Despite the ups-and-downs of my experiences in the nonprofit sector over the course of thirty years, I remain optimistic about the future. A few years ago, I wrote a blog post on LinkedIn about the Millennial generation. There, I reference an article by Jean Case, in Forbes (June 18, 2014), “The Business of Doing Good: How Millennials Are Changing the Corporate Sector.”
“Many in this generation are known for being well-educated, entrepreneurial, tech savvy and idealistic. They take risks, are bold and want to change the world. Unlike past generations, they want to make their passions, inspirations and desire to do good part of their identity—and part of their work. The lines between personal passions and professional engagements are already rapidly disappearing. As a result, this commitment to doing good in the workplace is quickly becoming the new norm that will define the generation.”
My experience is that Millennial and younger generations following on their heels are committed to a fixing the problems of society and to creating a better world at all levels. They are unafraid of tackling difficult challenges with creativity and conviction. And, they are already dominating the workforce. Their impact will continue to be far-reaching for decades to come. Hardly any American corporation today can afford to ignore them.
As I note in, “Nonprofits and Boomers: Are We Missing the Boat,” nonprofit organizations must also be mindful that Boomer and older generations are key for successful fundraising, for their knowledge and their valuable life experiences. Boomers are a generous generation and highly supportive of nonprofit endeavors, yet they are often seen as being stodgy and old fashioned.
Marketing professionals continue to focus on the young and the aesthetics of youth. And while many older adults do strive to be “younger” in some ways, as time moves forward and the aging population explodes worldwide, we are seeing a growing pride in being “older” and in the aesthetic preferences of older adults.
A few months ago, I approached a large national foundation that also has a substantial number of donor advised funds. I wanted to submit a proposal to fund an outstanding nonprofit project. But the nonprofit’s annual operational budget – being “under $1,000,000” – meant the foundation declined support based solely on that criteria. They would not take even a cursory glance at what the nonprofit is accomplishing, at how well it operates and how worthy it could be as a partner. On a personal note, what that foundation’s professional advisors also missed is that some of the Board members and donors of that nonprofit were capable of establishing donor advised funds. They would have been thrilled to receive even a modest grant and might have themselves become donor advised fund clients. But the “under $1,000,000” rule supplanted all other considerations. But why is operating budget size so important?
Since returning to Austin in 2013 and helping nonprofit “startups” bolster their infrastructure and credibility in order to secure more substantial donations, I have noticed some of them are reluctant to support younger nonprofits because they are, “too small.” Potential donors cite the nonprofits have not been in existence long enough (i.e., five years or more). Some decline because these smaller and younger initiatives have not had formal audits, which are an expensive undertaking for most small nonprofit organizations (and there are reputable alternatives). I visited with one foundation a few years ago that required every nonprofit applicant to have four consecutive years of professional audits. That is way over the top. I advised focusing instead on gold-level or higher GuideStar profiles, and GreatNonprofits reviews by those actually involved with and volunteering for the nonprofits applying.
The fact is, many of these startups and young nonprofits are lean staff- and budget-wise, and they operate highly efficiently. They accomplish amazing things with relatively little and the staff are deeply loyal to their missions. In my opinion, there seems to be a disconnect between the donor and professional advisor sectors, and the vast majority of nonprofit organizations, which are in fact smaller in size.
From the GuideStar Blog comes, “What Does the Nonprofit Sector Really Look Like?” (January 6, 2017):
“The majority of nonprofits (66.3%) have annual budgets of less than $1 million. From there, as organization size increases, the number of nonprofits decreases. For every 1 powerhouse (annual expenses more than $5 billion) nonprofit, there are thousands of grassroots organizations.”
My hope is for deeper, long-term partnerships between younger and older generations, the latter holding significant disposable income to make charitable donations. Boomers and older adults (and their professional advisors), often focus their charitable giving on tried-and-true nonprofits that have been in existence for many years. That is certainly their choice to make, but having seen nonprofits large and small in some detail as a professional fundraiser, I can say without hesitation many of younger and smaller nonprofits, startups and social good enterprises are more efficient and more likely to create positive change in society than the older, top-heavy ones. But these younger initiatives are often seen as being, “riskier.”
Lose your fear and support startups and smaller nonprofit organizations. Younger generations are – and will be – driving much of the social change ahead. We need to trust and encourage them. But also, younger generations need to engage older citizens and tap their knowledge and enthusiasm for social good, as well as their charitable donations. Together we can change the world for the better.
You might also enjoy reading these articles from Carolyn’s Nonprofit Blog.
Thanks to the Adobe Creative Cloud free image library for the photographs used to illustrate this blog post.