Searching for Gen X and Y

Have you been trying to figure out how to get those elusive young people in their 20's and 30's (Gen X and Y) involved in your organization? Join the crowd. Most nonprofits are dominated by folks age 50 and up - as staff, volunteers, board members, and donors.

• Gen X and Y have been born into a very different world - dominated by the fear of environmental collapse and terrorism, an exploding world of new media, and decreasing faith in institutions. But they also have a strong desire to help others and to raise money for their favorite causes.

• Members of Gen and Y now constitute more than half of the pool of potential donors - yet they contribute less money, support fewer charities, and are challenging to hold onto. According to a recent study by Edge Research, Gen Y donors averaged gifts of $341 to 3.6 group; members of Gen X gave $796 to 4.2 organizations. By contract, Baby Boomers contributed $901 to 5.2 groups and those born before 1946 gave $1,066 to 6.3 charities.

• For Gen X and Y, no one manner of giving dominates - 43% used direct mail, 35% a nonprofit website, 13% cellphone donations. In fact, 77% of those surveyed said they learned about helping quake victims in Haiti via their cellphones, and the majority found information on nonprofits primarily through internet sources. Older folks respond primarily to direct mail and print materials - 77% said they gave through the mail in the past two years.

• Younger donors enjoy giving as part of social events and through volunteering - personal contact with an organization , especially when it involves fun and friends, is still important to them.

• Gen X and Y give just because they are asked by friends - and this is increasingly happening through social media networks. 36% of those under 30 had forwarded a message from a charity to a friend in the past month, 37% would join an organization's Facebook group, and 29% had posted information about a favorite charity on their person Facebook page.

• Younger donors are likely to say they will be increasing charitable donations this year - and much less likely to feel that the global recession has affected their giving.

So: in order to retain current donors and reach out to Gen X and Y, your nonprofit is going to have to do it all: Facebook, text messages, enewsletters, volunteer work parties, youth-oriented events and parties, brochures, phone calls. Your challenge is to engage the genuine desire of young people to make a difference in this world, using every new strategy at your fingertips.

The State of the Arts

These are challenging times for nonprofit arts organizations - and not just because of the economy:

• Since 1998, the number of nonprofit arts groups - all competing for audience and participants and grant funding - has increased by 42%. At the same time, attendance and ticket sales at most mainstream arts organizations have been in a steady decline.

• People are increasingly staying at home, choosing to participate in the arts through television or the internet - where you can find almost anything you want to see, for free - or through do-it-yourself arts projects.

• For-profit businesses - bookstores, cafes, restaurants, retail stores - have become very proactive in promoting and presenting lectures, concerts, and events. For the most part, there is no admission charged because the payoff is increased business, foot traffic, and name recognition. Often these events are benefits for local nonprofits, increasing goodwill for the business while blurring the lines between the for-profit and nonprofit worlds.

• The cell phone culture, in which anyone can be reached and plans made at any moment, has resulted in a casual and last-minute approach to life. This has lead to reduced advance ticket sales and subscription series sales.

• As America's population grows in diversity, people are seeking out arts experiences through ethnically and/or culturally specific organizations rather than standard arts venues.

• At museums, concerts, and theater performances, the majority of folks attending are gray-haired and Caucasian. Nonprofits are struggling to find ways to engage new and ethnically diverse audiences, especially those who are under 40.

• In the competition for government and foundation dollars, arts agencies rarely win when pitted against agencies that feed the poor and house the homeless. For the past decade, arts and cultural groups have been steadily losing their share of philanthropic dollars to international, environmental, disaster relief, and social services agencies.

What does this mean for the future? There are some innovative success stories to consider: the Metropolitan Opera's simulcasts in movie theaters, ArtsMemphis' Iphone app that allows people to directly access their calendar, the new wave of (not quiet anymore) libraries with cafe-like atmospheres and lots of computer access, lively singles' nights at theaters and classical music venues. Arts organizations are going to have to work harder, be more creative and business-savvy, stay up on current trends in social media, experiment with programs designed to reach people of all ages and cultures, and actively seek out collaborative efforts with both for-profit and nonprofit partners that draw new participants.

The Lifecycle of Nonprofit Organizations

Is your organization just starting up, and full of excitement about its mission? Or does your agency have a long track record, assets to manage, and a big staff? Nonprofits - like people - travel through different stages of development over time, and each of these stages poses specific challenges. Identifying your organizational stage will aid in your ability to effectively analyze agency issues as well as plan for the future.

• Stage One: Your agency is just starting up. There is tremendous passion about your mission and what you want to accomplish. What you don't know about nonprofit management is more than compensated for by your boundless enthusiasm and willingness to work. Your focus is on services; policy-making and fundraising happen on an as-needed basis. Your strengths: excitement, commitment to mission, lots of volunteers. Your challenges: lack of expertise, funding, and a track record.

• Stage Two: The work you want to do to serve your mission begins to crystallize. Your organization hires paid staff to do the nitty gritty work, but board members run ongoing operations. Board and/or staff are beginning to see a need to formalize systems for management and oversight, but there is a deep reluctance to giving up the fun and informality of the early years. Your strengths: ability to provide services on a shoestring budget, creativity, friendly and casual atmosphere, a highly committed board and staff. Your challenges: lack of consistent funding, long-range planning.

• Stage Three: Staff begins to oversee programs and services, while the board tries to figure out its changing role. Much of the board's time focuses on governance and financial management. Fundraising becomes absolutely central to the board's role, often in face of great resistance. Your strengths: growing relationships with donors who believe in your cause, the development of systems to sustain your organization over time. Your challenges: board/staff struggles over who is in charge, increased expenses, the board's reluctance to fundraise.

• Stage Four: Your annual budget is significant in size, as is your staff; you have assets to manage. Staff and board must formally establish their distinct responsibilities. These roles will be different than before, requiring everyone to be thoughtful, communicative, and open to change. This can be a challenging and contentious process, but if handled properly will strengthen the organization. Your strengths: established relationships with donors, successful programs. Your challenges: more board/staff struggles, resistance to change, keeping your commitment to your mission vital.

• Stage Five: Your agency is big, well-known, and well-funded. Your strengths: name recognition, established procedures, consistent resources. Your challenges: avoiding complacency, maintaining oversight of complex operations.
  

Numerous books and websites about nonprofits will outline all the procedures you should be following and all the policies that need to be in place. These are important to know, but be sure to exercise judgment about appropriate structures and solutions based on your developmental stage. Understanding the challenges of each stage is key to defining board/staff roles and responsibilities that match the organization's needs and further its mission.