Shifting Money,
Changing Donors
As the donor base gets younger, arts institutes must shift their focus
The US population is changing. People age 25-64 are the fastest growing group.
Arts organizations rely on funding from people here:
But very soon will be relying on funding from here:
According to the Federal Reserve's Survey of Consumer Finances,
wealth in America is shifting, with more millionaires in their 50s than in their 60s.
Source: Katherine Boyle, "Cultivating the Next Generation of Arts Donors," the Washington Post.
We must connect with a new generation of donors by meeting them where they are.
How do they participate?
A 2017 study by arts consulting firm La Placa Cohen asked: "If you could design your ideal cultural activity, what characteristics would be most important? "
While older generations prefer events to be Lively or Calm,
younger generations prefer events that are Social and Interactive.
Where do they go?
The same study asked arts participants about the arts activities they take part in annually.
Among other differences, you are more likely to encounter younger arts participants at a music festival, design museum, or art gallery than their older counterparts.
How do they give?
The LaPlaca Cohen study asked arts participants about their donation habits.
Results revealed that older generations are more like to donate to religious causes.
And children, health, and education are top concerns for younger generations.
They are also more likely to donate to human rights related causes.
Although older generations are currently the top contributors to the arts, donations from younger generations are on the rise.
A 2018 report from Blackbaud Institute found that average annual giving from Millennials and Gen X is up 14% and 23%, respectively.
Source: institute.blackbaud.com
Make strides toward connecting with these donors of the future. Connect where they care.
To start:
Host events that are Social and Interactive.
Consider partnering with organizations or artists to launch initiatives that focus on Children, Health, Education, and other areas that are of interest to younger donors.
Consider partnering with institutes that are popular with younger generations for arts activities.
Don't wait.
Cultivate the next generation of donors now to help secure your arts organization in the future.
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