively engaged with the charities and organizations they support…even if it is only through online channels. 

They believe in their responsibility to initiate change and are optimistic about their abilities to achieve this. Millennials are finding community through causes and activating each other through social media as they do.

According to The Environics Institute though, they are not really a homogenous group, and they found six distinctive tribes based on the social values survey; Engaged Idealists, Critical Counterculturalists, Diverse Strivers, New Traditionalists, Bros and Brittanys and Lone wolves.  There is some truth in the typical stereotypes, but they only tell some of the story of this cohort.

Bros & Brittanys are the largest of the cohort at 32%.  They have average income levels and below average education attainment, they are enthusiastic consumers, risk takers and thrill seekers and they embrace the flattery of social media.  They are also most likely to be ethnically white. 

Diverse Strivers (20%) have two priorities, making it in life and new intense experiences.  They are most likely to be students of non-white ethnic background (hence the name diverse) and work hard to succeed in career and personal goals.  They maintain a good image and have the latest technology.  These millennials love crowds and attention.  If you have one of these folks in your congregation, get them doing the announcements and interacting with your congregation. 

Engaged Idealists (17%) are, “Millennials on steroids: engaged, sociable, energetic, experiencing seeking and idealistic,” contributing significantly to their interpersonal lives, their careers and community.  Mostly Canadian born, 60% female and living a happy balanced life between work and play, these millennials believe their actions can change the world around them.  

Lone Wolves (16%) equally male or female, skeptical of authority, lacking interpersonal connections, are most likely to have no post-secondary education and incomes under $30K.  Also, most likely to be ethnically white, they are the least interested in settling down, getting married and having kids.

New Traditionalists (11%) are a conservative sub-group compared to the others, these millennials are most likely to attend church and reflect traditional religious values, with conservative family and gender roles identifying with deep family roots.  This group has higher levels of education and income, they are move diverse ethnically and more likely to be female.

Critical Counterculturalists make up only 4% of Canadian Millennials.  This group is the most likely to have a graduate degree (1 in 5), be single, no kids and motivated to keep it that way.  Equally male and female, they are ruled by rationality, inclusion and justice.

Giving and Volunteering Statistics

According to the Canadian Millennials Social Values Study, one third of Millennials volunteer and 68% make charitable donations.  Most of them gave less than $300, but as education and household income increase, so does overall giving. 

Just over a third of Millennials give 5 or more hours of their time a month volunteering and this again is linked to education level.  About half of Engaged idealists, New Traditionalists, and Diverse Strivers volunteer.

The most common type of volunteering is organizing events and activities, followed by canvassing/fundraising and teaching/mentoring, citing reasons to volunteer such as giving back to community, family or friend connections to the cause and religious obligation.  In addition, they noted on a personal and professional motivations such as a sense of accomplishment, developing and learning skills, and networking and job opportunities as reason to volunteer.

The report also indicated reasons they did not volunteer such as lack of time/availability, lack of opportunity/haven’t been asked (take note of this…it was 35% of them), lack of interest, external barriers (such as childcare, costs), and prefer to give money (hint hint).

Notable though was that 1 in 10 cite their previous experience volunteering as their reason to not volunteer again.

When it comes to giving, millennials earning $100K+ who are educated are most likely to give a gift of $500 or more.  Most millennials make a gift of $300 or less (68%).

Engaged Idealists and Diverse Strivers are most likely to give and thus attend charity events, while New Traditionalists are the most generous of the tribes, particularly with their place of faith.

Not surprisingly, the data for Canada is similar to the global data and 54% of millennials make contributions online including crowdfunding, text and email.  Workplace event/appeal, canvassing (door to door or public spaces) and charity events all came in next from 22%-26%.

How to reach them

Millennials want to engage with non-profits online so make sure you have online social channels available and with content optimized for mobile.

Millennials stay ultra-connected to their peers, which is why peer-to-peer fundraising is very popular with this generation of donors.

Millennials are not as interested in monthly giving as the Boomers and Gen Xer’s, but some will still give monthly, particularly in the church.

More recently, millennials are asking for donations in lieu of gifts for birthdays, end of year holidays and special events. Your organization can benefit from this trend by creating group fundraising options that facilitate and encourage alternative giving.

 

Why Does It Matter?

I mentioned in part one of this series, that knowing your donors and their passions is important because it enables you to tailor you appeals to the right audience for a successful response.  In other words, people are more likely to give.

In order to engage younger generations in a way that is meaningful to them, you are going to have to meet them where they are at.  This means having a robust and active portfolio on social media. 

 

Do a focus group or survey with your young adults and just ask them what social channels they want to communicate with you on.  It might be one you are already using and maybe you just need to tailor your content more to their interests.

Secondly, you are going to have to be ok with them asking questions about why certain things matter in Christianity. 

 

The once, universally accepted knowledge of God and Christianity, has been virtually eliminated in almost all of our cultural systems including education, politics and the legal system. 

 

Christian belief has been displaced from mainstream culture in society. It is merely one option among many now.  

My father used to always say, “we have raised the first generation without any Christian memory.  They don’t know the difference between Jesus and Santa Claus or the Bible and Shakespeare.”  I would add it is in fact two generations now. 

Yet, according to, Casper ter Kuile, a researcher at Harvard University, who shares his honest opinion on the changing shape of American religion and how millennials are creating new forms of spiritual community in his paper called, How We Gather

According to research by Pew, 60% of people in both these “lost” generations (they call them unaffiliated) still believe in God and are in fact looking for spirituality and belonging. 

They are looking for what churches should be offering…spirituality and belonging…yet they are not finding their way to our churches.

Some of the biggest consequences of this identity crisis is that it has left many of today’s church goers uncertain as to what it means to be Christian.  The problem with this is if people do not understand what it means to be Christian, and we never talk about the expectations around what it means to be a part of the Christian faith, our people will struggle spiritually and financially. 

This piece of education is a much bigger issue than most people, including church leadership, want to believe.  If we do not know and understand the teachings of the bible and what it means to live a Christian life how can we possibly then know how to have a meaningful relationship with God.

 

If you can encourage a safe accepting environment in which to question, have deep discussions, and be welcomed no matter what, this is the means to a deeper understanding of our faith.

 

So, let your young people ask those questions, and use it as an opportunity to educate them about Christianity and how we are called to live a Christian life. 

 

You’ll be glad you did!

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.   

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