How Gen Z Donors Are Reshaping Philanthropy

SmartChange Staff
blog

Philanthropy is evolving – and Gen Z is right at the center of that transformation. Known for their digital fluency, social consciousness, and demand for authenticity, this generation is bringing fresh energy and expectations to the nonprofit world. They don’t just give, they engage, question, and care deeply about how their contributions create impact. 

If you’re in the nonprofit space, understanding how Gen Z approaches giving isn’t just helpful – it’s essential. Here are three shifts to watch:

1. Values-Driven Giving

For Gen Z, giving is personal. Causes like social justice, climate justice, racial equity, and mental health aren’t just important–they are central to their identity. This generation is thoughtful and intentional. They support organizations that align with their values, not just those with the biggest names or oldest reputations. Traditional fundraising appeals focused solely on financial needs no longer resonate with them. Instead, they want to see tangible proof that their contributions are making a difference.

In fact, a 2022 research study by Konstantinou and Jones  in the International Journal of Nonprofit and Voluntary Sector Marketing found that Gen Z donors are heavily influenced by authenticity, peer recommendations, and social media. They are less likely to trust traditional institutions and more likely to engage with causes that reflect their identities and values.

What this means for nonprofits:  It’s not enough to say your work matters. Show it. Be open, be honest, and lead with impact. 

2. Digital-First Donations

Gen Z grew up online, so it’s no surprise that they expect seamless, digital-first giving experiences. Traditional donation methods, such as mailed checks or in-person fundraisers, are being replaced by online platforms that offer convenience, immediacy, and interactivity. Whether it’s donating through a link in a TikTok bio or supporting a friend’s fundraiser, Gen Z prefers giving that’s quick, mobile-friendly, and integrated into their daily digital lives. 

According to a 2020 study by Deborah Goldring and Carol Azab, Gen Z individuals are highly engaged with social media, which significantly influences their charitable giving behaviors. They tend to rely on online platforms and peer networks to discover and support causes, emphasizing the importance of authenticity and transparency in nonprofit communications. Additionally, Gen Z responds well to gamified giving experiences—such as donation challenges or leaderboards—making the process fun and engaging.

What this means for nonprofits: Engage Gen Z by creating simple, digital challenges to grow your donorbase.

3. Community & Engagement Over One-Time Giving

Unlike previous generations that may have focused on one-time or annual donations, Gen Z isn’t interested in one-time giving. They’re looking to build relationships with the causes and organizations they support. They want to feel like they are part of something bigger. 

Gen Z gravitates towards membership-based donation models, recurring giving programs, and micro-donations (such as spare-change donations that round up purchases) for sustained impact. They are more likely to contribute smaller amounts over time if they feel a sense of belonging to a community that shares their values. Beyond financial contributions, Gen Z is also eager to get involved in non-monetary ways—like volunteering, digital advocacy, or sharing campaigns with their networks. A report by the Case Foundation found that Gen Z donors are more likely than any other generation to give time, not just money, to the causes they care about.

What this means for nonprofits: Create spaces for community, not just transactions. Whether it’s an ambassador program, exclusive donor updates, or an online forum, giving your supporters a sense of belonging can turn a casual donor into a lifelong advocate. 

Moving Forward: How Nonprofits Can Connect with Gen Z

If your organization wants to resonate with the next generation of donors, consider these takeaways: 

  • Show Transparency & Impact: Share real outcomes, not just goals.
  • Think Digital First: Optimize donation experiences for mobile platforms and utilize social media influencers to expand reach. Your platforms should be mobile-friendly and social-media ready.
  • Create Engaging Giving Experiences: Incorporate gamification, challenges, microdonations - and community.

Offer more than a donate button: Let people join in ways that match their time, resources, and passions.

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