A recent report shows that even though many millennials are battling some serious debt, they're more likely than other generations to lend a charitable hand.
Millennials' patterns and types of giving also reveal some other interesting contrasts with previous generations. Let's take a closer look.
What millennials owe
According to the Federal Reserve, the average person in their 20s in the U.S. owes about $22,135 in student loan debt. The average student loan payment is $351 per month.
And for most millennials, that payment is hardly a comfortable one. Approximately 51% report being underemployed—a 10% leap in the past three years—and millennial unemployment rates are about three times higher than the national average.
What millennials give
According to a recent Blackbaud report, millennials give an average of $481 per year—which is less than Baby Boomers ($1,212) and members of Generation X ($732) if you're strictly looking at dollars.
However, 84% of millennials give to charity—which is more than Baby Boomers and Generation X. So while millennials may have less to give, more of them do it anyway.
They’re also changing how charitable donations are made. In 2016, overall charitable giving increased only 1%, but online giving went up 7.9%—and much of that is driven by millennials.
Millennials are also more careful with the dollars they donate. According to Give.org, approximately 60% of relief dollars earned after hurricanes Harvey, Maria, and Irma came from millennials. And millennials were also more likely than any other generation to research hurricane charities before giving.
More informed donations
Millennials also more likely than any other generation to demand transparency. Approximately 57% reported wanting to know the impact of their individual donation, and about 28% follow their beneficiaries on social media. They're also more likely than other generations to expect regular updates from charities on how their dollars are spent and who they helped.
Millennials want to know how their donation made a difference—on a personal level. They’re much more likely to be moved by individual appeals than by a large, well-known charitable organization.
This way of giving fits perfectly with the new crowdfunding trend—which is now a multi-billion dollar industry. Through platforms like Indiegogo and GoFundMe, donors can hear individual stories, get frequent updates, and see how their donation helped a specific person or cause.
Crowdfunding has been a huge disruptor of charitable giving in recent years, and Millennials have been driving that trend. They make up approximately 33% of donations to crowdfunding platforms, according to a recent study by Massolution.
Millennials also put pressure on corporate America. A recent Nielsen report states that 73% of Millennials worldwide will pay more for sustainable products—compared with 66% of global consumers overall.
The takeaway? Millennials may have fewer dollars to give—but they’re having a huge impact on charity as a whole by turning to crowdsourcing, demanding more accountability and transparency, and expecting more from companies.
That’s something this generation can be proud of.
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