Insights

How to Attract and Engage Gen Z & Millennial Donors in 2025

Written by Baldwin CPAs | 7/14/25 7:26 PM

Why This Moment Matters

Gen Z and Millennials are stepping into an unprecedented inheritance cycle that will shift roughly $84 trillion over the next two decades. Their generosity is already visible, yet it looks nothing like the check-writing habits of previous generations. They give on phones, they rally around causes in real time, and they demand proof that every dollar counts. If nonprofits adapt to this mindset, they can unlock long-term support and fresh energy. Ignore it, and they risk watching donation streams dry up.

 

Understanding the Next Generation of Donors

Who Are Gen Z and Millennials?

Millennials were born between 1981 and 1996, while Gen Z spans 1997 to 2012. Combined, they now make up more than half of the U.S. workforce, and their purchasing power tops $3 trillion annually. More important for philanthropy, they are digital natives: nine of ten own a smartphone, and nearly all manage money through mobile apps.

Values That Shape Their Giving

A 2025 national study by the Indiana University Lilly Family School of Philanthropy found that 64 percent of next-gen donors “support causes, not institutions,” preferring campaigns they can see and share immediately. Their gifts flow to social justice, climate action, racial equity, and mental-health initiatives far more than to traditional umbrella charities.

 

The 2025 Giving Landscape

Key Findings From Recent Studies

  • Giving USA 2025 reports that overall U.S. charitable contributions hit $592.5 billion in 2024, a record year.
  • Millennial household giving grew 40 percent between 2016 and 2022, outpacing any other cohort.
  • Deloitte’s 2025 Global Gen Z and Millennial Survey notes that purpose, meaning, and personal well-being rank alongside salary when these generations decide where to work and where to give.

The Great Wealth Transfer and Its Impact

Boomer parents are already funneling assets to adult children. This transfer will accelerate through 2035, positioning younger families to become primary philanthropic decision-makers. Nonprofits that cultivate relationships now will be first in line when significant funds are ready for distribution.

 

Digital-First Giving Habits

Mobile and Friction-Free Payments

Pushpay’s 2025 State of Church Tech survey shows 70 percent of church leaders believe technology has increased generosity, and nine of ten now livestream services. Even faith communities—traditionally slower adopters—are embedding QR codes and digital wallets, proving that mobile giving is mainstream.

Cryptocurrency and Other Non-Cash Assets

Fidelity Charitable’s 2025 Giving Report reveals $786 million in crypto gifts during 2024, a fourteen-fold jump from 2023. Nearly 67 percent of all contributions to its donor-advised funds were non-cash assets. Meanwhile, over 70 percent of America’s top 100 charities now accept cryptocurrency.

 

Motivations and Mindsets

Issue-Driven and Impact-Focused

Next-gen donors rally around campaigns that feel urgent and solvable. They hop onto crowdfunding sites after disasters and expect real-time updates. If outcomes lag or stories feel inauthentic, they shift attention instantly.

Trust and Transparency Expectations

Recent polling shows confidence in major institutions hovers in the single digits for adults under 30. Philanthropic groups are responding by embedding youth advisors and co-designing programs to rebuild credibility.

 

Four Pillars to Engage Next-Gen Donors

Radical Transparency

Post your Form 990, audit summaries, and live impact dashboards on your site. When donors see precisely where money travels, repeat gifts climb. Blockchain receipts or third-party ratings offer extra reassurance for tech-savvy supporters.

Seamless Digital Giving

Eliminate every extra click. Enable Apple Pay, Google Pay, Venmo, and recurring “subscription” gifts. Monthly giving now accounts for 31 percent of online revenue, according to the 2025 M+R Benchmarks Study.

Immersive Storytelling and Hybrid Events

The 2025 OneCause Fundraising Outlook shows 76 percent of nonprofits that used hybrid events met or exceeded their goals, proving that a blended in-person and virtual format widens reach without sacrificing intimacy.

VR, AR, and Live Streams

Short TikTok-length clips, 360-degree tours, or an AR filter that places your donor inside a mangrove restoration site generate emotion and share-worthy moments.

Meaningful Involvement Beyond Money

Give supporters real authority: invite them to serve on grant panels, run peer-to-peer challenges, or lend professional skills in micro-volunteer sprints. Such co-creation taps their desire for agency and keeps them engaged between giving cycles.

Youth Councils and Skill-Based Volunteering

Structure a young-professional board with voting rights on micro-grants under $5,000. Provide two-hour remote projects—like editing a video or auditing SEO—that fit into busy schedules and let volunteers see instant results.

 

Leveraging Technology and AI

Personalization and Retention

A June 2025 multi-organization test of AI-powered donor analytics increased net donations and fundraising efficiency by identifying lapsed but recoverable donors. AI tools can score prospects, trigger personalized thank-you videos, and predict when a supporter is ready to upgrade to monthly giving.

Building Community and Social Proof

Gen Z and Millennials trust peers more than institutions. Encourage user-generated content, offer social-media toolkits, and publicly celebrate ambassadors. A single Instagram reel of a volunteer’s impact story can outperform a polished corporate video in reach and authenticity.

Implementation Roadmap

  • First 30 Days: Add Apple Pay, publish an impact counter, and segment email lists by age and preferred cause.
  • Next 90 Days: Pilot a hybrid event with live chat, recruit eight Gen Z advisors, and launch a recurring gift option pre-selected on donation forms.
  • Next 180 Days: Roll out an AI recommendation engine, integrate crypto rails, and launch a VR mission tour.

Measuring Success

Track retention, upgrade rates, cost to acquire, lifetime value, and channel mix. Compare metrics quarterly so you can iterate fast rather than wait for an annual review.

 

Common Pitfalls to Avoid

  • Treating digital as a bolt-on instead of a core strategy
  • Over-segmenting until messages feel robotic
  • Ignoring data privacy or failing to give opt-out choices
  • Launching tech without staff training or support

The Future of Philanthropy: 2025 – 2030

Expect AI to automate back-office tasks, freeing staff to focus on relationship building. Non-cash assets—crypto, stock, even carbon credits—will represent a growing slice of donations. Donor journeys will feel more like personalized playlists than mass email blasts. Organizations that remain transparent, responsive, and eager to share power will lead the sector.

Conclusion

Next-gen donors are generous, but selective. Show clear impact, remove friction, invite them behind the curtain, and leverage technology to personalize every touch. The payoff is more than money—it is a vibrant community of advocates who will stand with you for decades.

Ready to Future-Proof Your Nonprofit’s Donor Strategy?

The next generation of donors is already giving — but they expect more than a donation receipt. They want transparency, tech-enabled giving, and authentic involvement. At Baldwin CPAs, we help nonprofits like yours adapt and thrive with data-driven strategies tailored for today’s donors.

Discover how we can support your mission.
Visit baldwincpas.com/non-profit to learn more.

 

 

Frequently Asked Questions

Do Gen Z donors really give less money?

They often give smaller one-time gifts, but they volunteer more hours and are quick to set up recurring gifts when impact is proven.

Is cryptocurrency safe for small nonprofits to accept?

Yes, if you partner with a reputable platform that converts instantly to cash, reducing volatility risk.

How can we start with AI if we have a tiny budget?

Free or low-cost tools can score donor engagement and personalize emails. Begin with one pilot segment before scaling.

What is the easiest transparency win?

Post a simple “Where Your Money Goes” graphic on your homepage and update it monthly.

Should we abandon direct mail?

No. Use it strategically to complement digital channels, especially for older donors and for storytelling pieces that stand out in a crowded inbox.