Demographics of fundraising and the need for charity innovation
The changing demographics of wealth and philanthropy in the US will put pressure on charities’ fundraising efforts. Most of the donations that funded the growth of today’s major charities have come from what demographers call the War Generations, born between 1905 and 1944, and the Boomers, born between 1945 and 1964. Together these generations have been responsible for the vast majority of charitable giving in decades past. Because the War Generations are reaching the end of their lives, the Boomers are carrying most of the “giving” weight. Because these generations are similar in size, giving has not dropped significantly.
The two generations following Boomers vary greatly in size: Generation X includes about 49 million members; Generation Y (Millenials), about 86 million. For the period of time that Gen X, born between 1965 and 1974, dominates the work force and giving world, charities will have fewer donors than during the height of Boomer giving. Smaller generation means less giving. And despite the enormous size of the Millenial generation, charities will not be able to rely upon this generation for giving in the same way as their elders. Millenials will bear the weight of unfunded entitlements, meaning they will face increased taxes and less cash flow for giving.
It’s not just the size of the generations that will change the face of giving. First, the diversity of these generations will affect where they send giving dollars. The Millenial generation is more ethnically diverse, including twice as many Hispanic members as the Boomers. Further, Barna research suggests that this generation sees a 43% drop off in church attendance from high school through age 30. Barna offers a variety of explanations for this, but essentially this means that Millenials will not fund the same types of charitable efforts as their parents and grandparents.
Further, generational differences will also change how they give. Generation X is more skeptical than the Boomer generation, and typically wants to be very involved in the giving process. Millennials are more cause-oriented than any generation before them and are less likely to draw a firm distinction between charity and business. So, if nonprofits are doing less for their cause than social enterprises, for example, those nonprofits won’t be receiving Millennial resources
Hells kitchen's plant based PS Kitchen gives 100% of its profits to charity. Talk about a guilt-free meal! Not to mention, their drinks are fabulous as well.
How does a family of seven from Ohio end up living in the midst of goat herders in Kyrgyzstan and developing access to worldwide markets for luxury cashmere? After hearing Sy Belohlevek tell his family's story, the answer seems to be God and grit.
June Cashmere's 100% cashmere yarns are collected directly from Kyrgyz shepherds living on small family farms along the ancient Silk Road amidst the soaring mountains of Central Asia. June is the Kyrgyz word for animal fiber, which is a centuries old vital resource and essential element of their nomadic lifestyle. From felted woolen rugs, to the clothes on their backs, june has made itself an indelible part of Kyrgyz culture. Additionally, the uniquely warm properties of the cashmere from their goats allow them to sustain cold and long winters in the vast mountains in Kyrgyzstan.
After successful careers in the musical sales and financial services business, Joe was ready for a new challenge. So, during May 2013, he went on a 4-day fast and committed to God to sow (invest and give) 90% of his personal income to the work of the Kingdom of God on earth, and to live on 10% of his income.
The very next day, while driving, Joe saw a sign announcing a new Wal-Mart Store opening in his area. He felt God speak to his heart to contact Wal-Mart and try to begin a business relationship. Having spent his Saturdays serving meals to homeless men, Joe developed a burden to help. Over time that burden grew into an idea to offer affordable insurance to help people land on their feet even after the toughest life situations.
Ethiopia has changed since the famine of the 1980's that prompted pop stars to raise funds through a lovely concert and catchy tunes. Explore the current landscape with one of our portfolio companies.
Verde Beef Processing is a feed production, cattle fattening and beef processing business Located in Ethiopia’s largest state, Oromia (about 3 hours from Addis Ababa), Verde Beef is raising the country’s largest herd of cattle.
Verde has been leasing a processing facility but is quickly outgrowing it. Overall, this business is on track to scale to $100mm in revenue and $38M EBITDA per year. At that level of productivity the company will employ 2,500, and create 50,000 new jobs in the beef industry.
Work is how I amass enough power and wealth to make other people work for me.
Business is the means by which a few owners get rich through the effort of others.
The highest calling of a Christian in business is to make a lot of money to give away to the church and ministries.
We may not say it quite like this, but many of operate as if these lies and half-truths are true. If this is how we view work, it's no wonder that 70% of Americans hate their jobs or are completely disengaged (according to a Pew Research Poll.) This lame understanding of work also limits our potential to partner with God in some really amazing ways. By renewing our theology of work, we can better understand the role of business in the Kingdom of God. This is essential if we are to realize the power of business to serve as winsome witnesses of the Gospel, creatively demonstrating our faith by being part of the solution.
Pete Ochs" business Seat King exemplifies the best of "Redemptive Business" as a means of creating jobs and transforming lives.
Expanding on traditional Evangelism/Discipleship, the idea of Redemptive Business borrows heavily from Praxis Labs’ concept of a “redemptive entrepreneur”, or one who seeks to embody the gospel in creating and building a venture that leaves a meaningful impact on the world.
In the first 18 months of Impact Foundation, we have place $30 Million in 53 Impact Companies, spanning the globe from Silicon Valley to Laos. The impact of those investments encompasses most of the main categories of transformation sought by traditional charity plus a few areas that charity cannot reach. Read about the causes and places that our investments seeks to transform.
Some of our more devoted followers may have noticed that some months ago Impact Foundation and Olive Tree Investments joined forces. If you haven't noticed, or are confused by the combination, this blog is for you.
It’s a natural fit as both groups put charitable capital to work in enterprises that seek measurable social and kingdom transformation while earning money. Impact Foundation offers donors a flexible tool for charitable investment, while Olive Tree searches the globe for the best transformative businesses in emerging markets.
We are excited to welcome Steve Doerr to the team. He recently retired as an executive at ExxonMobil after more than 27 years. As Chief Operating Officer, Steve will help us shore up Impact Foundation's infrastructure and position us for the next phases of growth.
Steve has extensive experience managing diverse global portfolios and has lived and worked in Europe, Asia, the Middle East and Africa as well as the US.
In the spring of 1984 my wife and I were standing in a field in Guatemala on an insight trip led by Opportunity International. I understood for the first time the power of business to accelerate the Great Commandment. I knew empirically and from experience that charity alone cannot eliminate extreme poverty; it's a critical piece of the puzzle, but insufficient on its own. That moment in Guatemala crystallized for me the desire to devote my life to serving the poor with sustainable, finance-driven solutions: not just to make the poor a little less poor but to partner with God in His work of redeeming the world and spreading the hope of the gospel.