Neil Howe
10/01/2005
As members of Generation X prepare to take over philanthropic duties from their Baby Boomer parents, well-established charitable organizations must adjust their marketing strategies if they want to keep the funds flowing.
Each generation has its own unique approach toward giving that reflects its upbringing and resultant core values. Gen Xers, born between 1961 and 1981, grew up during the consciousness revolution that began with urban riots and campus fury and swelled alongside Vietnam War protests and a rebellious counterculture. As such, they seem to share a lack of trust in organizations. They have a notoriously low participation in the electoral process. They do not show up at public meetings and they do not care much about national news. For them, civic activity is performing hands-on work in their neighborhoods. Gen Xers can often be seen ladling stew at a soup kitchen or building homes with Habitat for Humanity. Before giving their money or time to a cause, they want to meet the people they are going to help.
This emphasis on performance-based philanthropy will push large charities to retool themselves. They may want to establish smaller or decentralized offices and concentrate on local issues. Instead of boasting about a huge pot of donations, they may divide up their projects in order to explain to donors how one cause differs from the other and what form of help is required. Gen Xers want to see actual data—results and reliable, comparable information on the efficacy of nonprofit activity. Generation X donors are all about transparency.
Gen Xers differ from their parents in that Boomers generally do not ask questions when they give. For Boomers, born between 1943 and 1960, values and ego come first. Boomers desire cultural change, and they want their values expressed through their causes. At the same time, they want their names on these projects. For example, they may give to a foundation that will set up an account in their name and allow them to make recommendations on the foundation’s function. Bill Gates and Michael Milken are proponents of this so-called expressive philanthropy.
In contrast, not many Xers participate in formal philanthropy. They see it as an older, alien environment. For them, philanthropy should be more of an investment that needs to be leveraged by creating incentives for people to behave differently. In providing assistance to developing countries, for example, their Boomer parents would have no second thoughts about donating hard assets.
Social Capitalists
Xers, on the other hand, are entrepreneurial. They
would offer scholarships for people in those countries to study in the United
States who would then later apply their knowledge in their communities. For
them, this approach achieves better results at a lower cost. This explains a
November 2003 study by Richard Steinberg and Mark Wilhelm, which found that Xers
are contributing significantly less at the same age (when compared to other
generations) as a share of their income.
Despite their skepticism, Xers bring
to philanthropy a strong commitment to family. This will fuel a continued growth
in family philanthropy as Xers put their trust in their own family’s ability to
make giving decisions, much more than they would in government or another
entity. With the help of donor-advised funds, this trend should spill over to
the next generation: the Millennials.
Millennials, born after 1982 and just
starting to graduate from college, are volunteering more than any other
generation. Unlike Gen X Millennials are more involved in national causes.
Census Bureau data released in May shows that voter turnout among those under
age 25 jumped 11 points, from 36 percent to 47 percent, between 2000 and 2004.
The increase by the youngest voters, ages 18 to 24, was higher than any other
group, making them a significant and disproportionate factor in the overall rise
in the number of Americans going to the polls.
Their structured and
mission-focused upbringing will spur further changes in nonprofit activity. For
large charities, the good news is that Millennials will have more faith in them
and a renewed trust in government. In the meantime, however, these groups will
need to confront the challenges posed by Gen X’s skeptical approach toward
formal philanthropy.
 | Neil Howe is an economist, historian, demographer and authority on generations in America. |