Australians are widely recognised for their generosity, with a significant portion of the population regularly contributing to charitable causes and volunteering.
For many years, mature Australians have been the primary contributors to charity donations. However, as this generation ages and becomes less involved in giving, the charity sector is facing a major challenge. Younger Australians, who are proving harder to engage, must now be reached to ensure the sector’s future.
Challenges
Many organisations that have long depended on Baby Boomers (born 1946–1964) and the Silent Generation (born 1925–1945) for support now face an uncertain future as their contributions steadily decline with age. Baby Boomers, known for being committed givers, often donate semi-regularly or on a consistent basis throughout the year.
Younger Australians, particularly those in their 20s and 30s, have different donation patterns and distinct expectations when it comes to charitable giving. The 2024 McCrindle Report Empowering Impact: Understanding giving behaviour, volunteering, and advocacy in the not-for-profit landscape found that more than half (51%) of Baby Boomers are considered committed givers, compared to just 35% of Gen Z. Compared to Baby Boomers, younger generations are more likely to be “opportunity givers”. Younger generations are also more likely to support causes that resonate with their personal values.
This change in giving habits calls for a reevaluation of strategies, with a move away from traditional methods towards digital-first approaches. By harnessing online platforms, social media and digital donation systems, charities can engage this new generation of donors effectively and ensure ongoing support for their causes.
Reaching Digital Natives
The charity sector in Australia is highly competitive, with the ACNC registering 60,572 charities in 2024. This figure indicates there is one charity for every 439 individuals. To operate in such a crowded environment, charities must act swiftly and strategically to attract new contributors to safeguard their future.
As Baby Boomers and the Silent Generation contributions decline, charities must connect with younger generations of Australians. To reach these digital natives, charities must embrace digital channels, including social media, online donation systems, and platforms like GoFundMe. To persuade younger generations to give, charities must build trust and inspire action. As younger donors are more motivated by a personal connection to a cause, charities need to create content that aligns with their values
The importance of embracing digital platforms cannot be overstated, as younger Australians are more likely to engage with charities through social media, online donations and digital campaigns. Combining digital outreach with traditional methods will enable charities to connect with a wider range of donors. However, for digital campaigns it is still essential to start with the creation of meaningful, transparent content and to foster a sense of community.
Charities should not abandon traditional communication methods either. A multi-channel approach, combining digital tools with face-to-face interactions, phone calls and direct mail, will help charities cater to a broader range of donor preferences and maintain relationships with both older and younger supporters.
The preference of younger donors to support causes that align with their values means they often seek transparency regarding how their donations are used. Transparent processes and highlighting the tangible impact of donations are vital for establishing trust. Creating opportunities for donors to engage is an effective strategy for relationship building with younger donors. Charities that host fundraising events like charity runs, auctions or community service projects offer younger Australians a more personal, community-driven way to engage. Promoting these events through social media can help charities foster deeper connections with digital natives and increase participation.
With wealth transferring from older generations to younger ones, charities must also invest in long-term engagement strategies, including bequest programs, to ensure future contributions. For their future sustainability charities must seek contributions from younger generations who are digitally connected and motivated by causes that resonate with their personal values. Charities need to adapt their engagement strategies to build trust and inspire the long-term support of these younger donors. Ultimately, by prioritising digital natives, charities can secure the financial and volunteer support they need to thrive in an increasingly digital world.