In our tumultuous society if you are going to be fully funded you need to know what “The Next Generation of American Giving,” means for your church. The Blackbaud Institute just released a new report entitled, “The Next Generation of American Giving” It’s a must read for any church leader that seriously wants their church to continue to be fully funded.
Here are their key findings and my take and what this means for churches…
1. Fewer Americans are giving. Who is surprised at this? What might surprise you is that Baby Boomers are the only generation that did NOT see a decline in giving. Every other generational group saw in the number of people giving to charities. Even as the amount of dollars has gone up the number of people giving has declined.
For we in the church if we don’t work to head off this decline we will be in trouble sooner rather than later. Wise churches have generosity plans that they actually work at and pay attention to. If you don’t have a plan of action it is past time to enact one.
2. The Greatest Generation is in its sunset years. This generation still give proportionally more than any other. Yet their numbers are declining and thus their giving impact. The Blackbuad report contained an interesting quote about this group,
It’s also worth noting that the current philanthropy infrastructure, along with its best practices, strategies, and methods, was built for this generation. As new generations become dominant among givers, it is increasingly important to reconsider whether the founding assumptions that give rise to philanthropy as we know it still hold.
For churches this means we can no longer depend upon this generation to fuel our growth engine. We need to rethink and retool our approaches to giving.
3. Baby Boomers remain the most generous generation. “For those who are waiting for the ascendancy of Baby Boomer donors to pass from the scene, the wait is going to take a
while.” That is their summation of the continued dominance of Baby Boomers. How much longer will they dominate the giving landscape? Blackbuad estimates for at least another five years.
What this means for the church is that it’s two best donor groups have either faded away or are in the process of decline. We must learn how to connect with the next generations if we are to stay financially healthy. Yet, it also means we need to continue to motivate Baby Boomers to think in terms of the legacy they will leave. Estate planning must shift from the Greatest Generation to Baby Boomers. Wise churches will use the remaining time of the Baby Boomers to solidify their futures.
4. Generation X is on deck (and there are way more Gen-Xers than you think). Millennials get all the headlines but Generation X is less than 2 million people behind in terms of size. This key group is NOW in their prime earning years. Generation X is now the second leading generational group in terms of total giving.
Wise churches will keep a focus on this key group as they continue to ascend not only in giving but in leadership of the church.
5. Millennial giving is still a work in progress. 14%. That is what Millennials as a group contributed overall compared to other generations. One positive is that Millennial giving is up by 3% from 2013 so there is hope. The Blackbaud study shows however that the Millennials impact in giving is still many years away.
Wise churches will work NOW to connect Millennials to the life changing work they do. By starting the educational process early by the time Millennials reach the financial security of their older brothers and sisters they will be much more amenable to give to the local church.
6. Introducing Gen Z. Those born 1996 and beyond represent another potential donor group. While presently only making up 2% of giving they none the less could be poised to make a significant difference in the future. Again, we must educate this generation about the value of generosity.
7. Channel proliferation continues, confounding strategy and attribution. Basically the study found that people give in multiple ways. We are used to and like choices. So your church should also offer multiple choices by which people can give.
8. Concern about overhead remains high. The Blackbaud report found that all generations express concern about financial efficiency. The church typically does a better job than anyone in this regard. However to gain trust churches must be open about spending and show fiscal responsibility. One of our hallmarks has been that we do a better job of getting money directly to missions and ministry than most non-profits. We need to continue this if we are to keep the confidence of donors despite which generation they come from.
Let’s be like those from the tribe of Issachar, “who understood the times and knew what Israel knew what Israel should do.” Understanding our world is a key to reaching our world.
Mark Brooks – The Strewardship Coach