It won’t be long before Baby Boomers cease to dominate the landscape of philanthropy and Millennials take their place as the most populous generation. With this significant change on the horizon, what are you doing today to build a bridge to the future of giving?

With a population of 76.4 million members, Baby Boomers have long provided the economic power behind nonprofit causes. But as of 2015, Millennials have surpassed them boasting 83.1 million members, and within that same year, more Millennials are now working than Baby Boomers.

Another factor in this perfect storm is that Millennials will be the primary recipients of the largest transfer of wealth in the history of humankind. An estimated $41 trillion will be transferred to Millennials over the next 25 years.

“The times, they are a-changin’,” and Millennials are set to receive the baton as America’s next leaders in philanthropy.

Millennial Giving Behavior

The good news is Millennials are undeniably generous. According to The 2015 Millennial Impact Report, 84 percent of Millennials donated to charity in 2014. This show of generosity is proof that they have a heart for social causes, much like their forebears.

The bad news is that many nonprofits, ministries, and churches will not benefit from the generosity of Millennial donors, at first. There will be a steep learning curve as most nonprofits work hard to unlearn everything about cultivating and soliciting gifts among Baby Boomers.

This is because Millennials give for different reasons and in different ways than their predecessors.

This Business Connect article points out some great examples:

1. Millennials Are Always Digitally Connected
2. Millennials Are Always Sharing Information With Others
3. Millennials Care About Results More Than Institutions
4. Millennials Resonate With Stories
5. Millennials Monitor Social Media For Causes
6. Millennials Value Transparency

This list alone reveals a vast difference between the way Millennials and Baby Boomers approach giving. And I’m sure there are more nuances to be found as Millennials continue to rise to economic power.

There’s a massive shift coming for the world of nonprofit leadership and fundraising.

This change isn’t necessarily a bad thing. But it will cause instability in annual revenue for many organizations as they make the internal changes necessary to raise funds in the new market.

Becoming a Startup… Again

Organizations that will thrive during this historic shift in philanthropy will be those who are as adaptable and innovative as a startup organization.

To thrive during the shift to Millennial support, organizations must be as agile as a startup. Click To Tweet

Even if your organization has been in action for decades, today it’s a whole new giving landscape with all new rules. It’s like becoming a startup organization all over again. You can’t take anything for granted.

You’ll have to hire new people with new ideas. You’ll have to make room in your policies and annual budget for experimental fundraising strategies, like digital fundraising. You might even have to rebrand.

The real challenge to all this is that every internal change you need to make will require time and funding (think years, not months) throughout the process to generate significant revenue. You’ll need a cash runway like a startup entrepreneur.

How will you build your cash “runway” you’ll need to make the shift?

Savings is an option. But most nonprofits don’t save money because every penny is devoted to the cause. A more realistic solution is expanding your asset-based and legacy giving strategy.

Asset-based gifts & #plannedgiving can sustain #nonprofits as they transition to Millennial-based support. Click To Tweet

Asset-based gifts and estate gifts can bring stable, recurring income to fund your daily operations during the funding gap during this massive shift in your donor demographics.

Preparing for Winter

The time to prepare for winter is in the summer when food is abundant. Right now while your annual giving is still predictable and stable, you must begin cultivating asset-based gifts and planned gifts.

“Go to the ant, you sluggard; consider its ways and be wise! It has no commander, no overseer or ruler, yet it stores its provisions in summer and gathers its food at harvest.” – Proverbs 6:6–8 NIV

Of course, the winter I’m talking about is the impending funding gap the vast majority of nonprofits will experience as they struggle to transition from a Baby Boomer donor base to Millennial support.

But like the ant, you can prepare right now for the inevitable change in seasons.

Thriving in the Midst of Change

To ramp up your asset-based giving and estate giving strategies, you’ll need to make sure you have the necessary conditions in place. To meet outside conditions in your donor base, you must change internally first. You will need…

1. A vision big enough for transformative gifts.

Asset-based gifts and legacy gifts are typically high-value gifts. As a rule, the size of your vision determines the size of the gifts you can bring in. So, does your vision go beyond the walls of your organization in a way that inspires transformational giving?

2. A foundation of trust between your organization and your current donors.

Trust builds long-term advocates and increased commitment. It requires frequent, clear, and authentic communication as well as consistent, organizational stewardship of donor funds. Do you have enough trust built with your donors to warrant transformational giving?

3. A story-based approach to fundraising.

Stories connect donors to causes. Stories inspire sacrificial generosity. Stories bypass the rational, cynical part of the human brain and go right to the heart. Are you using stories consistently in your fundraising to illustrate the impact donors can make by giving a transformational gift?

4. A commitment to long-term, holistic donor care.

Donors are the heroes of the story, and successful, well-funded organizations spend the time and money necessary to make sure they are fulfilling their donors’ dreams of change in the world. Is donor care merely a task you have to check off or is it the core of what you do as an organization?

5. A comprehensive plan for impact.

When we talk about asset-based and legacy gifts, we’re talking about sizable amounts of money. Donors who’ve carefully built their financial portfolios to achieve their wealth will demand that you have a clear plan of how you will use their money to create the highest amount of impact. Do you have a clear and well thought out plan for impact?

6. A generous, authentic organizational culture.

Donors respond to authenticity, so if you’re not walking how you’re talking, chances are you’ll miss out on a lot of asset-based giving opportunities. Besides being generous, you must have a plan to communicate your stories of generosity to your donors so that they see it. Is your organization known for its generosity?

7. An effective, proven strategy for cultivating and soliciting asset-based gifts.

Too many nonprofit leaders give up on cultivating asset-based and legacy gifts because of the complexity and challenges involved in approaching potential donors. But there is a simple, proven strategy that my colleagues have used over and over again to raise transformational gifts. Do you have a strategy that is working for you?

The greatest transfer of wealth in history is happening right now. The largest living generation has now changed. The shift has already begun and will continue to shape the future of nonprofits, ministries, and churches.

Asset-based giving and estate giving are key strategies to prepare your organization to thrive while others struggle.

Need help crafting your asset-based giving strategy? Need experienced donor consultants to help your donors navigate their estate planning and asset-based giving options?

Let’s talk! The call is free, and there’s no obligation.