Impactful Giving: Give Now, Pay Later for Young Alumni & Young Donors
More than anything else, here at Givzey, we hear from nonprofit organizations, colleges, universities, independent schools, and hospitals eager to appeal to young alumni and young donors.
It makes sense. Give Now, Pay Later grew from Buy Now, Pay Later (BNPL), which is extremely popular with Gen Zers and Millennials. And, the top reasons that people use BNPL are for transparency and to be more proactive about personal finances.
Give Now, Pay Later Overcomes Cashflow and Impact Objections
As fundraisers, when we reach our young donors or young alumni, aside from stewardship, we're typically looking to inspire giving for the first time, renew gifts, or seek increased gifts. Young donors and young alumni often believe that they aren't in a position to make an impact yet, so they don't give. Give Now, Pay Later is a tool to overcome these objections.
Typically, when we think of young donors, especially in Higher Education, we think of those who are 0-5 or 0-10 years post-graduation. However, consider that those in their 30s and 40s can also be considered young donors. Millennials and Gen Zers have seen more than one recession and large economic changes in their adult lives and formative years. As a result, many are more cash-sensitive than previous generations in the same age range.
What do we mean by cash-sensitive? Typically, these folks have not hit the pinnacle of their careers yet, may have young families, and likely have an eye on what's happening with the current job market. They are likely to keep a close eye on monthly budgets and require flexibility if they are going to fit giving into their regular lives.
Additionally, when donors have these characteristics, the cash they have on hand plays into the impact they think they can make.
Many times when young alumni and young donors don't give, it's because they do not believe that what they can give will make an impact.
When young alumni and young donors delay giving, it's obviously not the outcome we're looking for as fundraisers. What many don't realize is that by stalling building a culture of philanthropy, the habit of giving, then donors become less likely to give in general. Give Now, Pay Later offers cash-sensitive young alumni and young donors access to four monthly budget cycles, as opposed to one.
When donors see that splitting gifts through Give Now, Pay Later is an option, not only are they able to open constricted monthly budgets, but they're also able to see a greater impact from giving – empowering them in ways they didn't think were possible.
Why Use Give Now, Pay Later When We Accept Pledges?
There are two major differences between pledges and Give Now, Pay Later. First, with Give Now, Pay Later, the nonprofit receives the full gift up front. Second, the nonprofit is not on the hook for fulfilling a donor's pledge or the administrative overhead that comes with following up with donors to make pledge payments.
Some of this work is automated. However, Advancement Services and fundraisers are involved in following up with donors for every single outstanding pledge that isn't automated. This personal touch works with large gifts of $10,000 and more, but we're talking about smaller gifts. Organizations don't have the staff to follow up with donors who gave $500 and split it over a handful of months. This is specifically where GNPL shines.
Give Now, Pay Later allows nonprofits to pass the responsibility of following up and bringing revenue in the door onto Givzey, without any risk.
Empower Your Donors To Make a Greater Impact
By offsetting constrictions and restraints on a donor's budget, GNPL empowers them in ways that they did not think possible – or perhaps never considered before.
Asking young alumni and young donors to step up and give $1,000 for a leadership gift or $2,500 to reach an aspirational giving society can be daunting. But, statically, young donors want to give to causes that match their values and experiences. By leading with Give Now, Pay Later as an option, you should feel confident in your ask. "Will you give $1,000... and I want you to know we have the option to split that into four payments for you," suddenly becomes an ask that's much more realistic.