Collective Giving: A Game-changer for Nonprofits

Philanthropy is no longer just about making a donation and calling it a day—it’s about creating genuine connections and excitement that translate into real impact. Philanthropy is shifting gears, and collective giving is leading the charge.

Collective giving empowers like-hearted and like-minded people to band together in micro-communities to give toward a purpose and mission bigger than themselves. In our increasingly tech-driven and now AI-focused world, face-to-face interactions and true connections are proving to be more important and valuable than ever. 

And for Christian nonprofits? This type of giving may be the missing link to revitalizing your organization’s mission and re-energizing your donors.

What is a Giving Circle?

Collective giving is known in different groups by different names. These terms may include terms like giving circles, giving chapters, collective giving groups or giving projects. Essentially, a giving circle is a group of donors that together give intentionally and strategically toward a specific project, cause or mission. Sizes of groups may range from a few people to a few hundred.

The members of these groups often share a common thread of belief that they can leverage the power of working together to accomplish more than they can on their own. Practically speaking, this may look like a group of donors inviting friends, family or their small group to give toward a specific project with a cause close to their hearts.

Why Collective Giving is All the Rage

The buzz around collective giving isn’t just hype—it’s rooted in powerful outcomes. Look at Sara Lomelin’s TED Talk (TED Conferences, 2022), where she champions giving circles and collective generosity. With more than 1.5 million views at this article was published, it’s clear the message is resonating. 

Giving circles came on the scene in the early 2000’s, though there have been a handful around for decades. Since 2017, the collective giving movement has skyrocketed. Nearly 4,000 groups have rallied 370,000 philanthropists and raised over $3.1 billion in donations—a more than 140% increase in both participation and funding over six years (Dorothy A. Johnson Center for Philanthropy).

For Christian nonprofits, this is more than a trend—it’s an opportunity to encourage your ministry partners to live out the call God gives us in the Bible to live generous lives in community with one another. Collective giving can be a way to develop donors into true advocates for your mission. What better way to engage and educate others than to invite them face-to-face into giving with you and a handful of others? When partners of your ministry see to an initiative completed, it brings a deeper sense of connection to the mission of the organization.

Big Impact, Close to Home

Another aspect of collective giving that sets it apart is its ability to uplift local communities. With 88% of philanthropic funding going to the top 5% of nonprofits (Dorothy A. Johnson Center for Philanthropy), smaller charities often get overlooked—but not in giving circles. These groups champion smaller nonprofits and community organizations, focusing on grassroots initiatives that make a difference.

Whether it’s a small group meeting in someone’s living room or a larger nonprofit-led collective, nonprofits can use this strategy to keep things personal, mission-driven, and impactful. If you have a donor with a heart for a specific project, leading them toward collective giving is a powerful way to engage them on a deeper level. 

Women Are Changing the Game

Women have always played an important role in philanthropy and collective giving is no exception. Giving circles tend to be dominated by women with 70% of all giving circle members being women. Women-only giving groups have grown from 53% in 2006 to 60% in 2023 (Bearman, 2007; Eikenberry et al., 2017). 

Building Together

The heart of collective giving lies in collaboration. Working together, sharing resources, and reimagining how we make an impact is exactly what many faith-based organizations aim to do. As this movement continues to grow, it’s clear that collective giving isn’t merely another trend; it’s a powerful way forward for philanthropy. This powerful way of engaging your giving partners is one we suggest considering how to incorporate into your donor development strategy if you haven’t already.

Ready to take action? If you need fresh takes on how to implement collective giving, we’re here to help! 

Book a discovery call with us, and let’s explore how we can make this strategy work for your unique mission and donors.

Or if you’d like to better understand how collective giving looks from a donor’s experience listen to this podcast where Josh and Kaitlin Saenz, founders of Compel You, share how they were invited into this transformative way of giving. 

An Open Letter to Every Donor Everywhere

Dear Donor, 

It’s that time of year. Yes, the time of year where walking out and opening the mailbox affords you a real chance of opening a real card! Christmas and holiday cards are being sent and received. This is the time of year where merriment and cheer abounds.

But most of all, this time of year we celebrate the birth of our Lord Jesus Christ. 

We celebrate the wonder, mystery and fulfillment of hundreds of years of prophecy being fulfilled after hundreds of years of God’s people waiting for their Savior. It is a wondrous time of year to be quiet and reflect on the beauty of it all as a Jesus follower. 

His birth and life on Earth is truly one of the greatest gifts God could have given us. In His grand and lavish generosity, God lived His character out before us so that we might truly know Him.

It is in the spirit of great generosity, we reach out to you today. We know as a donor, you’re probably receiving all the end of year letters from your favorite nonprofits, ones you’ve supported in the past, and maybe some organizations you don’t support but magically got added to their mailing list! Does it feel overwhelming? 

That’s a rhetorical question.. we know it does. 

Being asked for more while you’re already doing all the things, juggling the Christmas shopping and trying your best to focus your heart on why we celebrate Christmas. We get it. We are working parents, homeschooling our two boys and juggling all the things just like you.

So we want to take a moment to be as frank and transparent as to why you keep getting these letters every December, year after year.

Does an end-of-year gift really make that much of a difference? Or are organizations just trying to get a little more to pad the budget for January?

The answer is… yes, your year end gift makes a real difference and no, organizations are not just trying to pad budgets!

It’s estimated that 30 percent of annual giving for a nonprofit happens in December. We’re not just hoping for more giving and generosity from our wonderful partners. We truly rely on it. How our nonprofits exist and engage effectively in our missions directly rely on the giving received in December. 

Ten percent of all annual donations come in during the final three days of the year. Would it be nice to understand a budget and forecast next year’s planning ahead of time? It sure would. But are we grateful for last minute gifts? Absolutely!

When we reach out, we do so in unity and the same oneness of our God who made us generous like Him. We know you share a heart and a passion for changing lives in the same way we do. And we want you to be part of that! 

When we reach out, we’re doing so with the understanding and knowing, based on years past, that maybe you’ve meant to make a gift. But life got busy, and you need a reminder.

We rely on God first and foremost to fulfill our missions. But knowing the realities of December giving for so many, we know He uses this month to spur on His mission. 

Our hope is that when you receive that end of year letter this year from your favorite nonprofits, maybe you’d take a moment to pray and consider whether you can make a year end gift. It might be a large gift, but maybe it’s not. Maybe it’s one given with a cheerful heart and a whole lot of prayer that God would multiply your faithful gift. 

We work with a wide range of nonprofits that seek justice, provide for the poor, spread the gospel of Hope. And on behalf of organizations, everywhere, we are so thankful for your generosity and giving all year! We are especially grateful for your December gifts that truly give a stable financial footing to our missions and the work on the ground.

May God bless you with His peace and joy this Christmas. May you know His ever-flowing generosity toward you always!

Merry Christmas and Happy New Year,

Josh and Kaitlin Saenz

Compel You 

Where is Gen Z going with Giving?

Understanding Generation Z Donors: Trends and Insights for Nonprofits

Gen Z… This generation freely uses “bet” instead of yes, confusing everyone older than them.  This generation unashamedly asks Siri questions like she’s the expert of all things. This generation, at least in America, doesn’t know life without social media or a smartphone in hand. If you’re reading this, we’re betting you’re not from Gen Z and this generation seems quite different than yours.  

Gen Z is currently the youngest generation of adult donors. The youngest of Gen Z is currently just 12 years old and the oldest is 27. This generation is stepping into the philanthropic world with unique perspectives and behaviors that differ significantly from their elders (yes, that’s us).

While a portion of this generation is still growing up, the other portion has reached adulthood. This portion is young enough to be considered testing out their belief systems as it relates to giving. There’s so much for us to learn about this generation as they discover what philanthropy looks like and means for themselves. Only time will tell. So for now, let’s look at this coming-of-age generation through the lens of “what could their impact on charity be?” 

Economic Realities Shape Philanthropic Expectations

Gen Z has come of age during challenging economic times, a worldwide pandemic, and social unrest. Like each generation before, their world influences their approach to giving. Aimée Laramore from the Johnson Center highlights this connection in this online article, "the reality of their lives demands that the philanthropic sector engages their giving with an understanding of how their economic realities shape their expectations and their philanthropic behavior." 

On top of these national and global phenomena, Gen Z is navigating student debt, job instability, and rising living costs. An Experian survey (2023) found that 61% of Gen Zers say they are “somewhat or very financially dependent” on their parents. The majority of this generation likely doesn’t have much to financially give–yet. This appears to make them cautious about financial contributions, but it doesn’t diminish their commitment to causes near to their heart.

Diverse Forms of Support

Data shows that Gen Z gives financially, but it’s not much as many are still constrained by early careers and tight budgets. Unsurprisingly they turn to leveraging their time, talent, testimony and ties instead. According to the Johnson Center, next-gen donors are three times more likely than older donors to engage in advocacy for an organization or cause and 20.3% of Gen Zers report volunteering in a formal capacity. 

Members of Gen Z contribute in ways such as:

In-Kind Donations: Gen Zers often prefer to give items rather than cash. This could be anything from clothing for a local shelter to supplies for community initiatives.

Encouragement and Engagement: They actively promote causes by encouraging friends and family to get involved, amplifying their support through personal networks.

Volunteering: Many Gen Zers are willing to dedicate their time to volunteer. A survey by Bloomerang found that 51% of Gen Z donors also volunteered their time. This reinforces the idea that their commitment extends beyond monetary contributions. It’s hard to tell yet whether this will be a defining characteristic of this generation or if it’s more attributed to their stage of life, seeing as ages range from 12-27.   

Social Media Advocacy: Sharing social media posts from their favorite nonprofits is a popular way for Gen Z to spread awareness and engage their followers. 

Deep Connections to Causes

Unlike previous generations, like Baby Boomers, who may have prioritized larger, established organizations, Gen Z seeks authenticity and relatability. They value personal connections and often support nonprofits based on recommendations from friends, family, or peers. This social aspect of giving is critical—Gen Z wants to feel personally connected to the organizations they choose to support.

When surveyed about whether they conduct research on a nonprofit before donating, adult Gen Zers were the most likely to vet an organization with 77.9% saying yes compared to the next highest group, Gen X, at 75.6%. 

Social Media or Social Networks?

When it comes to discovering nonprofits, Gen Z primarily relies on their social networks, including family, friends, and peers, along with social media platforms like Instagram and Tik Tok. 

This generation has grown up with influencers and social media. So when it comes to social media, they are intuitive, well-versed and understand its potential for good. This can mean making money with it or using social media for advocacy. Granted, some of this generation may not be old enough to even be using social media. But if they get excited about something or a cause, watch out! They might blow up the internet with it. 

Social media serves as a tool for discovery but also as platforms for engagement. According to the Generation Giving survey by Bloomerang, Gen Z is the generation most excited to donate using digital wallets. This reflects their comfort with technology and online transactions compared to older generations. 

In contrast to their preference of digital giving, in-person and hybrid fundraising events resonate strongly with Gen Z, who appreciate the opportunity to connect directly with causes and fellow supporters. This might surprise older generations because it’s an easy assumption to think Gen Z prefers virtual interactions. That’s not entirely true. 

Sure, they’ve grown up with phones in their pockets, Tik Tok, and the world at their fingertips. But it’s strong evidence to prove this technology-centric life doesn’t replace that God-given desire for face-to-face, real relationships. Gen Z desires community. 

Engaging Your Gen Z Donors

As Gen Z continues to mature and become more prevalent with their philanthropy, keep trying to learn and understand them, even you really just don’t get them. Engage them in authentic, relatable ways. Make sure your messaging reflects that you understand their economic realities but see their heart for making a difference. Don’t assume they value digital connection over personal connection. For a generation where authenticity and connection are more valuable than ever, embracing these values will help your nonprofit catch the attention of Gen Z donors and cultivate lasting relationships with them. 

Millennials and Philanthropy: How This Generation is Revolutionizing Giving

Lazy. Entitled. Financially irresponsible. Job-hoppers. Screen-obsessed. Naive. 

Do these stereotypes come to mind when you hear the term Millennial? Though sometimes stereotyped in a negative light by older generations, Millennials—those born between 1980 and 1996(ish)—are shaking up the nonprofit world with a blend of tech-savvy and heart-driven generosity. 

Like each generation, Millennials are shaped in many ways by the culture that surrounded them in the years they were born and grew up, for better or for worse. If you’re just catching the buzz around Millennial giving, you’re in for a treat as we dive into how this generation is changing the game in philanthropy and the heart behind what fuels their giving. 

Generosity in Action

First up, let’s bust a myth: Millennials aren’t always glued to their screens. In 2023, 84% of Millennials made charitable donations. And it doesn’t stop there. On average, they support five different nonprofits each year, focusing on causes that light a fire in their hearts. Whether it’s environmental sustainability, education, social justice, or healthcare, these causes are as diverse as the generation itself.

More Than Just Spare Change

Millennials are also more than just check writers. They’re all about rolling up their sleeves and getting work done. The Corporation for National and Community Service (AmeriCorps) reported that Millennials contributed roughly 1.5 billion hours of volunteer service in a year and that volunteer service is worth an estimated $36.7 billion! From organizing local clean-ups to mentoring youth, they’re turning their passion into action.

Tech-Savvy Impact

This generation is unique as it holds men and women who grew up with memories of life before personal computers, cell phones, the Internet and those who can’t remember life without any of those. Millennials are using technology to supercharge their philanthropy. Platforms like GoFundMe, DonorsChoose, and Kickstarter make it easy to find and support specific projects. Social media is their megaphone, amplifying their efforts and raising awareness for causes with just a few clicks.

Causes That Matter

So, what gets Millennials fired up? Think equality and inclusion, mental health awareness, environmental conservation, and animal welfare. Their giving reflects a deep commitment and desire to create positive social impact, prioritizing issues over institutions. According to the Millennial Impact Report of 2023, Millennials care more about social issues rather than the organizations, using their collective voice, and supporting others and the greater good over partisanship. 

It’s less about the organization and more about the cause—something that’s reshaping how nonprofits engage with this generation. 

Transparency Is Key

Millennials crave transparency. They need to see where their money goes and how it makes a difference. Over 90% of Millennials said they’d stop giving to an organization if they lost trust. Transparency about finances, operations, and impact isn’t just a nice-to-have; it’s essential for building lasting relationships with this generation. In a reflection of that trust, more than three-fourths said they would stop giving if they weren't told how their contributions help, according to the Millennial Impact Study.

Creative Financial Solutions

Student loans and rising housing costs? No problem. Millennials are masters of creative giving. They’re embracing monthly donation programs, workplace giving campaigns, and peer-to-peer fundraising to support nonprofits regularly, despite financial constraints. The number one influence on millennial engagement comes from interaction with their peers. Don’t be afraid to invite this generation into giving through their community–it’s part of who they are. And their commitment to giving is strong, even if the dollar amounts aren’t always huge.

Speaking Their Language

To truly engage Millennials, you need to recognize their multifaceted contributions. Though Millennials are not yet giving in high dollar amounts, they are engaged in causes they are passionate about. Finding ways for them to contribute their time and talents toward causes they believe in can wield great results for your organization. It’s all about harnessing the energy and enthusiasm this generation holds for the greater good. 

Volunteering five hours is as valuable to a Millennial as a monetary donation. This attitude reflects their desire to build authentic, personal relationships with the people and causes they serve. Honor their time, skills, and activism, and you’ll build a meaningful connection. You’ll also establish trust as you show them you value not just their treasures, but their time and talent too. 

Looking Ahead

As Millennials continue to advance in their careers and build their wealth, their financial influence on philanthropy will only grow. Their passion for transparency and legitimate social impact, along with their unique blend of generosity, activism, and tech savviness will continue shaping the future of Christian nonprofits. This dynamic generation's commitment to people, diverse causes and innovative giving methods is transforming communities. Engage your Millennial donors and get them excited about your cause. Don’t underestimate the difference the impact their support can make for your mission!

Sources: https://www.themillennialimpact.com/sites/default/files/reports/MIR_KeyTakeaways-2.pdf

https://www.americorps.gov/sites/default/files/document/Volunteering_in_America_Demographics_508.pdf

https://www.themillennialimpact.com/sites/default/files/images/2018/MIR-10-Years-Looking-Back.pdf