The Generational Shift: Navigating the Future of Donations
With $30-84 trillion in wealth set to change hands, nonprofits must adapt their strategies to engage a new wave of givers.
On the surface, the most recent reports on charitable statistics in the U.S. paint a rosy picture for nonprofit organizations. In 2023, Americans donated over half a trillion dollars, with the majority ($374 billion, or roughly 67% of all charitable giving) coming from individuals. Similarly, 85% of affluent households maintained or increased their giving, while corporations and foundations are giving more than ever.
However, nonprofit organizations face a looming shakeup in the status quo as younger generations are poised to inherit an eye-watering $30-84 trillion—the largest transfer of generational wealth ever—in the coming decades and become the new top givers. The current average age of repeat donors is 64, and the reliable methods that nonprofits use to appeal to these Baby Boomers have not been as effective with Gen X, Millennials, and Gen Z.
It's not just that the average donor demographic is changing in America, either. At last count, there were over 1.8 million 501(c) organizations, so not only is there more competition for donor dollars amongst classic nonprofit organizations, but they're also competing with the new wave of donation sites like GoFundMe, Venmo, and Kickstarter for relevancy and limited donation resources.
This is why it's vital for nonprofits to have a fundamental understanding of the values, core beliefs, and motivations of the new generations they'll be relying on now rather than later. This is especially important if they want to reach Gen Z and Millennials to help create long-term repeat donors. To this end, Grow Progress conducted an Audience Understanding Survey to learn about the values, worldviews, and donation habits of 18 to 54-year-olds.
How We Tested
Using the Grow Progress Audience Understanding Survey tool, the team surveyed 600 Americans between the ages of 18 and 54 to better understand their recent donation history to nonprofits, mutual aid funds, and crowdfunding.
Survey respondents were asked: "Which of the following best describes any donations you've made over the last 12 months?"
- I have not donated to any nonprofits or crowdfunding campaigns
- I have donated to one or more nonprofits and one or more crowdfunding campaigns
- I have donated to one or more nonprofits
- I have donated to one or more crowdfunding campaigns (such as a GoFundMe, mutual aid fund, or sending money to someone in need via Venmo or similar means)
Afterward, respondents explained their selection through open-ended questions. Results were gathered in less than 48 hours.
Topline Results
Overall, 39% of participants said they had not donated in the last 12 months. Of the 61% who had donated, 36% donated to nonprofits, 14% donated to crowdfunding, and 11% said they donated to both nonprofits and crowdfunding.
Key takeaways on how 600 18-54-year-old Americans donated in the past 12 months:
- 39% did not donate
- 36% donated to nonprofits only
- 14% donated to crowdfunding only
- 11% donated to both
The fact that 61% of participants had donated in the last 12 months and that 47% had donated to nonprofits suggests younger generations are willing and able to support causes they believe in.
However, nonprofits must understand the motivations and beliefs within each key participant category and how different subgroups operate to persuade more people to donate, especially those who donated only to crowdfunding.
Demographic Highlights
The research team examined demographic breakdowns by age (18-34 and 35-54), annual household income ($0-49k, $50-99k, and $100k+), and gender.
Key observations included:
- Respondents under 35 were less likely to donate; those who did were more likely to be crowdfunding-only donors than those aged 35-54
- Higher-income respondents were more likely to donate across all categories
- Women were less likely to donate; when they did, they were more likely to donate to crowdfunding than men who donated
Age
Among 18-34 year olds:
- 43% did not donate
- 10% donated to both
- 16% only donated to crowdfunding
- 31% only donated to nonprofits
Among 35-54 year olds:
- 36% did not donate
- 11% donated to both
- 12% only donated to crowdfunding
- 41% only donated to nonprofits
The younger cohort (18-34) was less likely to donate overall and less likely to donate to nonprofits. They showed slightly higher crowdfunding donation rates than their older counterparts.
Income
Among $0-49k Household Income:
- 49% did not donate
- 8% donated to both
- 12% only donated to crowdfunding
- 31% only donated to nonprofits
Among $50-99k Household Income:
- 33% did not donate
- 11% donated to both
- 15% only donated to crowdfunding
- 42% only donated to nonprofits
Among $100k+ Household Income:
- 9% did not donate
- 23% donated to both
- 20% only donated to crowdfunding
- 48% only donated to nonprofits
Those earning over $100k were most likely to donate in any form and were the only income group more likely to donate to both nonprofits and crowdfunding than just crowdfunding alone. Nonprofits received the bulk of donations across all income brackets.
Gender
Among Women:
- 46% did not donate
- 12% donated to both
- 12% only donated to crowdfunding
- 31% only donated to nonprofits
Among Men:
- 32% did not donate
- 10% donated to both
- 17% only donated to crowdfunding
- 42% only donated to nonprofits
Men were more likely to donate and to donate to traditional nonprofits at higher rates. When women donated, they showed greater propensity toward crowdfunding than men.
Values Segment Findings
The team analyzed each donation category (non-donors, crowdfunding-only, nonprofit-only, and both) examining demographics, values, and stated reasons for giving patterns.
This analysis used Grow Progress Value Scores, where respondents rate how 17 universally held human values (Achievement, Equality, Patriotism, etc.) apply to them. Results are calculated into Value Segments—groups sharing similar values, personality traits, psychographic qualities, demographics, and political attitudes. Examples include Anti-Authority Progressives, Disengaged Doubters, and Religious Conservatives.
Open-ended responses asked: "Why did you answer the way you did when asked: Which of the following best describes any donations you've made over the last 12 months?"
Non-Donors
Demographic Highlights
- 70% make under $50k annually
- 55% have a high school education or less
- 38% did not vote in 2024
- 38% are unsure of their parents' donations or report parents did not donate to charity
Values Highlights
Open-Ended Responses
Some respondents cited financial hardship as barriers to donating. One stated: "Times are tough, we're barely making it by. I would love to donate but don't have extra money to donate and honestly, I'm not sure where my donations would really go."
Many mentioned finances when asked about significant everyday challenges, with several referencing homelessness. Common responses included variations of: "I can hardly afford to keep me going, let alone donate."
When asked about social or political issues they cared about most, respondents mentioned immigration, the economy, inflation, racism, healthcare, and abortion.
Nonprofit and Crowdfunding Donors
Demographic Highlights
- 31% make over $100k annually
- 34% are Latino
- 43% attend church weekly
Values Highlights
Open-Ended Responses
This group's top social and political issues included healthcare, the economy, climate change, immigration, and racism.
One donor prioritized "Impact, transparency, personal connection, urgency, and alignment with my values." Others mentioned faith-based motivations, citing donations to churches and religious organizations.
Many conducted research before deciding where to donate. Effectiveness and direct impact were priorities. One respondent explained: "I like places where my donations go straight to helping people."
Some donate to locally heard causes or friend recommendations; a few mentioned emotional connections. One noted: "I also support friends and family or other stories that stir up my heart when I see a GoFundMe."
Crowdfunding Only Donors
Demographic Highlights
- 55% are under 35
- 58% are men
- 22% make over $100k (versus 15% of the whole sample)
Values Highlights
Open-Ended Responses
Respondents reported hearing about causes primarily through friends and social media. Some seek the most urgent needs by reading GoFundMe descriptions.
One stated: "I donate to the ones that give the best explanation." Another shared: "People are going through a lot. I can help them get that surgery or get that pressing need sorted out." A third explained: "I have donated to GoFundMe because I have seen certain individuals' stories and mishappenings, and I was compelled to give."
One respondent described donation patterns as spontaneous: "I typically make occasional donations to causes I believe in, but I don't make regular or large contributions. My donations tend to be more spontaneous and based on specific needs or events."
Respondents mentioned supporting Palestinians, individuals facing medical bills (cancer treatment), people who lost homes in recent fires, and funeral expenses.
Nonprofit Only Donors
Demographic Highlights
- 49% have a bachelor's degree or higher education
- 57% are men
- 41% say they donate to the same causes as their parents
Values Highlights
Open-Ended Responses
Like other segments, respondents cared about the economy, healthcare, climate change, and immigration. Top-mentioned organizations included the Salvation Army, Red Cross, Goodwill, St. Jude, hunger-addressing organizations, Habitat for Humanity, and UNICEF.
Many donate locally (particularly to homeless shelters), to churches, and faith-based organizations. Several mentioned reviewing organizations' mission statements. One stated: "I just choose which one I feel needs money at the moment. If I think I've heard they're struggling, I give towards that."
Another mentioned personal and emotional connection: "I have had family members with Alzheimer's, and I hate to see people go hungry since I know what it feels like." Another shared: "If I'm inspired by their cause and see they want to do good in the world, I'll donate."
Conclusion
As historic wealth transfer shapes donation's future, nonprofits must pivot to engage younger generations effectively. The encouraging finding: 42% of survey donors reported engagement with causes since young adulthood—but missions, messaging, and brand must resonate with young people whether or not they're actively giving.
Understanding values and preferences is essential for nonprofits to maintain relevance in a crowded charitable landscape. By adapting strategies now, organizations can harness emerging donor potential and secure vital long-term support.
Future research could include Rapid Message Testing to identify persuasive messaging for crowdfunding-only donors or non-donors. Research patterns suggest personal stories resonate, creating desire to help individuals—observed in this case study and a recent one on wildfires.