connections

Welcome to our special guest blog post series -"Millennial Perspectives: Voices of a Giving Generation." We hope you will join us each week until the Millennial Donor Summit on June 22, 2011, as we explore Millennial engagement with a variety of leading experts and practitioners.

This week, we've invited Daniel Kaufman, Co-Founder of the One Percent Foundation as well as Co-Founder of Third Plateau Social Impact Strategies, a consulting firm that helps nonprofits develop and implement Millennial engagement strategies, to provide his take on how to tackle engagement barriers when it comes to fundraising, engagement and advocacy.

If you are reading this, you likely fall into one of two categories: either you work at a nonprofit or you are a Millennial (I’m hoping a large percentage of you are both!). As such, I’m guessing one of the following two scenarios sounds familiar:

If you are a nonprofit: You are sitting around a conference room table trying to figure out how to make your budget for the year. You and your dedicated, underpaid coworkers are trying to figure out the quickest, most effective fundraising strategy so that your organization can focus on changing the world. Inevitably you realize that you can get the most bang for your buck by focusing on major donors and large foundations. It certainly doesn’t make sense to invest time cultivating Millennials who might write a $50 check.

If you are a Millennial: You care about giving back, but you either don’t think you can afford to make a donation, don’t know which organizations are effective, and/or you don’t think you can achieve impact with your small donation. Most importantly, organizations that you might care about aren’t asking you to engage in a meaningful way. As a result, much of your giving tends to be in response to friends asking you to sponsor them in a race or support them at a fundraiser.

If we were on Craigslist, both sides would be posting under the category of Nonprofit-Millennial Missed Connections. Most nonprofits need operating funds now and can’t justify investing in Millennial donor cultivation that pays off over the long-term. Most Millennials take this lack of communication as meaning that nonprofits don’t value their engagement. The two parties seek each other but don’t actually talk to one another.

The findings in the Millennial Donors Report underscore the opportunity if we can change this reality. Millennials are eager to engage, so long as they have a trustworthy partner—whether that trust comes from the endorsement of their social networks, organizational transparency, or access to organizational leadership. This begs the question: How do Millennials and nonprofits work together to build and leverage trust?

Enter the One Percent Foundation (OPF), a Millennial-driven solution to the Missed Connection problem, one that seeks to empower Millennials to give in a sustained, generous, and strategic manner. OPF runs a network of online giving circles that engage Millennials earning an income for the first time. We seek to train, educate and engage our participants to use their limited resources to fund the ideas, organizations, and innovation that they are passionate about. Ultimately, OPF is building a broad-based movement of Millennial philanthropists that challenges the status quo by democratizing giving.

OPF’s giving circle model is relatively straightforward. Participants register online, commit to give at least one percent of their annual income to philanthropic causes, and establish monthly recurring donations through our website. We aggregate participants’ giving and facilitate a crowd-sourced, participatory grantmaking program whereby participants identify, assess, and ultimately select grant recipients. The One Percent Foundation program tackles the three key barriers to meaningful Millennial participation (affordability, knowledge, and impact). 

Embedded in OPF’s grantmaking process is the notion that our process breeds trust and thereby reinforces engagement. The first step of an OPF grant cycle is a nomination period whereby anyone in the OPF community (Millennials giving 1%) can recommend an organization to the circle. During the second phase, a small group of volunteers from the OPF community are trained to conduct due diligence on the nominated organizations. This “working group” speaks to staff members of the nominated nonprofits, examines theories of change, vets the organizations’ financials, and conducts independent research. OPF facilitates a conversation with the working group to narrow all of the nominees to five finalists. During the final phase, OPF educates the entire community about the finalists and asks them to vote online. The two organizations that receive the most votes receive a grant from OPF.

OPF’s grantmaking process tackles the three fundamental trust concerns of Millennials: organizations are only considered after they are endorsed by someone in the social network, nominees are vetted by the community, and participants get access to organizational leaders.

Ultimately, OPF is nothing more than a design solution to the Nonprofit-Millennial Missed Connection problem. We have created the conditions for Millennials to be able to easily access information and interact with nonprofits so they feel comfortable giving proactively.

I invite you to join me for my session at the Millennial Donor Summit on June 22 to learn more about the One Percent Foundation and how OPF and other creative solutions can enable nonprofits to better engage Millennials.