Direct Mail Study Mirrors Workplace Giving Trends

As reported today today in the Chronicle of Philanthropy, a new study finds that the number of people giving via direct mail is declining but those who are still giving are giving more.  The study was conducted by Target Analysis Group, a Boston-based consulting firm.  A summary of the findings is posed on the company's web site, www.targetanalysis.com.

That same trend has been evident in employee at-work fund drives for more than a decade.  The percentage of employees participating has been decreasing, but the average gift has been increasing.  So far the increase in gift size has offset the decrease in number of givers.  As a result, overall revenue has actually increased.  In the long term, however, fewer givers giving more is an unsustainable trend.  Everyone in our business is worried about it, but nobody has been able to reverse it.  That's not for lack of trying.  The United Ways, the Combined Federal Campaign, the workplace federated groups, and many companies have tried various techniques designed to increase campaign participation.  None of them have worked.

For both direct mail and workplace giving, the cause of the decline of the number of people giving appears to be the same --  those who have traditionally responded well to direct mail/workplace appeals (that is, older people) are moving out of the pool of givers while younger people are not replacing them.  (It is unclear whether younger people are in fact giving less or just giving differently).

The conventional wisdom is that direct mail is not as effective with younger people in our brave new online world.  There are fewer likely theories as to why the fewer givers/larger gifts trend is happening at work.  The integration of web-based, online solicitation in at-work fund drives, which presumably is more effective with younger workers, is well established in private sector corporate fund drives.  So why isn't it working to increase the percentage of employee participation?

If you think you know the answer, I'd sure like to hear it.

Comments

[Ed Boyer]

The answer is that in today's society where we have removed God from virtually everything - fewer young people grow up with the clearly Judeo-Christian ethic of giving to others. That surely is not a secular ethic.

[Elisa]

Younger people have been more often lead down paths which wind up being a waste of time or scam. They've also realized that just because something is free doesn't make it worth having.
Younger people don't give because they don't see a clear benefit. To often donations are not distributed properly and/or if someone is busy giving blood someone else is taking credit for their work. Most feel they will give on their own accord and find their own avenues to help society.