Spotlight
What Will Giving Look Like in 2035?
Five Predictions for the Future
Table of Contents
Introduction
The giving landscape is ever-changing with the introduction of new and innovative technologies; the emerging influence of new donors (welcome, Gen Z!); and historic environmental, political, and social catalysts. Preparing for the future is a daunting task, particularly when you don’t know what’s coming around the bend. We don’t have a crystal ball, but we have the next best thing at our disposal: data, in combination with strategic research insight.
To forecast what giving will look like in 2035, we used a combination of drivers and signals of change to navigate uncertainty:
- A driver of change is a broader trend that causes significant systemic and cultural change, such as climate change or the widespread adoption of a new technology like Generative AI.
- A signal of change is an event that identifies emerging patterns in an environment. We can get a hint of what the future could look like through the ways people are reacting to significant drivers of change through the signals of change they display.
Identifying a selection of signals—from the over 100 analyzed in this study—can help us to make predictions about how a landscape might change over the next decade.
Five Predictions for the Future
Prediction #1: “Investing in the future” will emerge as a more common motivation for giving.
Creating a “safety net” for the long-term future will be a growing motivator for giving. Although knowing the impact of their effort is vital, they often won’t see the fruits of their giving for a long time.
What’s changing? Signals of change:
When they consider the future, Gen Zers often raise existential concerns: climate change, concern with gaps in social safety networks, and more. They have inherited complex and ever-shifting systems, meeting them with a characteristically metamodern fluidity and the ability to hold two truths at once: “no one will save me from the systemic issues we face” and “we owe it to each other to solve them.” In qualitative interviews, some point to a belief that they are safeguarding their future through investing in causes addressing these issues.
This is a signal of change, with “investment in the future” emerging as a growing motivator of giving, alongside familiar motivators such as a sense of duty and positive associations with generosity. This can range from the more controversial approach of long termism—seen in initiatives like the Patient Philanthropy Fund—to the everyday actions of Gen Zers that illustrate that the insurance for the future is not limited to money, but also time and effort.
When asked in a recent survey from the Blackbaud Institute how they feel they can make the biggest difference, most Gen Zers believe that promoting causes or volunteering can make the most impact. This makes sense given this cohort’s digital prowess and limited discretionary funds. In qualitative interviews, Gen Zers say that social media sheds light on the range of causes, what’s urgent, and how they can help in ways not available to previous generations. In the words of one respondent, “We are given access to information, videos on how other people live, how people are treated. Other generations didn’t understand built-in biases, nuances, cultures…” (Blackbaud Institute, Gen Z at the Table: A Next Generation of Giving Special Report). This represents a potentially significant shift in how givers view donating to causes.
What would you do today if you knew that…
…the expectation of receiving similar benefits in the longer-term future will become a more common driver of giving? How will your organization need to prepare for returns that take much longer? Consider your communication strategy: are you relaying the short- and long-term goals of your mission?
Prediction #2: Technology will foster innovative methods of donation, with an increased emphasis on transparency.
Giving will expand into new formats, such as automated sharing, temporary transfer of ownership, or repurposing of physical and digital resources enabled through blockchain technologies.
What’s changing? Signals of change:
Case studies of organizations across the globe currently using blockchain technologies to power their impact show that these models can lead to increased transparency and trust between donors and fundraisers, as well as open new modalities of giving–like the temporary transfer of resources to meet needs.
What would you do today if you knew that…
…the next generation’s philanthropy may include forms of giving that do not involve any direct shift in ownership of property and resources, and instead could involve temporary custodian or shared guardianship from an available “pool”? What would this look like for the community you serve? How might your organization adapt to increased expectations for transparency in resource allocation created through transparent models like blockchain?
Prediction #3: Response will become increasingly proactive.
Pollution, natural disasters, and other negative events will be more trackable and even algorithmically predictable, to a degree. For example, with deep learning algorithms, the American Red Cross has been able to speed up mapping by using satellite imagery to provide first responders vital information about vulnerable populations.
Organizations may use predictive technologies to proactively direct funds toward urgent needs across the globe.
What’s changing? Signals of change:
Big data, combined with the power of predictive algorithms and use of AI technology, will allow for organizations to rapidly distribute donations but potentially to provide predictive aid as well.
What would you do today if you knew that…
…technology may enable organizations to more accurately predict future needs, and donor expectations may dramatically increase as to the speed with which their donation can make an impact? What new behaviors would your organization need to adopt?
Prediction #4: AI will lead to better collaboration between donors and organizations.
AI will make the giving experience more human-focused—for both nonprofits and givers alike—creating a more targeted, personalized, and collaborative experience. Nonprofits will be able to make even faster decisions on resource allocation, increasing engagement with their donors and fundraisers, helping givers better understand their impact, and aiding in retention.
What’s changing? Signals of change:
AI technology is underpinning new ways to make giving more targeted, for nonprofits and donors. Likewise, the use of AI for menial or repetitive tasks opens the door for nonprofit workers to do the uniquely human work of connecting with donors. For example, organizations have been making use of AI to find which donors were most likely to cancel their monthly donation, and then re-engaging them with a stewardship call. Insights showed that those thanked donors were 2.5 times less likely to cancel their monthly donation.
What would you do today if you knew that…
…expectations for personalization and human connection in the giving experience will increase, not decrease, with the introduction of AI? How can your organization make use of new technology to work alongside the next generation of givers, to make smarter decisions, increase trust, and grow personal connections?
Prediction #5: Online influence will create new paradigms of giving.
Individual social media accounts will become new forms of charities. Individual influencers will become new types of cause-based organizations, crowdsourcing donations for viewers to see immediate impact through emotive content.
What’s changing? Signals of change:
The next generation is used to seeing charitable giving TikTok videos go viral and enjoy seeing the immediate impacts of their charitable giving. Our recent survey on Gen Z giving behavior found that advocacy and promotion on social media topped the list of ways that Gen Z supported the causes or organizations they care about. Fundraising professionals agreed that these are the top ways that Gen Z is currently supporting organizations. 17% have also volunteered their time to a cause. Our research suggests that this helps them feel more connected to the cause, builds trust, and allows them to understand the real impact of their giving actions.
In the future, content creators who crowdsource contributions and create content from the distribution of those resources may partner with existing charitable organizations or may compete with them for engagement and mindshare. Embracing these digital spaces as hubs of engagement, whether that be through advocacy, volunteerism, or the giving of goods and services, will meet Gen Z where they are and end the disconnect that so many feel from traditional philanthropy. Lack of knowledge on how to support an organization was the second highest barrier to entry for Gen Zers, just under lack of funds.
What would you do today if you knew that…
…donors will expect to see content and direct impact for every charitable donation they make? How might the rise of social media charities change the way you share and measure your impact? How might you diversify opportunities to give and to meet Gen Z where they are?
Conclusion
While none of us knows with certainty what the future will hold, the landscape will be shaped by new technologies, new motivations, and new paradigms of giving. Fundraisers who want to thrive in this future need to be aware of these cultural shifts and use them to inform their long-term strategies. As we welcome the changes coming to our sector, we invite you to ask yourself a few final questions:
- How can you leverage the power of AI to enhance your donor relationships?
- How can you collaborate with the next generation of givers to co-create solutions for the future?
- How can you integrate giving into the everyday lives of your supporters, and provide them with timely and relevant impact stories?
Contributors
Laurene Currie, Sr Principal User Experience Researcher, Blackbaud
Lorraine Poer, Director, Blackbaud Institute
Kate Averett Anderson, Research and Publications Lead, Blackbaud Institute