What Makes Generation X Parents Tick?

Myra McGovern, Director of Public Information, NAIS – [email protected]

Amada Torres, Director of Academic Research, NAIS – [email protected]

Who are the members of Generation X?

What percentage of the population?

Gen Xers were 16% of the total population in 2009. By 2030, they are expected to be 13% of the population.

- America’s Gen X

Among independent school parents responding to a recent NAIS survey, Generation Xers made up 58% of all respondents.

-- Prospective Parents

Characteristics of Gen Xers



Latchkey kids

: Many Gen Xers were children of divorce or had two working parents. 

Value work/life balance

: First generation unwilling to become workaholics and sacrifice their family lives.



Resourceful and independent

: Comfortable with change. Less trusting of institutions. 

Technologically savvy

: First generation having the Internet entire adult life.



Diverse

: They are more ethnically diverse than previous generations.

What do they value?

What do they look for in schools?

What do Gen Xers value?



Work/ life balance

– want to spend more time with their children, not tied to their offices. 

Diversity

– they grew up in diverse communities, learning from the experiences of people unlike themselves. They expect the same for their children.

  

Opinions of peers

– skeptical of authority. Seek data and opinions of others to help make decisions.

Accountability –

Expect transparency and hard data to back up claims. No more “just trust us!”

Comfortable with change

– evaluate choices regularly and are willing to change if a better opportunity opens up.

What are all parents looking for in schools?

There are two principles that parents in our research indicate they most want to find in schools for their children: 

Educating the whole child:

nurturing critical thinking, intellectual and personal growth.

 Attending to the child’s own

particular needs

.

Source: Marketing Independent Schools to Generation X and Minority Parents, NAIS, 2006

Gen X parents with young children are most concerned about…



Development and opportunity

: Emphasis on finding a school that offers a variety of activities and classes. They want school to engage their children and expose them to many things. 

Safety concerns

: need to see that schools will keep their children safe from accidents, bullies, or other dangers.



Too much selectivity and standardized testing

: concerned that putting too much pressure on their children will teach them to dislike school.

Source: Marketing Independent Schools to Generation X and Minority Parents, NAIS, 2006

Gen X parents of older children are most concerned about…



Rigorous academics

: look for schools that provide the necessary skills to prepare their children for college and career.



Safety concerns

: concerned about safety, specifically social dangers such as drugs, bullying, and sex.

Source: Marketing Independent Schools to Generation X and Minority Parents, NAIS, 2005

What motivates Gen Xers to give?

Gen Xers Compared to Previous Generations of Donors

Estimated % of Donors

Gen Xers

58%

Boomers

67%

Matures

79% 52 Million 31Million Estimated # Donors 36 Million Average Contribution per Year Average Contribution to Top Charity $796 $272 Average # of Charities 4.2

Estimated Annual Contributions $29 Billion From “The Next Generation of American Giving” $901 $211 5.2

$47 Billion $1,066 $280 6.3

$33 Billion

How Gen X Donations Compared to the Parent Average Gift?

From “StatsOnline Core Samples-Development”

How Gen X Donations Compared to the Alumni Average Gift?

From “StatsOnline Core Samples-Development”

Gen Xers As Donors

 Charitable giving is often spontaneous and emotional  Peers have great influence  Giving must be easy  More likely to respond to an integrated, multi-channel approach  Less likely to write a check  More engaged with social media than older donors

They also want to volunteer and “spread the word”

Where do you think you can make the most difference with (top charity)?

From “The Generational Divide in American Giving”



They are more “entrepreneurial” and want to have an impact

Gen Xers view their philanthropic giving entrepreneurially.  “They also want to be more in control of their marketing and media experiences — when and how they give.”

(from Fundraising Success

magazine).

 “We don't call what we are doing philanthropy, we call it having an impact.” – Gen Xers think of the globe as their community. Many of the most compelling projects are international. – Gen X millionaires gave twice as much as their parents and grandparents.

– Giving is about improving effectiveness. (from “Next Gen Gives - But Don't Call them Philanthropists”)

Other factors impact giving too

Differences among generations are substantial, but don’t discount other factors that could explain motivations: • Lifecycle stage • Income level • Educational attainment • Ethnic background • Frequency of religious attendance From “Generational Differences in Charitable Giving and in Motivations for Giving”

Donors can be broken down into six behavioral segments Repayer

“I give to my alma mater” “I support organizations that have had an impact on me or a loved one”

Faith Based

“We give to our church” “We only give to organizations that fit with our religious beliefs”

Casual Giver

“I primarily give to well known organizations through a payroll deduction at work”

High Impact

“I give to the nonprofits that I feel are generating the greatest social good” “I donated $1,000 so I could host a table at the event”

See the Difference

“I think it’s important to support local charities” “I only give to small organizations where I feel I can make a difference” “I support causes that seem overlooked by others”

Personal Ties

“I only give when I am familiar with the people who run an organization” “A lot of my giving is in response to friends who ask me to support their causes” From “Money for Good: The US Market for Impact Investments and Charitable Gifts from Individual Donors and Investors.”

Motivations for Giving Among High Income Donors Repayer

Cause impacted me or a loved one (38%)

Casual Giver

Org is established and respected (27%) I will be recognized or appreciated (4%) Easy to give through work (3%) Good social events or gifts (3%)

High Impact

Focused on underserved social issue (18%) Org better at addressing social issues (12%)

Faith Based

Fit with religious beliefs (65%)

See The Difference

Org works in my local community (30%) Org is small gift makes a difference (16%)

Personal Ties

Familiar with org/leadership (26%) Friend/Family asked me (10%) In social or professional network (5%) Try to support friends' charities (3%) From “Money for Good: The US Market for Impact Investments and Charitable Gifts from Individual Donors and Investors.”

What are the best ways to reach Gen Xers?

Gen Xers’ Social Media and Mobile Habits Social Media Habits

(% doing regularly)

56% 30% 13% 11% 11% Mobile Habits 28%

Mobile ONLY phone

37%

Mobile is primary

27%

Facebook mobile app

40%

Texters From “The Generational Divide in American Giving.”

Mail Email/e-newsletter Website Subscribe issue updates FB other social media Text/SMS Twitter

Information Channels Used by Top Charity Gen Xers Boomers

38% 36% 34% 34% 28% 22% 14% 13% 16% 4% 5% 5% 1% 1% From “The Next Generation of American Giving”

Friend asks for money Mailed letter/msg Email Msg to fans on social network Phone call Text/SMS

Preferred Solicitation Channels Gen Xers Boomers

89% 79% 69% 60% 42% 25% 82% 74% 60% 38% 39% 16% From “The Next Generation of American Giving”

Preferred Giving Channels Gen Xers

57% 43% 35% 35% 28% 22% 27% 10% 17% 13% 6%

Boomers

52% 54% 32% 31% 28% 27% 17% 16% 14% 4% 4% From “The Next Generation of American Giving”

Ways Currently Involved with Top Charity Gen Xers Boomers Overall

Direct donation Donate goods Visit website Volunteer 28% 23% 13% Support friend walk/run/etc.

Promote charity online Fundraise Participate in walk/run/event Advocacy campaign 0% 12% 12% 8% 7% 6% 20% 40% 60% 68% 80% From “The Next Generation of American Giving” 66% 30% 23% 17% 13% 14% 8% 9% 9% 76% 30% 20% 11% 11% 9% 7% 5% 5%

What Does This Mean?

 Fundraising is multichannel  Direct mail is still important, but it’s evolving  Word of mouth is fundamental  Social networks are becoming more important  Mobile giving is an emerging trend  Your donor database needs to evolve to reflect these changes.



Recommendations To Improve the Donor Experience

Segment your donor pool based on attitudinal segments, not just demographics  Tag and track your donors by attitudinal groupings  Determine what the key segments in your school are  Develop a marketing strategy that appeals to each key segment  Prioritize your investments based on this marketing strategy  Cultivate your donor pool early. Your current students are your future potential donors.

From “Money for Good: The US Market for Impact Investments and Charitable Gifts from Individual Donors and Investors.”

Suggestions for Tagging and Tracking Donors

Please answer the following three questions:

1.Why do you give to our school?

A. I attended this school B. A friend asked me to C. Donated at 25 th anniversary event D.…

2.What do you like most about our school?

A. Strong religious education/Character education B. More effective at educating children than other schools in the area C. School offers FA to disadvantage children

3.How… Name

Susan Chon Matt Smith A.J. Robinson

Address

1620 L St… 456 2nd St… 79 Oak St…

Donation

$250 $430 $380

When

12/09/10 12/12/10 12/20/10

Segment

Repayer Casual Giver High Impact



Suggestions for Marketing by Segment

Create a marketing strategy that appeals to your target segments: – Select the appropriate channels for communication and solicitation – Review the look and feel of your website and images  Communicate a few, simple messages – Create a version that appeals to 1-2 segments – Include a few key metrics that support your messages – Create brief paragraphs targeting an specific segment 

When you donate to our school, *** cents of each dollar go to financial aid…



Do you remember the great times you had at our school? Well, now we need your help…

Suggestions for Cultivating a Donor Pool Early

 Because an organization’s volunteers are disproportionately likely to give to that organization, create opportunities for your young alumni to volunteer  Create a “tradition” among alumni. Think about ways to keep them in touch with the school: sport tournaments, social media pages, annual events.

 Simple  Unexpected  Concrete  Credible  Emotional  Story

Sticky Messages

Oakwood School

Los Angeles, CA

“Don’t Give” Video http://www.youtube.com/watch?v=nty4GBMuzQY

Proctor Academy

Andover, NH

Chuck’s Corner blog http://www.proctoracademy.org/chucks_corner /

Bernard Zell Anshe Emet Day School

(Chicago, IL)

St. Philip’s Academy (NJ) and Seabury School (WA)

Porter-Gaud School

Charleston, SC

“How Do You Spell Philanthropy?” Video http://www.supportportergaud.com/philanthropy-videos.php

Porter-Gaud School

Charleston, SC

Shopping cart approach: http://www.supportportergaud.com/store/home.php?cat=3

Additional resources

    “Marketing Independent Schools to Generation X and Minority Parents” http://www.nais.org/files/PDFs/MarketingIndependentSchoolstoGenXan dMinorityParentsOct06.pdf

Demographic Profile: America’s Gen X

http://www.metlife.com/assets/cao/mmi/publications/Profiles/mmi-gen x-demographic-profile.pdf

“Generational Differences in Charitable Giving and in Motivations for Giving” http://65.109.19.205/docs/teaching-resources/Generational-Giving Study.pdf

“The Next Generation of American Giving Whitepaper” http://www.convio.com/signup/next-generation/next-generation-of american-giving-whitepaper.html



Made to Stick: Why Some Ideas Survive and Others Die at all booksellers