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The Online Opportunity with Baby Boomers by Vinay Bhagat, Founder and Chief Strategy Officer, Convio
Research shows that the urge to be part of a community frequently drives philanthropy. A study, conducted in 2000 by Roper Starch Worldwide for CharityChannel, and based on interviews with 1,000 people age 18 and older who were randomly selected from all over the continental United States, reported that 92 percent of respondents said giving to charity allows them to give back to the community. Nearly as many — 87 percent — reported that donating makes them feel part of the community. Only 3 percent of respondents mentioned tax deductions or tax benefits as a reason for donating. Recent research also shows, however, that Boomers are not very involved in the community relative to their counterparts from the previous generation. The recent research report, Reinventing Aging, by the Harvard School of Public Health and MetLife Foundation, stated that: “By every measure of engagement one can think of, boomers do less; they vote less, read newspapers less, are less apt to join churches or civic organizations.”4 This suggests that Boomers will be difficult philanthropic targets. Consequently, traditional donor acquisition approaches like direct mail solicitation alone are unlikely to be effective with this segment. So how should nonprofits adapt their outreach and development strategies to connect with and appeal to Boomers? The Internet is sure to play a much larger role than ever before. Boomers are online in large and increasing numbers. According to research published by the Pew Internet & American Life Project in March 20045, 58 percent of Americans age 50-65 and 75 percent age 30-49 are online, compared with 77 percent of 18-29 year olds. Notably, 22 percent of seniors above the age of 65 are now online compared with 15 percent in 2000. According to Media Metrix, the number of Boomers and seniors on the Internet grew by more than 18 percent in 2001, making them the fastest growing Internet population6. Moreover, online Boomers are relatively heavy users of the Internet, accessing healthcare information and booking travel online. As Boomers age, they will replace the older Americans, who have been most resistant to going online, as key philanthropic targets. The Internet and the practice of online constituent relationship management gives nonprofits an efficient and highly cost effective way to reach this new generation of prospects and to develop community. As Stephen Nill points out in his May 23, 2000 CharityChannel article, “Why Do Donors Give?,” contrary to the initial belief that the Internet creates social isolation, studies are now showing that the use of the Internet strengthens relationships and increases contact with others, especially friends and family members. (See Pew Internet & American Life Project http://www.pewinternet.org/releases/release.asp?id=3). Online community building strategies include establishing regular, non-solicitation-oriented communications with constituents; enabling two-way dialog through surveys or email response; enabling individuals to share their stories online; and facilitating connections and discourse between individuals. Enabling existing supporters to effectively reach out to others online also is a strategy with strong potential. The Reinventing Aging report stated that “the biggest single inducement to volunteer is being asked by someone with whom one has an established relationship.”7 An emerging online fundraising technique involves leveraging current supporters to recruit others. Known as peer-to-peer fundraising, this technique has been used by many health charities, such as the American Diabetes Association for several years in conjunction with its events (walks, bike rides etc.). Increasingly, other types of organizations in addition to health charities are using peer-to-peer fundraising outside of the context of traditional events. For example, the anti-hunger organization, Share Our Strength, has for the last two years organized a grassroots, community-based, peer-to-peer fundraising effort called the “Great American Bake Sale,” which has a successful online component. Both the American Diabetes Association and Share Our Strength leverage online constituent relationship management and peer-to-peer fundraising technology from Convio. Political campaigns now are using the same capabilities to enable grassroots fundraising, empowering supporters to run their own fundraising events (e.g., so-called house parties used extensively and popularized by the Dean for America presidential campaign) and virtual appeals. Enabling online advocacy or participation in the legislative process also helps build community. In Convio’s work with nonprofit advocacy organizations, the company has seen that online appeals to existing advocates frequently drive significant referrals to friends. It is common that 10 percent of the people taking action (responding to an alert by sending a message electronically or via fax or letter to their appropriate legislative targets) were not previously on the nonprofit’s list, but were referred by friends who received the alert and forwarded it to them. In conclusion, nonprofit organizations must adapt to the coming tide of Boomers and formulate plans that enable developing community. The Internet and the practice of online constituent relationship management will be a very important part of this strategy.
1 Reinventing Aging; Baby boomers and civic engagement Harvard School of Public Health-MetLife Foundation Initiative on Retirement and Civic Engagement. Have a colleague who might be interested in this topic? Why not forward this article?
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“Baby Boomers,” the 77 million Americans born during the boom years of 1946 to 1964, represent an enormous opportunity for nonprofit organizations1. As Boomers age, there will be the largest ever intergenerational transfer of wealth — $18 trillion2. As they move closer to retirement, Boomers also have the potential to provide a tremendous source of paid and non-paid labor for nonprofits. In a 1999 AARP survey of Boomers on how they envision their retirement years, 27 percent said they expect to volunteer more in their communities when they retire3.
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