Philanthropy has long been a cornerstone of American society, but the motivations behind charitable giving are not static, they evolve with each generation. Today, nonprofits and higher education institutions face the challenge of understanding what drives donor behavior among two powerful cohorts: Millennials and Baby Boomers. According to Giving USA (2023), Americans donated over $499 billion to charitable causes in 2022, with individual donors accounting for 64% of all giving. Within this massive philanthropic landscape, understanding why people give and how they prefer to engage can make the difference between a successful campaign and a missed opportunity.
This blog explores how life stage, cultural values, and historical context shape philanthropic behavior in Millennials and Baby Boomers, offering practical strategies for organizations to engage both groups effectively.
Why Their Giving Styles Differ
Generational identity shapes values and behaviors through shared experiences, and philanthropy is no exception. Baby Boomers, born between 1946 and 1964, grew up during post-World War II economic prosperity. They experienced stable employment opportunities and benefited from institutional trust, which translates into confidence in traditional organizations like churches, alma maters, and hospitals (Tempel et al., 2022). Many Boomers view charitable giving as an expression of loyalty, gratitude, or civic duty. This is why unrestricted gifts and capital campaigns appeal to this group.
Millennials, born between 1981 and 1996, have taken a different path. They came of age during the digital revolution, the Great Recession, and mounting student debt. These factors contribute to their lower disposable income compared to Boomers, yet Millennials show high participation rates in giving (National Philanthropic Trust, 2023). Their motivations emphasize purpose, impact, and transparency. Unlike Boomers, who often assume institutions will steward donations appropriately, Millennials want proof—data, stories, and visible results. They also value community-based giving and see philanthropy as a personal extension of identity, not just a financial transaction (Forbes, 2018).
Technology plays a critical role in this generational divide. Millennials live in a world of “Googlization” (Tempel et al., 2022), where information is immediate, and engagement happens online. This translates into preferences for digital campaigns, crowdfunding, and peer-to-peer fundraising. Baby Boomers, by contrast, are less reliant on social media and more responsive to traditional outreach methods like direct mail, phone calls, and in-person events (Blackbaud, 2016).
Real-Life Giving Examples
Millennial Giving: From Viral Campaigns to Digital Communities
One of the most striking examples of Millennial-driven philanthropy is the ALS Ice Bucket Challenge of 2014, which raised over $115 million for the ALS Association. The campaign thrived on social media, peer influence, and gamification, core elements that resonate with Millennials’ desire for collaborative impact (ALS Association, 2020). Similarly, Giving Tuesday has become a global movement powered by younger donors. In 2023, Giving Tuesday raised $3.1 billion in the United States alone, much of it through online channels and social media advocacy (GivingTuesday, 2023).
Another example is crowdfunding for personal and social causes. GoFundMe has collected over $30 billion since its inception, fueled by a generation that values transparency and wants to see their contributions make a tangible difference (Time, 2017). For Millennials, philanthropy is not just about money; it’s about storytelling, community, and shared values.
Boomer Giving: Legacy and Large-Scale Impact
On the other end of the spectrum, Baby Boomers dominate major institutional gifts. In 2024, Dr. Ruth Gottesman, a former professor at Albert Einstein College of Medicine, donated $1 billion to make the school tuition-free for all students, a classic example of Boomers’ loyalty to trusted institutions and desire to leave a legacy (Barron’s, 2024). Many higher education naming opportunities, such as endowed chairs and buildings, are underwritten by Boomer donors who seek permanence and recognition.
Boomers’ giving is closely tied to traditional solicitation strategies. Capital campaigns, alumni reunions, and recognition events remain highly effective for this group, reinforcing their connection to institutions that shaped their personal and professional lives (Shaker & Borden, 2020).
Millennials vs. Baby Boomers: A Snapshot
| Aspect | Millennials | Baby Boomers |
|---|---|---|
| Participation Rate | ~84% giving annually (National Philanthropic Trust, 2023) | ~72% giving annually (National Philanthropic Trust, 2023) |
| Average Gift | ~$481 annually (National Philanthropic Trust, 2023) | ~$1,212 annually (National Philanthropic Trust, 2023) |
| Preferred Channels | Online, social media, crowdfunding (AFP Global, 2022) | Direct mail, phone calls, events (Blackbaud, 2016) |
| Motivating Factors | Social impact, transparency, identity alignment (Forbes, 2018) | Tradition, loyalty, legacy (Tempel et al., 2022) |
| Technology Use | High—peer-to-peer platforms, mobile apps | Moderate—email and web giving, less social media |
| Recognition | Impact reports, digital storytelling | Naming opportunities, plaques, legacy programs |
Why It Matters to Fundraisers
These differences have practical implications for nonprofits and higher education institutions. Engaging Millennials requires authenticity and interactivity. They expect two-way communication and want to see measurable outcomes. Organizations that embrace digital platforms, share real-time impact updates, and provide opportunities for involvement beyond donations—such as advocacy or volunteer roles—are more likely to retain Millennial donors (AFP Global, 2022).
Boomers, in contrast, appreciate formality and recognition. Personalized stewardship, invitations to exclusive events, and legacy planning opportunities resonate with this generation. Ignoring these preferences risks alienating donors who control the majority of charitable dollars today—Boomers account for 43% of all giving (Blackbaud, 2016).
Practical Tips for Organizations
To Engage Millennials:
-
Offer mobile-friendly donation options and recurring gift programs.
-
Use social media to share authentic stories and impact metrics.
-
Provide opportunities for co-creation, such as crowdfunding campaigns where donors can champion a cause.
-
Emphasize transparency with dashboards, reports, and testimonials.
To Engage Baby Boomers:
-
Continue traditional methods like direct mail and phone campaigns, supplemented with email newsletters.
-
Highlight institutional stability and legacy opportunities such as endowments or scholarships.
-
Offer formal recognition through naming opportunities and exclusive donor events.
-
Use trust-based messaging rather than transactional appeals.
The Future of Philanthropy
As Millennials progress in their careers and increase their earning potential, their influence on philanthropy will grow. Already, they are reshaping the sector by demanding accountability, equity, and inclusivity from the organizations they support. At the same time, Baby Boomers remain critical players, sustaining capital campaigns and major gift initiatives.
The real question is: Will Millennials adopt some of the traditions that define Boomer philanthropy, or will their values permanently transform the landscape? Looking ahead, one certainty emerges: successful organizations will not choose between generations—they will craft strategies that honor legacy while embracing innovation. Those that adapt will thrive; those that do not risk being left behind.
References
AFP Global. (2022). How different generations give: Four things you need to know. Association of Fundraising Professionals. https://afpglobal.org/how-different-generations-give-four-things-you-need-know
ALS Association. (2020). ALS Ice Bucket Challenge impact report. https://www.als.org/icebucketchallenge
Barron’s. (2024, February 26). $1 billion medical school donation could reshape philanthropy. https://www.barrons.com/articles/1-billion-medical-school-donation-could-reshape-the-scope-of-academic-philanthropy-591b7519
Blackbaud. (2016). The next generation of American giving. https://institute.blackbaud.com/asset/the-next-generation-of-american-giving-2018/
Forbes. (2018, August 15). How Millennials are changing philanthropy. https://www.forbes.com/sites/theyec/2018/08/15/how-millennials-are-changing-philanthropy
GivingTuesday. (2023). Giving Tuesday 2023 impact report. https://www.givingtuesday.org
National Philanthropic Trust. (2023). Charitable giving statistics. https://www.nptrust.org/philanthropic-resources/charitable-giving-statistics
Shaker, G. G., & Borden, V. M. H. (2020). Trends and issues in higher education fundraising. Indiana University Lilly Family School of Philanthropy.
Tempel, E. R., Seiler, T. L., & Burlingame, D. F. (Eds.). (2022). Achieving excellence in fundraising (5th ed.). Wiley.
Time. (2017, August 29). The real reasons people use GoFundMe to cover health care costs. https://time.com/4912910/crowdfunding-gofundme-youcaring