An Open Letter to Every Donor Everywhere

Dear Donor, 

It’s that time of year. Yes, the time of year where walking out and opening the mailbox affords you a real chance of opening a real card! Christmas and holiday cards are being sent and received. This is the time of year where merriment and cheer abounds.

But most of all, this time of year we celebrate the birth of our Lord Jesus Christ. 

We celebrate the wonder, mystery and fulfillment of hundreds of years of prophecy being fulfilled after hundreds of years of God’s people waiting for their Savior. It is a wondrous time of year to be quiet and reflect on the beauty of it all as a Jesus follower. 

His birth and life on Earth is truly one of the greatest gifts God could have given us. In His grand and lavish generosity, God lived His character out before us so that we might truly know Him.

It is in the spirit of great generosity, we reach out to you today. We know as a donor, you’re probably receiving all the end of year letters from your favorite nonprofits, ones you’ve supported in the past, and maybe some organizations you don’t support but magically got added to their mailing list! Does it feel overwhelming? 

That’s a rhetorical question.. we know it does. 

Being asked for more while you’re already doing all the things, juggling the Christmas shopping and trying your best to focus your heart on why we celebrate Christmas. We get it. We are working parents, homeschooling our two boys and juggling all the things just like you.

So we want to take a moment to be as frank and transparent as to why you keep getting these letters every December, year after year.

Does an end-of-year gift really make that much of a difference? Or are organizations just trying to get a little more to pad the budget for January?

The answer is… yes, your year end gift makes a real difference and no, organizations are not just trying to pad budgets!

It’s estimated that 30 percent of annual giving for a nonprofit happens in December. We’re not just hoping for more giving and generosity from our wonderful partners. We truly rely on it. How our nonprofits exist and engage effectively in our missions directly rely on the giving received in December. 

Ten percent of all annual donations come in during the final three days of the year. Would it be nice to understand a budget and forecast next year’s planning ahead of time? It sure would. But are we grateful for last minute gifts? Absolutely!

When we reach out, we do so in unity and the same oneness of our God who made us generous like Him. We know you share a heart and a passion for changing lives in the same way we do. And we want you to be part of that! 

When we reach out, we’re doing so with the understanding and knowing, based on years past, that maybe you’ve meant to make a gift. But life got busy, and you need a reminder.

We rely on God first and foremost to fulfill our missions. But knowing the realities of December giving for so many, we know He uses this month to spur on His mission. 

Our hope is that when you receive that end of year letter this year from your favorite nonprofits, maybe you’d take a moment to pray and consider whether you can make a year end gift. It might be a large gift, but maybe it’s not. Maybe it’s one given with a cheerful heart and a whole lot of prayer that God would multiply your faithful gift. 

We work with a wide range of nonprofits that seek justice, provide for the poor, spread the gospel of Hope. And on behalf of organizations, everywhere, we are so thankful for your generosity and giving all year! We are especially grateful for your December gifts that truly give a stable financial footing to our missions and the work on the ground.

May God bless you with His peace and joy this Christmas. May you know His ever-flowing generosity toward you always!

Merry Christmas and Happy New Year,

Josh and Kaitlin Saenz

Compel You 

Where is Gen Z going with Giving?

Understanding Generation Z Donors: Trends and Insights for Nonprofits

Gen Z… This generation freely uses “bet” instead of yes, confusing everyone older than them.  This generation unashamedly asks Siri questions like she’s the expert of all things. This generation, at least in America, doesn’t know life without social media or a smartphone in hand. If you’re reading this, we’re betting you’re not from Gen Z and this generation seems quite different than yours.  

Gen Z is currently the youngest generation of adult donors. The youngest of Gen Z is currently just 12 years old and the oldest is 27. This generation is stepping into the philanthropic world with unique perspectives and behaviors that differ significantly from their elders (yes, that’s us).

While a portion of this generation is still growing up, the other portion has reached adulthood. This portion is young enough to be considered testing out their belief systems as it relates to giving. There’s so much for us to learn about this generation as they discover what philanthropy looks like and means for themselves. Only time will tell. So for now, let’s look at this coming-of-age generation through the lens of “what could their impact on charity be?” 

Economic Realities Shape Philanthropic Expectations

Gen Z has come of age during challenging economic times, a worldwide pandemic, and social unrest. Like each generation before, their world influences their approach to giving. Aimée Laramore from the Johnson Center highlights this connection in this online article, "the reality of their lives demands that the philanthropic sector engages their giving with an understanding of how their economic realities shape their expectations and their philanthropic behavior." 

On top of these national and global phenomena, Gen Z is navigating student debt, job instability, and rising living costs. An Experian survey (2023) found that 61% of Gen Zers say they are “somewhat or very financially dependent” on their parents. The majority of this generation likely doesn’t have much to financially give–yet. This appears to make them cautious about financial contributions, but it doesn’t diminish their commitment to causes near to their heart.

Diverse Forms of Support

Data shows that Gen Z gives financially, but it’s not much as many are still constrained by early careers and tight budgets. Unsurprisingly they turn to leveraging their time, talent, testimony and ties instead. According to the Johnson Center, next-gen donors are three times more likely than older donors to engage in advocacy for an organization or cause and 20.3% of Gen Zers report volunteering in a formal capacity. 

Members of Gen Z contribute in ways such as:

In-Kind Donations: Gen Zers often prefer to give items rather than cash. This could be anything from clothing for a local shelter to supplies for community initiatives.

Encouragement and Engagement: They actively promote causes by encouraging friends and family to get involved, amplifying their support through personal networks.

Volunteering: Many Gen Zers are willing to dedicate their time to volunteer. A survey by Bloomerang found that 51% of Gen Z donors also volunteered their time. This reinforces the idea that their commitment extends beyond monetary contributions. It’s hard to tell yet whether this will be a defining characteristic of this generation or if it’s more attributed to their stage of life, seeing as ages range from 12-27.   

Social Media Advocacy: Sharing social media posts from their favorite nonprofits is a popular way for Gen Z to spread awareness and engage their followers. 

Deep Connections to Causes

Unlike previous generations, like Baby Boomers, who may have prioritized larger, established organizations, Gen Z seeks authenticity and relatability. They value personal connections and often support nonprofits based on recommendations from friends, family, or peers. This social aspect of giving is critical—Gen Z wants to feel personally connected to the organizations they choose to support.

When surveyed about whether they conduct research on a nonprofit before donating, adult Gen Zers were the most likely to vet an organization with 77.9% saying yes compared to the next highest group, Gen X, at 75.6%. 

Social Media or Social Networks?

When it comes to discovering nonprofits, Gen Z primarily relies on their social networks, including family, friends, and peers, along with social media platforms like Instagram and Tik Tok. 

This generation has grown up with influencers and social media. So when it comes to social media, they are intuitive, well-versed and understand its potential for good. This can mean making money with it or using social media for advocacy. Granted, some of this generation may not be old enough to even be using social media. But if they get excited about something or a cause, watch out! They might blow up the internet with it. 

Social media serves as a tool for discovery but also as platforms for engagement. According to the Generation Giving survey by Bloomerang, Gen Z is the generation most excited to donate using digital wallets. This reflects their comfort with technology and online transactions compared to older generations. 

In contrast to their preference of digital giving, in-person and hybrid fundraising events resonate strongly with Gen Z, who appreciate the opportunity to connect directly with causes and fellow supporters. This might surprise older generations because it’s an easy assumption to think Gen Z prefers virtual interactions. That’s not entirely true. 

Sure, they’ve grown up with phones in their pockets, Tik Tok, and the world at their fingertips. But it’s strong evidence to prove this technology-centric life doesn’t replace that God-given desire for face-to-face, real relationships. Gen Z desires community. 

Engaging Your Gen Z Donors

As Gen Z continues to mature and become more prevalent with their philanthropy, keep trying to learn and understand them, even you really just don’t get them. Engage them in authentic, relatable ways. Make sure your messaging reflects that you understand their economic realities but see their heart for making a difference. Don’t assume they value digital connection over personal connection. For a generation where authenticity and connection are more valuable than ever, embracing these values will help your nonprofit catch the attention of Gen Z donors and cultivate lasting relationships with them. 

Millennials and Philanthropy: How This Generation is Revolutionizing Giving

Lazy. Entitled. Financially irresponsible. Job-hoppers. Screen-obsessed. Naive. 

Do these stereotypes come to mind when you hear the term Millennial? Though sometimes stereotyped in a negative light by older generations, Millennials—those born between 1980 and 1996(ish)—are shaking up the nonprofit world with a blend of tech-savvy and heart-driven generosity. 

Like each generation, Millennials are shaped in many ways by the culture that surrounded them in the years they were born and grew up, for better or for worse. If you’re just catching the buzz around Millennial giving, you’re in for a treat as we dive into how this generation is changing the game in philanthropy and the heart behind what fuels their giving. 

Generosity in Action

First up, let’s bust a myth: Millennials aren’t always glued to their screens. In 2023, 84% of Millennials made charitable donations. And it doesn’t stop there. On average, they support five different nonprofits each year, focusing on causes that light a fire in their hearts. Whether it’s environmental sustainability, education, social justice, or healthcare, these causes are as diverse as the generation itself.

More Than Just Spare Change

Millennials are also more than just check writers. They’re all about rolling up their sleeves and getting work done. The Corporation for National and Community Service (AmeriCorps) reported that Millennials contributed roughly 1.5 billion hours of volunteer service in a year and that volunteer service is worth an estimated $36.7 billion! From organizing local clean-ups to mentoring youth, they’re turning their passion into action.

Tech-Savvy Impact

This generation is unique as it holds men and women who grew up with memories of life before personal computers, cell phones, the Internet and those who can’t remember life without any of those. Millennials are using technology to supercharge their philanthropy. Platforms like GoFundMe, DonorsChoose, and Kickstarter make it easy to find and support specific projects. Social media is their megaphone, amplifying their efforts and raising awareness for causes with just a few clicks.

Causes That Matter

So, what gets Millennials fired up? Think equality and inclusion, mental health awareness, environmental conservation, and animal welfare. Their giving reflects a deep commitment and desire to create positive social impact, prioritizing issues over institutions. According to the Millennial Impact Report of 2023, Millennials care more about social issues rather than the organizations, using their collective voice, and supporting others and the greater good over partisanship. 

It’s less about the organization and more about the cause—something that’s reshaping how nonprofits engage with this generation. 

Transparency Is Key

Millennials crave transparency. They need to see where their money goes and how it makes a difference. Over 90% of Millennials said they’d stop giving to an organization if they lost trust. Transparency about finances, operations, and impact isn’t just a nice-to-have; it’s essential for building lasting relationships with this generation. In a reflection of that trust, more than three-fourths said they would stop giving if they weren't told how their contributions help, according to the Millennial Impact Study.

Creative Financial Solutions

Student loans and rising housing costs? No problem. Millennials are masters of creative giving. They’re embracing monthly donation programs, workplace giving campaigns, and peer-to-peer fundraising to support nonprofits regularly, despite financial constraints. The number one influence on millennial engagement comes from interaction with their peers. Don’t be afraid to invite this generation into giving through their community–it’s part of who they are. And their commitment to giving is strong, even if the dollar amounts aren’t always huge.

Speaking Their Language

To truly engage Millennials, you need to recognize their multifaceted contributions. Though Millennials are not yet giving in high dollar amounts, they are engaged in causes they are passionate about. Finding ways for them to contribute their time and talents toward causes they believe in can wield great results for your organization. It’s all about harnessing the energy and enthusiasm this generation holds for the greater good. 

Volunteering five hours is as valuable to a Millennial as a monetary donation. This attitude reflects their desire to build authentic, personal relationships with the people and causes they serve. Honor their time, skills, and activism, and you’ll build a meaningful connection. You’ll also establish trust as you show them you value not just their treasures, but their time and talent too. 

Looking Ahead

As Millennials continue to advance in their careers and build their wealth, their financial influence on philanthropy will only grow. Their passion for transparency and legitimate social impact, along with their unique blend of generosity, activism, and tech savviness will continue shaping the future of Christian nonprofits. This dynamic generation's commitment to people, diverse causes and innovative giving methods is transforming communities. Engage your Millennial donors and get them excited about your cause. Don’t underestimate the difference the impact their support can make for your mission!

Sources: https://www.themillennialimpact.com/sites/default/files/reports/MIR_KeyTakeaways-2.pdf

https://www.americorps.gov/sites/default/files/document/Volunteering_in_America_Demographics_508.pdf

https://www.themillennialimpact.com/sites/default/files/images/2018/MIR-10-Years-Looking-Back.pdf

Loving the “ask”…

Imagine putting months of work into planning and gathering donations for a silent auction fundraiser. You put in the leg work–collected great auction items, set starting bids, strategically planning everything according to a specific fundraising goal.  You carefully invited guests and supporters to participate. The big day arrives and everyone eagerly arrives. Much to everyone’s surprise, there’s no way to bid. 

Does this sound downright insane? The answer is most definitely a yes… because nobody does this!

Take this unbelievable scenario and instead say the event is a large fundraising gala. Imagine planning, strategizing and organizing this event for months. You carefully budget to rent the fancy venue, purchase catering, and book a fantastic keynote speaker. The night surprisingly runs very smoothly without any major mishaps. Guests enjoy a fun evening, learning about your cause and being inspired by your nonprofit’s impact. At no point during the event do you ever actually ask your guests for their financial support. Your guests leave with good feelings and more awareness, but you end the gala with no more funds to fuel your mission than you had before. 

Can you picture this scenario? 

.….yes. It’s nearly the same scenario, but this one is unfortunately more believable because it’s not uncommon. 

Jim Dempsey, a veteran in the nonprofit world who’s served as Senior Development Director at Cru, states on his podcast that he suspects 85-90% of Christian nonprofits do this at some point. It’s not unreasonable to believe this number when you consider how many small, even medium-sized nonprofits, operate without designated donor development teams or even fundraising experts.  

Still, why would an organization plan such an event with only high hopes for raising funds and not ask for donations? There are a few typical reasons behind the phenomenon of nonprofit organizations failing to make an “ask”, even when most people would expect one.  

Behind the phenonemon

Uncomfortable with money talk

Discussing money or finances can be a hush-hush topic, especially in church.  Scripture doesn’t actually follow this example, though. In the New Testament, Jesus and Paul are very comfortable talking about money–not as a means in itself but as a way to glorify God. If money is used to glorify God, it’s worth talking openly about! 

Fear of rejection

The fear of hearing a "no" can paralyze even the most seasoned nonprofit leaders. They see a no as a permanent closed door or equate a “no” with absolute rejection. In reality, a person may love your cause but say no for a multitude of reasons. A no is not always a rejection. 

Sometimes, a “no” is timing related and could be more a not-right-yet. Other times, the no is a moment of clarity for your donors. If after being asked for a major donation, they realize they truly don’t align with your mission and aren’t passionate about advocacy, that moment of realization is actually good. God may be using that moment to steer their “yes” elsewhere. That is okay for you and for them! 

Inexperience in soliciting donations

There’s an art to making the ask–what to say, how to phrase it, when to ask. If you don’t feel comfortable in your fundraising experience or knowledge, you might avoid asking for donations if you can help it. Kimberly Lewis of Goodwill Industries of East Texas, Inc. says in this Forbes article that a main reason why donors don’t give is that they are not asked. 

It’s common for nonprofit leaders wearing many hats, carefully growing and existing off limited budgets, to not yet have an expert solely dedicated to donor development and fundraising. In this void, organizations can lack a solid donor development plan or even just lose track of the last time a newsletter with a request was mailed. This can all result in simply not asking supporters to donate. 

Why we embrace the ask:

Call us weird, crazy people, out of sorts.. Whatever you wish. At Compel You, we love making the big ask. We find joy in it! We like to remind nonprofit leaders that you are placed in positions of stewardship. Yes, using funds and resources within the organization is important for wise stewardship. But you are set in a unique position to also steward discipleship opportunities around generous living. 

Extending invitations to partner with your organization by way of significant financial support is offering people opportunities to sacrificially give. It’s inviting brothers and sisters-in-Christ into steps of faith and surrender–allowing them to not only see the bigger picture of your mission, but experience being part of it. 

The Three Asks We Make

Not every “ask” in the donor development world is centered on financial giving. When working for our clients, we reach out to donors on their behalf and typically have conversations around one of three types of asks that include:

1. Increased Giving: Encouraging supporters to increase their financial commitment, when appropriate, to the organization, allowing for greater impact and sustainability of programs or initiatives.

2. Referrals: An ask to share names or refer other like-minded individuals and organizations in their network that we can reach out to, expanding the reach and influence of its mission.

3. Advocacy: An ask for advocacy where donors almost operate as fundraisers to crowd-fund and rally people together, championing the organization and using their influence within their sphere.  

Each of these types of conversations are crucial to building thriving, engaged donor bases. Neglecting the “ask” only hurts fundraising efforts, confuses your supporters, and limits your ability to sustain + grow your mission. 

If you find yourself overwhelmed with fundraising goals and would rather bury your head in the sand rather than make these “asks”, it’s time to lighten your load with expert help.

Schedule a discovery call with us today to learn how Compel You can help you grow your Christ-centered mission and alleviate stress around fundraising. Our creative fractional approach to donor relations and fundraising strategies keeps donors engaged and giving to Christ-centered organizations–at a fraction of the cost. 

If having conversations around financial support and increased advocacy stirs up dread inside, we encourage you to look at them through different lenses. View these requests as invitations into partnership and community. When your people catch a vision of how God is moving through your organization’s work, it’s a blessing to them when they’re asked to be included. 

Opening the Door to Advocacy

Asking donors for referrals is not about getting more donations. Not fully, anyway. Seeking referrals is about opening new conversations around advocacy. Inviting your supporters to move from the act of giving financially into also using their voice and sphere of influence is a powerful way for them to become fully engaged in your mission. This is the real value of asking for referrals. 

So how can you open these conversations with your givers?

Here are 7 ways to be thoughtful and intentional in how you ask for donor referrals.

Ask Creative Questions:

Remember, you are opening the door to a conversation about advocacy. You’re not just making point-blank requests to get additional funds from new donors. Ask next-level questions, like these, that encourage them to dive deeper into your mission:

Who else in your life needs to know about the mission? 

What would it look like to not only use finances to support our mission, but what would it look like to open your network and invite them into advocacy with you? 

What could it look like to be a host and open your home, inviting others to see the mission?

Does anyone else you know share a heartbeat for similar causes? 

Would you mind introducing me to your pastor so I can start a conversation with them about our cause? 

Could you introduce me to your employer so I can have a conversation around gift-matching? 

Who to Ask:

Think about whether it’s beneficial to ask all your donors for referrals or a select group. According to donorbox.org, monthly recurring donors give 42% more than one-time donors. If you have a segment of regular givers, these are people believing in and dedicated to your mission. Often this is a good sign you’ve built a strong relationship with these donors and they may be the ones most open to conversations about sharing the cause. 

Timing Is Important:

Choose the right moment to ask for referrals. (Have you answered these 3 questions to see if your timing is right?) Maybe you’ve just finished a critical fundraising campaign so to avoid bombarding your donors with more requests, you plan your ask for next month. Or perhaps you recently held a successful, engaging event that energized your donors! They left feeling excited to advocate more for your mission. Look for opportune moments when your donors are particularly engaged and encourage them to invite those in their network to learn about your cause. Be intentional in your approach, but don’t overthink it!

Make It Simple:

Simplify the referral process. Make it easy for them to share more about your organization by offering clear instructions and resources. Consider using a QR code on printed mailings. Did you know that around 47% of Gen Z and Millennial donors use QR codes on direct mailing to support their favorite charities? Offer pre-written email templates or language for social media that they can quickly add their own touch to. Go ahead, get creative! (Or reach out to us for a free call to see how Compel You can help.) 

Acknowledge and Reward:

Regardless of whether referrals lead to new contributions, acknowledging a donor’s effort shows your sincere gratitude and reinforces their importance to your organization.  If their referral resulted in a new connection or relationship, let them know! Did their referral lead to a partnership? Give credit where it’s due. Acknowledgment furthers a person’s feeling of belonging in your mission.

Respect Privacy:

When asking for referrals, respect the privacy and confidentiality of your donors and their contacts. Assure donors that their information will be handled with care and you will only reach out to referrals with their consent. Respecting boundaries is crucial for keeping hard-earned trust and integrity in your relationships. Give them a chance to reach out to their contacts first if they’d like. This shows you truly care about their relationships, and you’re not just asking for a quick, free donation. 

Follow Up, Stay Connected:

If a donor shares some referrals, follow up promptly with the referred individual or organization to introduce them to your cause. At the same time, keep your donor informed about the progress of referrals and any resulting engagements or donations. This shows your appreciation for them stepping into advocacy. Don’t go radio silent. Your communication truly matters here! Even if a donor doesn’t reply, there’s a high likelihood he or she is still reading your messages. Regular communication demonstrates your commitment to transparency and accountability.

Asking for referrals is a valuable strategy for expanding your support base and amplifying your impact. But even more so, you’re inviting supporters to move beyond using just their dollars; you’re inviting them to put both hands in rather than one. Thoughtfully approach how you ask for referrals and you can build a strong community of advocates who are truly passionate about advancing your mission for Christ!