Italy's youth and car owners significantly contribute to charitable donations
In the world of philanthropy, a significant shift is underway, as Generation Z and millennials are transforming the landscape with their digital-first, impact-focused, and socially conscious giving habits.
A recent research study, Donare 3.0, conducted by Bva Doxa for PayPal and Rete del Dono, has revealed some fascinating insights into the giving attitudes of these generations. Valeria Vitali, the founder of Rete del Dono, stated that young people and women are the driving force for change in donations.
Values and motivations play a crucial role in the giving decisions of Generation Z and millennials. They prioritise impact, advocacy, and transparency, seeking to support causes that align with their social values and expecting clear reporting on outcomes. Millennials, on the other hand, emphasise trust, transparency, and impact, often valuing purpose-driven contributions connected to social justice and community-based efforts.
When it comes to preferred causes, there is some overlap, but differences exist as well. For Gen Z and millennials, top causes include places of worship, healthcare, and faith-based organizations. Baby Boomers also donate heavily to education and veterans' causes.
In terms of donation methods and engagement channels, Gen Z and millennials predominantly use digital giving platforms, such as online giving via smartphones, crowdfunding, peer-to-peer fundraising, donation at checkout options, social media campaigns, and communication through texts, social media, and email.
Millennials and Gen Z respond well to gamification, subscription-based giving, and interactive cause-based experiences, making donating more engaging and tied to community participation. They also favour social media-driven fundraising challenges and expect nonprofits to harness technology and transparency.
The economic crisis and wars have had a significant impact on donations, but young people's donations remained relatively stable. In 2023, online user donations decreased by 4 points compared to the previous year, totaling 80%. Despite a general decrease, young people who say they are engaged in volunteering activities remained stable at 34%.
The more the digital dimension grows, the more the physical dimension of proximity is able to make a difference, creating a phygital factor. Physical initiatives are preferred as a contact strategy by online donors, with 47% choosing this option.
In light of these trends, Rete del Dono collected over 3.5 million donations on their platform in 2023. The fundraiser should take the physical dimension into account and integrate it with the digital.
Interestingly, baby boomers and Generation X saw a significant decrease in donations, with baby boomers going from 85% in 2022 to 76% in 2023, and Generation X from 83% to 78%.
Italia Non Profit has launched the first complete map of non-profit organizations in Italy that geolocates the entities, activities, and social causes present in the territories. Small associations scattered across the Italian territory could seize this new demand for donors who return to the territories, places, and can seize the small good causes scattered at the local level.
In summary, Generation Z and millennials are transforming philanthropy through their digital-first, impact-focused, and socially conscious giving, contrasting with older generations who may prioritize legacy and local community causes and use more traditional donation methods.
- In the realm of philanthropy, millennials prioritize transparency and impact, often valuing purpose-driven contributions connected to social justice and community-based efforts, utilizing digital platforms like online giving, crowdfunding, and social media campaigns.
- Values and motivations are crucial factors in the giving decisions of Generation Z and millennials, who seek to support causes that align with their social values and expect clear reporting on outcomes, favoring social media-driven fundraising challenges and interactive cause-based experiences.
- Despite the widespread use of digital platforms, the physical dimension remains important to online donors, with 47% preferring physical initiatives as a contact strategy, indicating a growing 'phygital' factor in philanthropy.
