Millennials: The Future of Your Nonprofit’s Financial Health

millenials are the financial future of your nonprofitMany nonprofits are looking forward to the new year and turning to nonprofit accountants in Fairfax, Northern VA and Washington DC to plan their futures. If you are a leader at such an organization, and looking for donors, you may be overlooking one key resource: millennials. This year an estimated 87% of adult millennials — defined by the Pew Research Center as those born between 1981 and 1996 — donated money to a nonprofit over the last year and most of these donations were sums more than $100.00. What’s more, this year’s popular ALS ice bucket challenge raised over $100 million dollars for its cause: an achievement largely attributed to efforts from millennials.

Many from this generation do not have full-time employment and are facing lower salaries in comparison to cost of living. However, this has clearly not deterred young adults from giving. Therefore, it would be wise to build relationships with this demographic as its earning potential grows. Over 80 million currently fall within this age group and they will greatly outnumber other generations by 2030. When planning financial strategies with your nonprofit accountant in Northern VA, consider how best your organization can relate to this group and its culture.

This generation is extremely diverse and, thanks to the information age, knowledgeable and interested in a wide number of subjects. Millennials are more likely to spread their donations around and give smaller sums to more causes. Therefore, it is imperative that once you have a donor’s attention, you cultivate that relationship so that your donor continues to give. Start with small encouragements, such as asking them to “like” a social media page, attend a free local event, or donate five dollars using an online giving platform like indiegogo.

Also, don’t discount their networks, especially as they become more involved. Aside from social media, millennials have a wider network of peers because they put more emphasis on travel and are more likely to have a tertiary education. Even if someone is not a direct donor source for you, he or she may have friends who can contribute goods or services while working for your organization. If someone involved in your organization outsources help for you, be sure to know the guidelines surrounding services from personnel of an affiliate.

Above all, as any good nonprofit leader knows, staying true to your mission is key. Donors from this age group wish to connect with those passionate about similar issues. If they see you share their excitement around a cause, they are more likely to give to your nonprofit.

For more information on planning for your nonprofit’s financial future, read our other blog posts and contact a nonprofit accountant in Centreville, Fairfax or Northern VA today.