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.