New Frontiers in Philanthropy

The future will bring new models for philanthropic messaging and donor interactions, shaped by demographic shifts, changing perceptions of institutions, and new approaches to audience engagement. To help leaders stay relevant in the future, the ASAE ForesightWorks  (opens in a new tab) “Philanthropy Reshaped” action brief recommends a variety of actions associations can take to highlight the value of giving.

Donor engagement is critical as giving declines among key segments. From 2003 to 2013, itemized charitable deductions from those making $100,000 or more increased by 40 percent, while donations from those making less than $100,000 declined by 34 percent. Making online giving easier and allowing for donations of smaller or incremental gifts may become necessary to meet donors where they are.

Foundations should operate with transparency before donors and the public demand it. Due to public skepticism of institutions and increasing demands for transparency, philanthropic institutions are under a microscope. A growing mistrust of large institutions means that established philanthropic organizations will not be able to rely on their reputation. Leaders should have a comprehensive response plan when their ethics are called into question.

Younger generations are particularly interested in ensuring that their donations go toward activities and missions that reflect their interests. According to the “Transparent Organizational Ethics” action brief, 70 percent of American millennials say their personal values are the driving force behind their decision making. They want to feel personally connected to your work, believe in your mission, and, often, engage beyond a financial contribution.

Storytelling is a way to authentically connect people to the work of your foundation. In all of these efforts, the story of your foundation is one of your most powerful assets. The mission, and stories that support it, can be disseminated across social media to reach new donors and expand your base with peer-to-peer engagement. Targeted messaging to donors should continue after they give to highlight how their support makes a difference.

Organizations may need to leverage technology in new ways to stay relevant. Predictive analytics can be applied to existing data to identify potential donors. Insights from data plus social media reach create opportunities for foundations to segment audiences and tell stories that connect with members to foster engagement and spread messages.

Association foundations and other philanthropic organizations have many tools at their disposal. Widely available technology can help you identify, grow, and retain your donor base. But the most valuable tools involve invoking your mission, telling a compelling story about your foundation, and explaining how donations are used.