New Year, New Philanthropists
For the last forty years, charities have focused their high-end fundraising on unrestricted gifts from the Traditionalist generations (born Pre-1946). But in the New Year, Brian Sagrestano, JD, CFRE says it’s time to recognize that there’s a new donor in town, the “New Philanthropists” (born 1946-present).
As co-author of The Philanthropic Planning Companion: The Fundraisers’ and Professional Advisors’ Guide to Charitable Gift Planning, Sagrestano has done copious research to explore why charities and professional advisors must use a collaborative, philanthropic planning approach when working with these rising New Philanthropists. During Sagrestano’s AFP webinar, Transformational Gifts: Using Philanthropic Planning to Partner with Prospects and Advisors, on Thursday, Jan. 24, 2013, from 1:00 – 2:30 p.m. Eastern, he will outline the key elements that are instrumental in appealing to the New Philanthropist.
What kind of approaches will Sagrestano be discussing in his webinar on Jan 24? “I’ll be highlighting how to build a philanthropic planning program for New Philanthropists by outlining the formula, which is made up of 10 elements.” Special attention will be given to the common elements that are derived from philanthropic planning efforts that have been conducted by Princeton, Harvard, the Heritage Institute and others. Among these elements are family, family values and an understanding of family wealth. Tune-in to the webinar for all 10 elements!
Understanding the New Philanthropists, consisting of Baby Boomers, Generation X, and Millennials, will strengthen your outreach to these high net worth donors. Other than the obvious factor—age—Sagrestano says there are three other major differences between a Traditionalist and New Philanthropist. “Traditionalists are willing to make unrestricted gifts, whereas New Philanthropists want to make restricted gifts,” he says. Another major difference is that Traditionalists have more trust in charities while Philanthropists don’t have the same level of inherent trust built up for nonprofits. Finally, tying in the trust issue is a stronger sense of obligation that comes from the Traditionalists, as opposed to how a New Philanthropist feels.
The biggest challenge in appealing to the New Philanthropists is finding a common ground between them and charities, and helping charities understand what the New Philanthropists want out of their gifts. “Charities prefer unrestricted money with no accountability, whereas New Philanthropists want to give restricted gifts with maximum accountability”, says Sagrestano. The New Philanthropists want to know exactly where there gift is going, and the charity needs the resources to be able to adapt to this growing demand and be able to provide the pertinent information about the gift.
Though New Philanthropists are now in their peak earning, giving, and planning years, Traditionalists are still making an impact. Although they are a shrinking minority, Traditionalists still make-up 18 percent of the giving population and continue to give significant amounts. Sagrestano’s key point: there are two vastly different approaches needed when appealing to the two different generations—one size does NOT fit all.
To learn how your charity and organization can hone their approach towards the New Philanthropists, while maintaining appropriate tactics to reach the Traditionalists, tune-in to Sagrestano’s webinar, geared towards the advanced practitioner, on Thursday, Jan. 24, from 1:00 – 2:30 p.m. Eastern.
If, after attending Sagrestano’s Webinar you’re itching to dive deeper and further pick the co-author’s brain, you can catch him at AFP’S 2013 International Conference on Fundraising in San Diego, on Tuesday, April 9, from 8:00 – 9:15 a.m. Pacific. Sagrestano will be joined by his co-author, Robert E. Wahlers, CFRE, and they will open up the discussion to YOU and help you tailor their formula for your specific cause, charity, and donor base.
With New Philanthropists come new approaches, and it’s time to get on board!
Related AFP ResourcesGiving USA: 2015 America’s Most Generous Year Ever
AFP/Globe and Mail: Incentives for Taking Canadian Giving to the Next Level
How Nonprofits can Steward More Donors with Stories
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RESEARCH: As a Canadian Donor, What Do You Want?