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FUTURE OF

GIVING

Culture Forecast / 2021


FUTURE OF
GIVING

Culture Forecast / 2021


FUTURE OF GIVING

Intelligence by

In collaboration with

This report is a collaboration with MFF. The cultural


shifts (and findings) identified in this report are the
result of an analysis of signals at the edges of culture,
including thousands of articles, search terms, research
papers, social listening, and quantitative studies,
conducted by sparks & honey via its cultural intelligence
system, QTM.

Culture Forecast / 2021


FUTURE OF GIVING

sparks & honey  is a technology-based cultural consultancy The Morgridge Family Foundation invests in leaders and
delivering innovative growth and transformation strategy organizations that are reimagining solutions to some of
for global organizations. With their first-of-its-kind human today’s biggest challenges. MFF offers vision, community,
and AI-powered intelligence platform, Q™,  sparks & and resources to support a network of partners achieving
honey’s comprehensive framework for understanding and their profound impact. Learn more at thinkmff.org.
predicting cultural change drives bold decision-making and
business impact for today’s  leaders.  A disruptive force to
the traditional consulting model, sparks & honey identifies
emerging cultural trends and industry shifts, helping
organizations stay ahead of the curve in a disruption-prone
world – the company is part of the Omnicom Precision
Marketing Group.
FUTURE OF GIVING

GIVING IS
EVERYONE'S BUSINESS
In the year 2021, there has never been a better time to unravel the organization’s role in society. Giving points to imagining a world that
cultural landscape of giving. As we write this, the coronavirus treats stakeholders of all kinds — everyone, from communities to
pandemic is raging throughout the world, inequalities that have long families, suppliers, and customers — as beneficiaries of shared growth.
been in the shadows are now in the limelight, our environment is In this report, we explore the seismic cultural changes that are shaping
burning, and economic chaos is causing uncertainty for people around the future of giving, where technology, changes in human behaviors,
the world. We need giving now more than ever. Giving is about and evolving consumer expectations collide with new business
preserving the resources of our collective future. models, data sets, and strategies that reconsider how we work together
to solve some of the biggest challenges out there.
Last year, 181 business leaders around the world gathered to sign the Corporations, nonprofits, individuals, leaders, and your neighbors all
“Statement on the Purpose of a Corporation” to redefine the purpose have a role to play. This very moment of crisis is daring us all to do
of a company: how it’s meant to function and who it is designed to it better.
benefit. Corporate social responsibility is no longer in a silo or
something to mark off a list, but rather, it is now fundamental to an

Copyright © 2021 sparks & honey. All rights reserved. 5


FUTURE OF GIVING

Giving is about everyone and every organization


Giving taps into a vast and diverse group of stakeholders. This giving ecosystem
spans private and public sectors, individuals, and larger institutions. 
Each plays a role within the cultural changes that bring forth the future of giving.

Brands give Individual giving


$20 billion is 2% of GDP
Represents the amount Individuals contributed
given by corporations in over $424 billion to
2018, representing 5% charities in 2018,
of charitable funding comprising almost two-
thirds of giving
Corporate Individuals
Brands

New models 20% sector


on the rise
73% of social
Hybrid KEY Charities
growth

enterprises expected
Organizations
STAKEHOLDERS  There are 1.5 million
tax-exempt
stronger YOY growth
and there are 1,800 IN THE GIVING organizations in the
certified B-corps in
over 50 countries
ECOSYSTEM U.S., and in the last 10
years the sector has
grown by 20%

Government Foundations
Institutions

Budget cuts Mega donors


impact funding increase funding

33% of nonprofit Giving by foundations


revenue is from reached $75.86 billion
government funding in 2018, representing
18% of charitable
contributions — a
Sources: Giving USA, The Urban record high
Institute, Nonprofit Pro, Deloitte

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FUTURE OF GIVING

PAG E

CONTAG ION CULT URE 11

01 EX I S T EN T I AL RI S KS
TO H U M AN IT Y
CL IM AT E C H AN G E
AI RISKS AN D POT E N T IAL
21
29

ACCE SS F OR AL L 39

02 YO U T H R IS I N G CL IC K TO ACT IVAT E
M OR E T H AN M ON E Y: G E N Z AN D M IL L E N N IAL S
46
54

M IS IN F OD E M IC 63

03 D I M IN I S H IN G
SO CI ETAL T RU S T
G R AS S ROOTS N E T WOR KS
LOSIN G M Y R E L IG ION
71
77

CE O C H AN G E AG E N TS 86

04 B RA N D AS
B EN EFACTOR
PUR POS E ME E TS POWE R
WOR KP L ACE ACT I V I S M
94
102

M OV E M E N T F OR E F F E CT IV E G IV IN G 110

05 PR EC ISI O N
F UN D I N G
S TART U P AP P E AL
DATA PHIL ANT HROPY
115
121

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FUTURE OF GIVING

CONTRIBUTING THOUGHT LEADERS


Expert interviews conducted with contributing thought leaders,
including sparks & honey Advisory Board members

Sanjay Purohit Dr. Vivienne Ming Bing Chen Rachel Botsman


Chief Curator, Societal Platform, 
 Theoretical Neuroscientist, Founder of Digital Media Entrepreneur, Investor, Trust Fellow at Oxford University’s Saïd 

EkStep Foundation, 
 Socos Labs, sparks & honey Advisory Cofounder of Gold House, 
 Business School, Author of Who Can You Trust?
sparks & honey Advisory Board Member Board Member sparks & honey Advisory Board Member

Alisa Miller Dr. Nathan Walworth Matthew Bishop


CEO & Cofounder of Pluralytics, 
 Cofounder of NEXUS Futures, Journalist, Author, Cofounder of Giving
sparks & honey Advisory Board CoVALENCE, Experience Designer Tuesday, Philanthropy Expert
Member

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FUTURE OF GIVING

METHODOLOGY
sparks & honey and the Morgridge Family Foundation started this We analyzed patterns in our data sets connected to giving and identified
research journey with a question: the shifts shaping the giving landscape. These core shifts became the basis
What are the cultural shifts impacting the future of giving, and what are of interviews with thought leaders, including sparks & honey Advisory
the critical implications and opportunities for organizations and giving Board members from the public and private sectors, who shared
institutions — now and in the future? perspectives touching on the technology, science, communications and
semantics and other aspects of the giving landscape.
To answer that question, we followed a unique methodology designed to
decode culture by bringing together the best of big data and human
expertise. Our starting point is our cultural intelligence system, QTM, We organized our findings in five chapters: Existential Risks to
which collects signals from over a million global data sources from Humanity, Youth Rising, Diminishing Societal Trust, Brand as
over 140 countries in over 50 languages, 24/7. These signals fall into Benefactor and Precision Funding. Each chapter covers three change
three categories: areas that present important opportunities for leaders to shape the future
of giving and with it, the future of organizations of all kinds.

1. What people consume (publications, video content, etc.).


2. What people say (social media, blogs, Reddit, Yelp, etc.).
3. The infrastructure of culture (academic discoveries, patents, startups
and legal decisions). QTM uses five layers of AI to source the most
energetic global signals and categorize them according to our
proprietary trend taxonomy, allowing us to quantify and predict how
those trends are growing over time.

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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
01
HUMANIT Y

01
YO U T H R I SI N G EXIS TENTIAL
02 RISKS TO
HUMA NIT Y
D IM IN I S HI N G
SO C IE TA L T RU S T

03
Giving and the preservation of humanity

BRAND AS
B E N E FAC TOR

04 CONTAG ION CULT URE


CL IM AT E C H AN G E
AI RISKS AN D POT E N T IAL
PAGE 11
PAGE 21
PAGE 29

P R E C IS I O N
F UN D I N G

05
Copyright © 2021 sparks & honey. All rights reserved. 10
FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
PRESERVING FUTURE RESOURCES
01 Humanity is undergoing a massive exercise in resilience due to  their priorities from individual needs to universal ones. From immediate
YO U T H R I SI N G existential risks that affect millions around the world. The collective risks, such as the global coronavirus pandemic, to longer-term ones of

02
experience of destructive forces — from the coronavirus pandemic to climate change and AI, where potential and risk live side by side, the
climate change and even AI — are a call to preserve our lives, livelihoods future of giving is about preserving resources for our future. In the face
and the environments we live in. These cultural shifts also resonate in of unprecedented hardship, giving not only becomes a heightened
how and why we give, leaving nonprofits, giving organizations, priority for every organization and individual — but also an expression
D IM IN I S HI N G companies and individuals alike to respond to the urgency and change of humanity.
SO C IE TA L T RU S T

03
BRAND AS
B E N E FAC TOR

04
P R E C IS I O N
F UN D I N G
1.2 People may be displaced due to
climate change by 2050

05
BILLION

Source: Institute for Economics and


Peace

Copyright © 2021 sparks & honey. All rights reserved. 11


Existential Risks To Humanity

2020 Effect: From future concern to


urgent priority
Before the outbreak of Covid-19, existential
threats like climate change, AI/workforce
automation and epidemic disease were viewed
by many as challenges to tackle in a far-off Climate alarm reached
new heights in 2020
tomorrow. The global pandemic has driven The USA’s last major recession in 2008
home our collective vulnerability to such risks, dampened Americans’ concerns about
climate change, with concern dropping

and raised awareness about the need for giving from a 2008 peak in 2009 and 2010. The
2020 recession precipitated by the
Covid-19 pandemic, however, has played
organizations and donors to come together to out differently; Americans’ alarm and sense
of urgency about climate change increased
build resilience and reduce inequality now, in 2020 to an all-time high. 54% of
Americans now identify as “alarmed” or

before the next disaster hits. “concerned” about climate change.

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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02 CONTAG ION
D IM IN I S HI N G
SO C IE TA L T RU S T CULT URE
03 The coronavirus pandemic is fundamentally
changing everything from survival to social
norms and our economy, leaving a lasting
imprint on how and why we give.
BRAND AS
B E N E FAC TOR

04
P R E C IS I O N
F UN D I N G

05
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FUTURE OF GIVING

Giving attention to universal needs - and not your own


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 NOW FUTURE
Individual actions
YO U T H R I SI N G
Focus on
empower
02 community
People are becoming increasingly ORGANIZATIONAL EFFECT
global causes
A focus on addressing universal needs
will elevate global causes that have long-
aware of the impact that individual
D IM IN I S HI N G term health implications for everyone.
SO C IE TA L T RU S T actions have on others, which is

03
changing perceptions of community
and individuality.

Band together
BRAND AS
B E N E FAC TOR to meet

04
collective needs
As the pandemic exposes flaws in the
nation’s healthcare, economic and
social structures, organizations will
P R E C IS I O N need to coordinate efforts to address
F UN D I N G

05
the needs of humanity.

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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
CONTAGIOUS GIVING
01 Pandemic increases urgency to give

YO U T H R I SI N G

02
The pandemic’s immense human cost has created increased need, an urgent need to give to alleviate highly visible and widespread
and both individual donors and organizations from nonprofits to suffering prompted by Covid-19. This has reordered donor priorities
public- and private-sector companies are stepping up to meet it. toward organizations providing crisis response, but sometimes at the
Whether giving to GoFundMe fundraisers, making direct cash cost of giving to other organizations which do equally important, but
D IM IN I S HI N G transfers to individuals or contributing to nonprofits, Americans felt less immediately urgent, work.
SO C IE TA L T RU S T

03
BRAND AS
B E N E FAC TOR

04 Raised for PPE and other medical

P R E C IS I O N
F UN D I N G

05
$8.2 MILLION
supplies for frontline responders
in GoFundMe’s third most popular
fundraiser of 2020

Source: GoFundMe 2020 Giving Report

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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
After initial dip, COVID prompts giving surge
HUMANIT Y

01 Ordinary individuals contribute to a vast portion of philanthropy in


the U.S. Every year, 100 million people make charitable gifts, with
the average household donating around $3,000. Individual giving
testament to the sense of urgency Americans felt to support those in
need during a time of crisis, as giving by individuals rose 2% in
2020, giving by bequest rose 10%, and giving by foundations rose
YO U T H R I SI N G extends beyond dollars to equally valuable efforts in volunteering, 17%. Higher net-worth givers, like those with Fidelity Donor-

02
which 77 million Americans do every year. In 2020, the coronavirus Advised Funds, also increased giving, with Fidelity reporting that its
pandemic upended both individual lives and the broader economy. DAF grants increased 24%, to a total of over $9 billion, a fact that
Despite stock market declines early in the year, widespread likely also reflects the strong stock market performance in the
economic hardship and high unemployment, which initially second half of 2020. Whether this spike in giving represents a lasting
D IM IN I S HI N G
SO C IE TA L T RU S T
depressed giving in April, May and June 2020, giving rebounded to increase in individual donor engagement or a brief moment of crisis

03
even higher heights than in calmer and more prosperous 2019. For response remains to be seen.
the first time, giving increased while GDP decreased. This is a

BRAND AS
B E N E FAC TOR

04 Increase in U.S. charitable giving

P R E C IS I O N
F UN D I N G

05
+5 % in 2020, propelled by strong giving
momentum in the second half of
the year

Source: Giving USA 2021

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FUTURE OF GIVING

In 2020, individual givers focused most on


immediate human needs
E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 Individuals reoriented their giving


The pandemic impacted donors viscerally, causing both deep stress and medical research organizations like cancer foundations, whose
and an urgent desire to help. This shifted the priorities of individual work was perceived by individual donors as in less immediate need
YO U T H R I SI N G
nonprofit donors to supporting organizations providing urgently of funding. Nonprofits in these areas face a challenge in reengaging

02
needed human services like food banks while decreasing donations to support from individual donors who may have shifted their giving
nonprofits like museums, arts organizations, educational institutions during the pandemic.

D IM IN I S HI N G Human Services 2020 Changes to Nonprofit Donations From Individuals, by Category


SO C IE TA L T RU S T Responding to Individual

03
COVID, Like Donations Shifted
Food Banks, INCREASED DECREASED From Long-Term
See Biggest GIVING GIVING Medical Research
Surge in DAF to Near-Term
Grants +12% Human Services -12% Medical Research -2% Healthcare COVID Human
BRAND AS
B E N E FAC TOR Services

04
In 2020, 25% of the 20 most
popular charities receiving gifts Faith-based Significant declines in
+3% -10% Arts and Culture -1% Animal Welfare
from Fidelity Donor-Advised donations by individuals to
Funds were new to the list. Four medical research (such as to
out of five provided Covid-19 Public and organizations performing
disaster relief, with the fifth +1% Society Benefit -7% Environment research on cancer or
P R E C IS I O N advocating for criminal justice Alzheimer’s) reflect how
F UN D I N G reform. individual givers prioritized

05
• Feeding America Source: Blackbaud Institute 2020 Giving Report -5% Education near-term COVID relief via
• Meals on Wheels human services and public
• World Central Kitchen benefit organizations over
• Samaritan’s Purse International long-term medical research
-4%
• Equal Justice Initiative Affairs during the pandemic
Source: Fidelity Charitable Report emergency.

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FUTURE OF GIVING

In a tumultuous time,
E XI S T E NT I AL
RIS K S TO
giving brings people together SIGNALS
HUMANIT Y

01
YO U T H R I SI N G

02
D IM IN I S HI N G
SO C IE TA L T RU S T

03 GIVING BACK BOOSTS GIVERS’


RECOGNITION OF COMMON
HUMANITY MOTIVATES ALTRUISM
Beyond monetary donations, many ordinary individuals gave
BRAND AS
B E N E FAC TOR
SPIRITS IN CHALLENGING TIMES groceries or medical supplies to families and medical centers

04
Motivated by the pandemic, some nonprofits successfully that were in need. A University of Washington study found
retooled both volunteering and giving programs to offer that those who did so tended to share a specific characteristic:
virtual participation options. Participants found these they felt connected to all of humanity, including others they’d
programs to be a lifeline not just for those in need but for the never met, versus just their local community. Appeals to
participants themselves, who found them mood-boosting common humanity can be powerful in giving organization
P R E C IS I O N
F UN D I N G sources of connection in a time of isolation. Post-pandemic, messaging.

05
virtual options are likely to still have appeal to certain donors
Source: University of Washington , "Helpful Behavior During Pandemic Tied to
and volunteers. Recognizing Common Humanity"
Source: CNN, "Boost your mental and physical health in the pandemic by
volunteering virtually

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FUTURE OF GIVING

It’s time to collaborate on giving, or miss out


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02 “Collaborative philanthropy as a field is emerging very rapidly, and


D IM IN I S HI N G
SO C IE TA L T RU S T the reason why is because our societies are even more stressed.

03 While philanthropy was largely dominated by the idea ‘I want to do


something that I feel deeply about,’ we’re seeing that we all need
BRAND AS
B E N E FAC TOR
to come together, join hands, and change certain aspects of the

04
society we’re living in, because things are not the same anymore.”

P R E C IS I O N
F UN D I N G — Sanjay Purohit, Chief Curator, Societal Platform, EkStep Foundation,

05
sparks & honey Advisory Board Member

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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
RESILIENT
01 RESTRUCTURING REQUIRED
YO U T H R I SI N G
2020 has created a polarized “feast or famine” set of operational donations in 2020 in the wake of the Black Lives Matter protests, and

02
challenges for giving organizations. With less than half of nonprofit struggled to both scale up their infrastructure quickly and grapple
organizations having one month of operating reserves, some with long-term planning due to uncertainty about what level of
nonprofits, like animal rights organizations, struggled as donations donor engagement could be sustained. These operational challenges
D IM IN I S HI N G to their sector shrank as givers focused on human services during directly impact the lives of  one in five Americans, who rely on the
SO C IE TA L T RU S T
the pandemic. However, some other nonprofits, in areas like human services provided by nonprofits.

03 policing reform and racial justice, saw an unprecedented flood of

BRAND AS
B E N E FAC TOR

04 In donations flooded the


Minnesota Freedom Fund after
P R E C IS I O N
F UN D I N G

05
$ 35M the murder of George Floyd,
dwarfing its previous average of
$192K/year

Source: New York Magazine, The Bail-Fund Windfall

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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
GIVING TO FUTURE-PROOF
01 With donors most moved to
YO U T H R I SI N G

give in moments of disaster,


02 nonprofits can help donors see
D IM IN I S HI N G
SO C IE TA L T RU S T

the connection between


03
BRAND AS
B E N E FAC TOR
proactively giving to build long-
04 term resiliency and the
P R E C IS I O N
F UN D I N G
amelioration, or prevention, of
05 future crises.
Copyright © 2021 sparks & honey. All rights reserved. 21
FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02
D IM IN I S HI N G
SO C IE TA L T RU S T
CL IM AT E C H AN G E

03
The shockwaves from the coronavirus pandemic highlight
other catastrophic risks. A renewed focus on the
environment is an opportunity to reframe giving for
climate change under the notion of resiliency.

BRAND AS
B E N E FAC TOR

04
P R E C IS I O N
F UN D I N G

05
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FUTURE OF GIVING

Diverse groups to be united by resiliency


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 NOW FUTURE
YO U T H R I SI N G Fragmented United by resiliency

02
beliefs
Climate change-related charitable The collective experience brought on by
efforts have been hindered by ORGANIZATIONAL EFFECT the pandemic can unite diverse groups to
competing interests in the science mobilize behind environmental causes.
D IM IN I S HI N G
SO C IE TA L T RU S T community and politically

03
polarizing views.

BRAND AS
New ways of
B E N E FAC TOR
communicating

04 Organizations will need to refine


their communications to
diminish politicized
P R E C IS I O N environmental issues and focus
F UN D I N G

05
on shared funding interests.

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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
FORCES OF RESILIENCY
01 Climate change may alienate environmental giving

The pandemic is bringing heightened awareness of human and impact of climate change is already visible. But the limited support
YO U T H R I SI N G

02
environmental vulnerability, while also raising awareness of the received for environmental causes shows that this existential threat
immense potential for humanity to make bold and impactful is underfunded. It may be time to talk about climate change
change when collective action is coordinated. Climate change is differently in order to inspire the kind of broad mobilization seen in
seen as a “major threat” to the wellbeing of life in the U.S. by 60% response to the pandemic. Successes and failures in Covid-19
D IM IN I S HI N G
SO C IE TA L T RU S T of Americans, a rise of 27% from 2009. As unprecedented wildfires communications underscore the need to avoid political

03
and weather events continue to rage and take lives, the destructive polarization and focus on community resilience.

BRAND AS
B E N E FAC TOR

04
P R E C IS I O N
F UN D I N G
93 Americans face a “severe” decline
in the quality of their environment
(more heat, less water) over the next

05
MILLION 30 years

Source: The New York Times, "How Climate Migration Will Reshape America"

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FUTURE OF GIVING

New language and possibilities for climate action


E XI S T E NT I AL
RIS K S TO SIGNALS
HUMANIT Y

01
YO U T H R I SI N G

02
D IM IN I S HI N G
SO C IE TA L T RU S T

03 PANDEMIC CREATES GREEN


RECOVERY OPPORTUNITY
UN environmental experts are seizing the moment as
BRAND AS A NEW LANGUAGE FOR industries and governments plan their pandemic
B E N E FAC TOR CLIMATE CHANGE recoveries to call for greater investments in resilient

04 Despite the climate crisis becoming more serious and more infrastructure, zero-emission technology and reforestation
obvious, Americans remain resistant to decisive and initiatives. They note a “low carbon” recovery could cut
comprehensive action. As such, leading climate scientists and 25% from projected emissions by 2030.
meteorologists are banking on a new strategy for talking Source: United Nations, "'Green Recovery' from COVID19 can slow climate
P R E C IS I O N about climate change: Take the politics out of it. change"
F UN D I N G

05
Source: Brookings Institute, "The challenging politics of climate change"

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FUTURE OF GIVING

Take the politics out of climate change


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02 “One of the things I’ve been talking about with a lot of my colleagues
D IM IN I S HI N G
SO C IE TA L T RU S T is actually moving from the narrative of climate – because there’s

03 just so much stigma and just baggage around that – and into a
narrative of resilience. Resiliency is very understandable and
BRAND AS
B E N E FAC TOR
depoliticized. And so in terms of the future of giving, as investment

04
dollars come back, what everyone will have on their mind is the
concept of resiliency.”
P R E C IS I O N
F UN D I N G

05
— Dr. Nathan Walworth, Cofounder of NEXUS Futures, CoVALENCE, experience designer

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FUTURE OF GIVING

The biggest threat to humanity remains grossly underfunded


E XI S T E NT I AL
RIS K S TO
HUMANIT Y Environmental giving has historically been a lower priority for

01
Environment & Animals Receive Lowest Donations
donors of all kinds. However, giving to environmental and
animal nonprofits did increase by 12% in 2020—the second TO INDIVIDUALS, PRIMARILY IN-KIND
ENVIRONMENT
GIFTS OF MEDICATIONS FROM PHARMA
highest increase of donations to any sector after public benefit. & ANIMALS
ARTS, CULTURE, FOUNDATIONS
This underscores how donors’ sense of vulnerability to disasters HUMANITIES
YO U T H R I SI N G
like climate change has been increased by the pandemic. Even 3%

02 with this lift, nonprofits focusing on the environment and 4%


animals received the lowest percentage of U.S. charitable INTERNATIONAL
AFFAIRS 5%
donations in 2020, at just 3%—and while gifts from non-
RELIGION
individual donors like foundations went up, gifts from
D IM IN I S HI N G
HEALTH 28%
SO C IE TA L T RU S T
individuals to environmental nonprofits were down 7% in 2020. 9%

03 Political polarization and the slower-burning nature of the crisis


has made it challenging to ignite small donors to take action.
More work is needed to bring in the level of donations necessary
10%
2020
Charitable
from all sectors to effectively address climate change. PUBLIC BENEFIT
BRAND AS
B E N E FAC TOR
Contributions

04 15%

P R E C IS I O N
F UN D I N G
12% GIFTS TO
FOUNDATIONS
12%

14%
EDUCATION

05
Annual growth in donations to environmental and
animal nonprofits, driven by non-individual
HUMAN SERVICES
donors such as foundations
Source: Giving USA 2021 Source: Giving USA, 2021

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FUTURE OF GIVING

The rise of social impact investing


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02 “There’s a huge focus on sustainability and social


D IM IN I S HI N G
SO C IE TA L T RU S T impact. This next wave of social impact investors
03 are saying: ‘I want you to sustain, but I also want
you to deliver impact to both society and my
BRAND AS
B E N E FAC TOR
returns’ — which has led to the establishment 

04 of B-corps.”
P R E C IS I O N
F UN D I N G

05
— Alisa Miller, CEO & Cofounder of Pluralytics, sparks & honey Advisory Board Member

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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
UNITING TO BUILD RESILIENCY
01
YO U T H R I SI N G
Focusing on resiliency
02 measures over politics
D IM IN I S HI N G
SO C IE TA L T RU S T unites everyone by focusing
03 on imminent adaptation, at a
BRAND AS
B E N E FAC TOR
critical moment of
04 opportunity for resilient
P R E C IS I O N
F UN D I N G

infrastructure investment.
05
Copyright © 2021 sparks & honey. All rights reserved. 29
FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02 AI RISKS AN D
D IM IN I S HI N G
SO C IE TA L T RU S T P OT E NTI AL
03 AI is under the spotlight both for its immeasurable potential to
expand innovation, but also for its capacity to expand inequities.
Marginalized communities will be disproportionately affected by
the adoption of AI, an imbalance that calls out for giving.
BRAND AS
B E N E FAC TOR

04
P R E C IS I O N
F UN D I N G

05
Copyright © 2021 sparks & honey. All rights reserved. 30
FUTURE OF GIVING

The future of AI is a civil rights issue


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 NOW FUTURE
YO U T H R I SI N G AI focused Preventing AI

02
on business inequality
The great AI debate is primarily focused With technology that accelerates faster
on business leaders and those charged ORGANIZATIONAL EFFECT than humans can keep up, the inequalities
with our technological futures, even as highlighted by AI will become ever more
D IM IN I S HI N G
SO C IE TA L T RU S T they face government officials. Notably apparent. This will require not just

03
absent is the voice of the people such business and governance leadership, but
advancements affect: everyone else. also the voice of civilians and the
organizations representing them to ensure

BRAND AS
Understanding AI that marginalized groups are not left
behind in the AI revolution.
B E N E FAC TOR
is mission-critical

04 As supporters of the
communities that will be most
adversely affected by AI,
P R E C IS I O N organizations will be confronted
F UN D I N G with AI as an ethical challenge

05
and one that requires
understanding.

Copyright © 2021 sparks & honey. All rights reserved. 31


FUTURE OF GIVING

Pandemic speeds up workforce automation


E XI S T E NT I AL
RIS K S TO SIGNALS
HUMANIT Y

01
YO U T H R I SI N G

02
D IM IN I S HI N G
SO C IE TA L T RU S T

03 RESKILLING GAINS URGENCY


With the pandemic shifting automation-induced job loss
from vague future threat to immediate reality for greater
BRAND AS
B E N E FAC TOR
SOME JOBS ELIMINATED IN THE numbers of workers, nonprofits like Merit America and for-
PANDEMIC ARE GONE FOR GOOD

04
profit entities are partnering to help Americans re-skill.
Verizon is collaborating with nonprofits Generation and
The pandemic has accelerated corporate investment into
Jobs for the Future on a $44 million initiative to provide
automating jobs in settings like warehouses and meat
free professional training in IT, coding and digital
processing plants that were major Covid-19 outbreak sites:
marketing that will enable workers to take advantage of the
P R E C IS I O N future-proofing for “the next pandemic” while cutting labor
high-skill technology jobs automation creates.
F UN D I N G costs. This is creating a more immediate need to address the

05
human impact of automation to avoid furthering social Source: Edscoop "Verizon unveils workforce re-skilling pilot with colleges"
inequalities.
Source: Government Technology, "Increased Pandemic Automation Fuels
Workforce Anxiety"

Copyright © 2021 sparks & honey. All rights reserved. 32


FUTURE OF GIVING

Human potential will escalate


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02 “Artificial intelligence is better positioned to do specialized tasks. So


D IM IN I S HI N G
SO C IE TA L T RU S T that’s why there’s automation taking all of our jobs. Because we

03 were trained as a specialized task force. Whereas what automation


can’t do yet is be ambiguous and creative. It’s really important to
BRAND AS learn the arts, the humanities and empathy. All of these human
B E N E FAC TOR

04
things are going to be huge, because we can’t train computers quite
yet to take that on.”
P R E C IS I O N
F UN D I N G

05
— Dr. Nathan Walworth, Cofounder of NEXUS Futures, CoVALENCE, experience designer

Copyright © 2021 sparks & honey. All rights reserved. 33


FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
GIVING TO
01 ADDRESS INEQUALITY
The impact of AI is not proportionately distributed across the and production, which are heavily dominated by women, will
YO U T H R I SI N G
population. It is leaving its mark most heavily on minority be hit the hardest by workforce changes brought on by AI. If

02
communities and women, who are most at risk of being interventions aren’t made, the dark side of the AI boom will fall
displaced by the effects of automation. Women are at the hardest on these populations who are already facing structural
forefront of the AI debate, making up 57% of the workforce inequalities—and deepen them further.
D IM IN I S HI N G expected to be displaced by automation, according to the World
SO C IE TA L T RU S T

03
Economic Forum. The Institute of Women’s Policy Research
estimates that employment around office work, food services

BRAND AS

29 %
14 in
B E N E FAC TOR

04 Of women work in occupations 
 Hispanic workers could be


P R E C IS I O N at high risk of automation 

F UN D I N G
displaced by AI by 2030

05
(admin, food services, production),
compared to 19% of men
Source: Institute of Women’s Policy Research,
"Why the analysis of technological change needs
a gender perspective" Source: Bloomberg, "As AI takes over jobs"

Copyright © 2021 sparks & honey. All rights reserved. 34


FUTURE OF GIVING

Solving problems the human way


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02
D IM IN I S HI N G
“AI does not magically solve problems. If you do not know how to
SO C IE TA L T RU S T
solve a problem, AI will not solve it for you. AI isn’t going to
03 magically come along and solve racial bias, it isn’t going to
somehow figure out how to address inequality. If we can’t figure it
BRAND AS
B E N E FAC TOR out, it’s not going to figure it out for us. What it can do is take an
04 existing solution and completely change the economics.”

P R E C IS I O N
F UN D I N G — Dr. Vivienne Ming, Theoretical Neuroscientist, Founder of Socos Labs, sparks & honey

05
Advisory Board Member

Copyright © 2021 sparks & honey. All rights reserved. 35


FUTURE OF GIVING

AI poses opportunities to advance human potential


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
Two Sides to the AI Story

YO U T H R I SI N G AI poses risks, but 
 Improved 31%

02
Increased

OPPORTUNITY
also opportunities productivity for
learning &
education
Of healthcare
professionals believe
people with Healthcare & AI will improve health
disabilities outcomes
clinical drug
While AI can exacerbate inequalities of disenfranchised testing
communities, the “great AI debate” also emphasizes the
D IM IN I S HI N G
SO C IE TA L T RU S T many ways AI can drive human potential, from Job
creation Human error 40%
03
advancing healthcare outcomes to new ways of learning reduction Of the repetitive
tasks teachers spend
and productivity. Whether in healthcare, education or time on could be
performed by AI
automation, AI advancements also have the power to
improve the lives of the underserved.

67%
BRAND AS
B E N E FAC TOR

04
Financial Bias-driven
Of U.S. consumers
Talent cost inequality

CHALLENGE
think the government
shortages should do more to
protect data privacy

P R E C IS I O N

25%
F UN D I N G Data Automation-

05
privacy driven job
loss Of jobs in the U.S. are
at high risk of being
automated

Sources: The Chronicle of Philanthropy, Philanthropy News Digest *Not exhaustive

Copyright © 2021 sparks & honey. All rights reserved. 36


FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
PREVENTIN G FUTURE AI INEQUALIT Y

YO U T H R I SI N G
With the pandemic
02 accelerating automation,
D IM IN I S HI N G
SO C IE TA L T RU S T philanthropies and allies face
03 greater urgency in giving
BRAND AS
B E N E FAC TOR
humans a voice in policy and
04 design decisions that protect
P R E C IS I O N
F UN D I N G

human rights in an AI world.


05
Copyright © 2021 sparks & honey. All rights reserved. 37
FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
02
HUMANIT Y

01
YO U T H R I SI N G
YOUTH
RISIN G
02 Facing aging generations of donors, the future
D IM IN I S HI N G of nonprofits will be marked by the unique
SO C IE TA L T RU S T

03
perspectives, values and economics of the
youth. Giving, meet Gen Z.

BRAND AS
B E N E FAC TOR

04 ACCE SS F OR AL L
CL IC K TO ACT IVAT E
M OR E T H AN M ON E Y: G E N Z AN D M IL L E N IAL S
PAGE 39
PAGE 46
PAGE 54

P R E C IS I O N
F UN D I N G

05
Copyright © 2021 sparks & honey. All rights reserved. 38
FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
GEN Z, FUTURE GIVERS
01 The aging of older donors is making way for a new generation of
givers, but nonprofits will need to play by a new set of rules to
uncertainty though fueled by rising income inequality, student debt
and the economic fallout of the pandemic, many are radically shifting
YO U T H R I SI N G accommodate future generations of givers in Gen Z and the way they think about wealth, privilege and legacy. For Gen Z,

02
younger Millennials.  Defined by their progressive views on a number “giving” is part of being a citizen of the world, but it’s not necessarily
of political and social issues, Gen Z is setting new standards for in old-school monetary terms.
diversity and inclusion. Their worldview is one of inclusiveness:
Gen Z has strong ties to its peers, whether online or IRL, the
D IM IN I S HI N G
SO C IE TA L T RU S T environment and causes they identify with. Facing deep economic

03
BRAND AS
B E N E FAC TOR

04
68 % Of Gen Z say the pandemic and
its aftermath has increased their
P R E C IS I O N
F UN D I N G
financial anxiety. For Millennials,

05
the number is a very similar 72%.

Source: Benefit News

Copyright © 2021 sparks & honey. All rights reserved. 39


Youth Rising

2020 Effect: Youth concerns


become the mainstream agenda

In 2020, Gen Z and Millennial advocacy


successfully shifted topics like racial justice,
climate change and wealth inequality to the Gen Z Activists Influence
center of the national consciousness. Though Older Generations on
Climate
their biggest giving years may be ahead of Gen Z climate activists are converting their
parents to viewing environmental issues
them, Gen Z and Millennials have a powerful with the same urgency that they do,
influencing how their older family

influence on giving today because their members choose to shop, travel and even
vote. Gen Z’s success at putting climate
issues at the forefront of cultural
leadership on social issues is reframing cultural conversation is just one instance of this
generation’s impact in moving issues they
conversations and thus donors’ priorities. care about from fringe concern to
mainstream priority.

Copyright © 2021 sparks & honey. All rights reserved. 40


FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02 ACCE SS F OR AL L
D IM IN I S HI N G
SO C IE TA L T RU S T

03
Leading the charge of social, racial and ethnic changes in the U.S.,
Gen Z is busting through social barriers and toppling stale notions
of identity politics, diversity and inclusion. The next generation of
givers expects nonprofits to reflect their values.

BRAND AS
B E N E FAC TOR

04
P R E C IS I O N
F UN D I N G

05
Copyright © 2021 sparks & honey. All rights reserved. 41
FUTURE OF GIVING

Gen Z demands more diverse


E XI S T E NT I AL
RIS K S TO
HUMANIT Y
representation in funding, research

01 NOW FUTURE
YO U T H R I SI N G
Values fueled by Gen Z expectations

02 inclusivity
Gen Z’s progressive ideology leans
on inclusivity as a core value.
NONPROFIT EFFECT
in giving
As they age and grow in influence, Gen
Z’s values will be reflected in prioritizing
D IM IN I S HI N G
SO C IE TA L T RU S T more diverse representation in research

03
and in funding.

Reflect
BRAND AS
B E N E FAC TOR
Gen Z values

04 Organizations will emphasize Gen


Z values in their giving, showing a
greater commitment to inclusive
teams, programs and thinking
P R E C IS I O N
F UN D I N G through their operations and

05
funding models.

Copyright © 2021 sparks & honey. All rights reserved. 42


FUTURE OF GIVING

E XI S T E NT I AL RISE TO GEN Z’S


EXPECTATIONS
RIS K S TO
HUMANIT Y

01 Maturing into adulthood, Gen Z is less about labels and more about
showing up in the world according to its values. The most diverse
sense driven both by the inequalities of daily life and major cultural
events like the Black Lives Matter movement. Diversity is then
YO U T H R I SI N G demographic in history, Gen Z views diversity as a pillar of good for integral to who they are and core to their worldview. To meet Gen Z

02
society. From showing up to protest racial inequities to battling gun where they are, organizations will need to rise to Gen Z’s
control and climate change, Gen Z values are unraveling the past expectations when it comes to living and breathing their intended
and charging ahead. For Gen Z, there is no “other,” only “us” — a purpose.

D IM IN I S HI N G
SO C IE TA L T RU S T

03 48 36 62 50
% Are from % Say their gender % See diversity as % Do not label themselves
communities of color identity is fluid good for society as liberal or conservative

THE MOST DIVERSE


BRAND AS
B E N E FAC TOR GENERATION IN HISTORY

04 White
52% Of Gen Z say being

73 % politically or socially
Hispanic 25%
engaged is very
P R E C IS I O N
F UN D I N G Black 14% important to their

05 Asian

Other
6%

4%
Source: Irregular Labs
identity

Source: Irregular Labs, Business Insider, WeSpire


Copyright © 2021 sparks & honey. All rights reserved. 43
FUTURE OF GIVING

Gen Z will call you out


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02
D IM IN I S HI N G
SO C IE TA L T RU S T
“There’s a dissatisfaction with organizations that don’t

03
walk the talk. That is a perception, because there is an
absence of really good data and evidence on
BRAND AS
B E N E FAC TOR performance. But a lot of organizations that exist
04 already will not be chosen by Millennials or Gen Z.”
P R E C IS I O N
F UN D I N G

05
— Matthew Bishop, Journalist, Author, Cofounder of Giving Tuesday, Philanthropy Expert

Copyright © 2021 sparks & honey. All rights reserved. 44


FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
FALLING OUT OF TOUCH
01 Traditional giving institutions need to wake up

YO U T H R I SI N G
Gen Z has a deep-seated notion of social consciousness, but it’s one and some feel traditional giving institutions move too slowly, or fail

02
that is often at odds with current charitable organizations. Even to address the root causes of the issues Gen Z cares about. Social
though they are keen to implement social change, only 10 % of Gen Z enterprises can be perceived as more agile and responsive and
say they would like to set up a charity in the future. This disconnect investing in community-oriented businesses such as food co-ops,
D IM IN I S HI N G
highlights the difference in how modern social enterprise is perceived through organizations like Boston’s Ujima Project, can hold appeal to
SO C IE TA L T RU S T by the youth against the fabric of traditional giving institutions. Gen Z young donors eager to fund long-term structural change.

03
has a strong sense of urgency around the issues they want to tackle,

BRAND AS
B E N E FAC TOR

04
26 % Of Gen Zers say they are
P R E C IS I O N dissatisfied with traditional
F UN D I N G
charitable donations

05 Source: Give.org, "Donor Trust Report 2020"

Copyright © 2021 sparks & honey. All rights reserved. 45


FUTURE OF GIVING

Social enterprise > charity


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02
D IM IN I S HI N G
“I have 100 students at the moment and I asked, how many of you
SO C IE TA L T RU S T
would want to work for a charity? And maybe three would put their
03 hands up. How many want to work for a social enterprise? Most of
the class puts their hand up. How many of you want to go work for
BRAND AS
B E N E FAC TOR McKinsey? A few put their hands up. That’s why they’re at
04 business school, which I think is fascinating.”

P R E C IS I O N
F UN D I N G

05
— Rachel Botsman, Trust Fellow at Oxford University’s Saïd Business School, Author of Who Can You Trust?

Copyright © 2021 sparks & honey. All rights reserved. 46


FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 E V O LV E O R B E L E F T B E H I N D

YO U T H R I SI N G
Gen Z and Millennials are
02 setting new standards for
diversity, inclusion and more. 

D IM IN I S HI N G
SO C IE TA L T RU S T

03 Is your organization’s giving


BRAND AS

DNA ready for the change


B E N E FAC TOR

04 these young people now


P R E C IS I O N
F UN D I N G

05 demand?
Copyright © 2021 sparks & honey. All rights reserved. 47
FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02 CL IC K TO
D IM IN I S HI N G
SO C IE TA L T RU S T
ACT IVAT E
03 Gen Z are known for their social activism
online, but many aspire to make lasting
changes in the real world, too.
BRAND AS
B E N E FAC TOR

04
P R E C IS I O N
F UN D I N G

05
Copyright © 2021 sparks & honey. All rights reserved. 48
FUTURE OF GIVING

Create virtual engagement as a lifeline for future givers


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 NOW FUTURE
YO U T H R I SI N G Virtual community-
The numbers talk building
02 A focus on finances, short-term
impact with giving dollars is
creating a disconnect with younger
ORGANIZATIONAL EFFECT
The pandemic has made building
community and engagement online an
even more urgent lifeline for reaching
D IM IN I S HI N G
SO C IE TA L T RU S T audiences, who value experiences Gen Z and youth audiences.

03
over the bottom line.

Reskilling
BRAND AS
B E N E FAC TOR
required

04
Organizations will need to
acquire the skills and talent
needed for digital engagement
and experience design as more
P R E C IS I O N
F UN D I N G fundraising and community-

05
building activities are moved
to the digital world.

Copyright © 2021 sparks & honey. All rights reserved. 49


FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
GET DIGITAL
01 Gen Z online activism demands giving get digital-savvy, fast

Gen Z’s sense of identity is entwined with social and political support stops them from taking further action. Activism is
YO U T H R I SI N G
issues, even when they may get a hard time for all the hours thriving online (accelerated notably by the pandemic), but

02 they spend online. 73% of Gen Z youth say being politically


and socially active is part of their identity. Such deeply
personal fervor for activism can stall online too. Over half, or
giving organizations often lack a presence there — and they’re
missing out on engaging with Gen Z because of it.

D IM IN I S HI N G 55%, say not knowing who to contact or what groups to


SO C IE TA L T RU S T

03
BRAND AS ACTIVISM STARTS ONLINE
B E N E FAC TOR

04
63 % Of Gen Z primarily turn to social
P R E C IS I O N media channels for social and
F UN D I N G

05
political issues

Source: Irregular Labs

Copyright © 2021 sparks & honey. All rights reserved. 50


FUTURE OF GIVING

Giving redesigned for a changed world


E XI S T E NT I AL
RIS K S TO SIGNALS
HUMANIT Y

01
YO U T H R I SI N G

02
D IM IN I S HI N G
SO C IE TA L T RU S T

03 CHARITIES’ SHIFT TO ONLINE


DONATION IN 2020 POSITIONS
THEM CLOSER TO GEN Z
BRAND AS GOFUNDME POPULARIZES DIGITAL Peer-to-peer fundraisers, such as biking, walking or running
B E N E FAC TOR
FUNDRAISING AND SPARKS

04
for a charity, collectively raise billions for nonprofits. The
CONTROVERSY coronavirus pandemic has left nonprofits scrambling to
No company has played a bigger role in digitizing giving than transform formerly in-person events into virtual ones. The
GoFundMe. That said, questions about how GoFundMe shift here may have been a strategic way to manage a crisis,
papers over broader social and governmental woes and even but it also brings many traditional institutions closer to the
P R E C IS I O N spaces where Gen Z congregates and finds meaning.
F UN D I N G controversies about Kylie Jenner’s use of the site suggests

05
remaining unease with the platform most primed for Gen Z Source: Forbes, "How Nonprofits Are Pivoting To Virtual Fundraising In The Face
giving. of Covid-19"

Source: Washington Post "Struggling to Stay Afloat in the Pandemic, People Turn
to Strangers Online for Help." Yahoo “Twitter Is Roasting Kylie Jenner For Asking
Fans to Donate to Her Makeup Artist.”

Copyright © 2021 sparks & honey. All rights reserved. 51


FUTURE OF GIVING

Gen Z craves meaning with giving


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02 “Charity doesn’t feel good most of the time. You make a donation
D IM IN I S HI N G
SO C IE TA L T RU S T and feel good for maybe 10 minutes and think, well, I didn’t really

03 solve the problem. That’s why I think charity and philanthropy are
struggling with younger generations, because they do want that
BRAND AS
B E N E FAC TOR
deep sense of engagement and connection. They’re not settling for

04
writing a yearly check. In a way, they’re holding themselves to
higher standards.”
P R E C IS I O N
F UN D I N G

05
— Rachel Botsman, Trust Fellow at Oxford University’s Saïd Business School, Author of Who Can You Trust?

Copyright © 2021 sparks & honey. All rights reserved. 52


FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
EXPERIENCE DESIGN
01 MATTERS
YO U T H R I SI N G

02
Born toggling devices, Gen Zers are digital natives who will respond need, forcing many peer-to-peer fundraisers to refashion former in-
to experience design. To reach them, nonprofits will need to look to person events into virtual programs. Giving organizations will need
creative engagement strategies that help build both communities to address any skills gaps that stand in the way of being truly
and fundraising efforts. The pandemic has only highlighted this present online.
D IM IN I S HI N G
SO C IE TA L T RU S T

03
BRAND AS
B E N E FAC TOR

04 Of Gen Z say brands should

P R E C IS I O N
F UN D I N G

05
62 % help connect them to resources
that will help their social/
political goals

Source: Irregular Labs

Copyright © 2021 sparks & honey. All rights reserved. 53


FUTURE OF GIVING

Empower your givers to feel like activists


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02 “In terms of crowd-driven campaigns, community engagement, and


D IM IN I S HI N G full-on mobilized movement, it's key for charities to map out really
SO C IE TA L T RU S T

03
where they are comfortable on that scale. Are we really talking about
money and micro-donations, or are we talking about people feeling
like they are ambassadors and activists and that they have every
BRAND AS
B E N E FAC TOR right to represent this charity? Our role as a charity now is

04 completely ‘bottom up’ to empower them — it’s a huge spectrum of


choice.”
P R E C IS I O N
F UN D I N G

05
— Dr. Nathan Walworth, Cofounder of NEXUS Futures, CoVALENCE, Experience Designer

Copyright © 2021 sparks & honey. All rights reserved. 54


FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
VIRTUAL GIVIN G IS ESSENTIAL
01
YO U T H R I SI N G

Philanthropies must invest in


02 reskilling talent to bring giving
D IM IN I S HI N G
SO C IE TA L T RU S T

into the digital era, and for-


03
BRAND AS
B E N E FAC TOR
profits must consider new ways
04 to embed virtual giving into
P R E C IS I O N
F UN D I N G
their core business.
05
Copyright © 2021 sparks & honey. All rights reserved. 55
FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02 MORE THAN MONEY:


GEN Z AND MILLENNIALS
D IM IN I S HI N G
SO C IE TA L T RU S T

03 Wealth inequality, a pandemic and economic uncertainty are


realities for many. But wealth is taking on meaning beyond
monetary terms, and changing perceptions of giving.
BRAND AS
B E N E FAC TOR

04
P R E C IS I O N
F UN D I N G

05
Copyright © 2021 sparks & honey. All rights reserved. 56
FUTURE OF GIVING

Youth values inspire new models of giving


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 NOW FUTURE
YO U T H R I SI N G
Giving dollars More meaning

02 Emphasizing monetary giving can


only alienate some future givers,
who are values-based.
ORGANIZATIONAL EFFECT
The effects of giving will resonate beyond
monetary terms, with value measured in
terms of life experiences, time spent on
D IM IN I S HI N G
SO C IE TA L T RU S T purpose and playing a part in change.

03 Emphasize
BRAND AS
B E N E FAC TOR
new values

04 Organizations will need to


consider that future givers face
growing wealth inequalities, but
P R E C IS I O N
also a more holistic view on life.
F UN D I N G

05
Copyright © 2021 sparks & honey. All rights reserved. 57
FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
FINDING NEW
01 MEANING IN WEALTH
The desire for social and personal wellbeing are impacting perceptions of giving
YO U T H R I SI N G

02
Younger generations, Gen Z and Millennials, are realizing that notions in her book, Holistic Wealth. It’s a reset that giving organizations are
of wealth reach far beyond the traditional ideals of assets and net asked to wake up to, too. Millennials and Gen Z have grown up in an
worth. Money is one thing, but there is also value in a holistic era of deep economic inequality, in which once-in-a-generation
worldview. “At a basic level, holistic wealth emphasizes wealth in key emergencies seem to happen every decade. To connect with these
D IM IN I S HI N G aspects of life, including financial wealth, physical health, emotional activist generations, giving organizations must convince them that
SO C IE TA L T RU S T

03
and spiritual wealth; and wealth in our relationships with others, as charitable giving can help fight against inequity and support the
well as in our contributions to humanity,” author Keisha Blair details givers’ own sense of wellbeing in a troubled time.

BRAND AS
B E N E FAC TOR

04 One third of young people report

P R E C IS I O N
F UN D I N G

05
1/3 the desire to leave their jobs for
more meaningful work - a major
uptick since the pandemic.

Source: "Forbes"

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FUTURE OF GIVING

Rising wealth inequality


E XI S T E NT I AL
RIS K S TO affects future giving
HUMANIT Y SIGNALS

01
YO U T H R I SI N G

02
D IM IN I S HI N G
SO C IE TA L T RU S T

03 YOUTH LOOK TO GRASSROOTS


SOME WELL OFF YOUNG PEOPLE
STILL DON’T FEEL FLUSH ENOUGH
BRAND AS
TO GIVE
B E N E FAC TOR ORGANIZATIONS TO COMBAT

04
The term “HENRYs” is an acronym for “high earner not rich
WEALTH INEQUALITY yet,” which was created to describe a growing swath of
Though millennials’ share of national household wealth Millennials who earn six-figure paychecks, but don’t feel
remains below 20%, the pending generational wealth transfer financially secure enough to give large amounts to charity.
will benefit some millennials enormously. Some wealthy Economic unease, the uncertainty of the pandemic and
P R E C IS I O N millennials are looking to grassroots organizations like burdens like student loan debt weigh down well-off
F UN D I N G

05
Resource Generation to tackle income inequality which was Millennials’ sense that they now have a duty to give.
only made worse by the pandemic. Source: Business Insider, "Here's Why So Many Millennials Making 6-Figures
Still Feel Broke"
Source: The Washington Post, "The Millennials Who Want to Get Rid of Their
Class Privilege"

Copyright © 2021 sparks & honey. All rights reserved. 59


FUTURE OF GIVING

Wealth for some youth, but not for most


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02
D IM IN I S HI N G
SO C IE TA L T RU S T
“What is going to happen is intergenerational wealth

03
transfer. Those Boomers are going to be giving money
to their children – and that is billions and trillions. 

BRAND AS
B E N E FAC TOR But when we look at the younger generations, the
04 wealth will not be evenly dispersed overall.”
P R E C IS I O N
F UN D I N G

05
— Alisa Miller, CEO & Cofounder of Pluralytics, sparks & honey Advisory Board Member

Copyright © 2021 sparks & honey. All rights reserved. 60


FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
INTERGENERATIONAL WEALTH
01 TRANSFERS CREATE IMBALANCE
YO U T H R I SI N G

02
The wealth gap between those with money and those without is financial gain that would increase their wealth five times over. Such
ever-widening. While Gen Z and Millennials are bearing the brunt of a transfer of intergenerational wealth highlights a growing income
economic uncertainties, particularly in the midst of a pandemic that gap and the inequality it brews, creating greater imbalance among
has seen the U.S. GDP decline by 3.5% in 2020, a cohort of young young people in the future. Organizations focused on giving will
D IM IN I S HI N G people have a far rosier future. By 2030, Millennials are expected to need to understand the vast disparities the wealth gap can induce.
SO C IE TA L T RU S T

03
inherit $68 trillion from their parents and older generations, in a

BRAND AS
B E N E FAC TOR

04
P R E C IS I O N
F UN D I N G

05
56 % Of Millennial millionaires donate
to charities

Source: Coldwell Banker, “A Look at Wealth 2019”

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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 GIVING FOR LASTING CHANGE

YO U T H R I SI N G

Future generations are


02 increasingly focused on
D IM IN I S HI N G
SO C IE TA L T RU S T

solving what they view as


03
BRAND AS
B E N E FAC TOR
the root causes of social
04 issues, such as wealth
P R E C IS I O N
F UN D I N G
inequality.
05
Copyright © 2021 sparks & honey. All rights reserved. 62
FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
03
HUMANIT Y

01 Gaining trust in a trust-free world

YO U T H R I SI N G
DIMINISHIN G
SOCIETAL TRUS T
02 Trust in everything from government to
D IM IN I S HI N G institutions, brands and even individuals is in
SO C IE TA L T RU S T

03
steep decline. Organizations will need to prove
their trust chops to reach future generations.

BRAND AS
B E N E FAC TOR

04 M IS IN F OD E M IC
G R AS S ROOTS N E T WOR KS
LOSIN G M Y R E L IG ION
PAGE 63
PAGE 71
PAGE 7 7

P R E C IS I O N
F UN D I N G

05
Copyright © 2021 sparks & honey. All rights reserved. 63
FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO GIVING TO SHOW MORE TANGIBLE
VALUE AMID GROWING DISTRUST
HUMANIT Y

01
YO U T H R I SI N G
Giving institutions are dealing with a broad shift in the decline of cannot put a price on: trust. The absence of trust in longstanding,

02
trust. The societal decline in trust was already steep before the traditional institutions has surfaced new pillars, values and networks
pandemic hit, with 64% of Americans saying they lack trust in specific of giving, which we will explore here within
individuals and government. The pandemic highlighted inequities the three major cultural shifts: Misinfodemic, Grassroots Networks
and systemic flaws, set against a downward spiral in trust against the and Declining Religion. Giving institutions will have to exercise true
D IM IN I S HI N G very institutions that were set up to protect us and often have failed. value and trust-building efforts, particularly as they seek out
SO C IE TA L T RU S T

03
The act of giving now includes a necessary component that you younger generations.

BRAND AS
B E N E FAC TOR

04
OVER
Average amount brought in
P R E C IS I O N
F UN D I N G

05
$
15 from just one social share of a
micro-donation

Source: Philanthropy Journal

Copyright © 2021 sparks & honey. All rights reserved. 64


Diminishing Social Trust

2020 Effect: From generalized


mistrust to a new faith in community

Mistrust towards government, media, business


and even charities has riven American society
in recent years. While mistrust remains high, for Future roadmap for
collective care
many, 2020 reawakened a belief in the power Some public health experts argue that the
pandemic illuminates a route forward
of community—whether grassroots aid groups toward a more resilient society: collective
care networks like the scrappy mutual aid
or giving circles— as people banded together to groups and agile inter-charity partnerships
that united different community

help one another in the face of the pandemic stakeholders like faith groups, NGOs and
volunteers in common purpose. They
argue the cross-sector Covid-19 relief
and sociopolitical storms. infrastructure developed in 2020 should be
maintained to build stronger communities

Copyright © 2021 sparks & honey. All rights reserved. 65


FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02 M IS IN F OD E M IC
D IM IN I S HI N G
SO C IE TA L T RU S T

03
The raging effects of polarization are forcing organizations to
establish a greater sense of trust with both the public and donors.
The onus is on organizations to provide more proof of the their
trustworthiness and openness.

BRAND AS
B E N E FAC TOR

04
P R E C IS I O N
F UN D I N G

05
Copyright © 2021 sparks & honey. All rights reserved. 66
FUTURE OF GIVING

Devote time, energy to the core cause


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 NOW FUTURE
YO U T H R I SI N G Getting comfortable Giving goes deeper,

02
with financial not wider
transparency
ORGANIZATIONAL EFFECT Giving organizations will become
Organizations are becoming more open hyper-focused on their reason for being,
D IM IN I S HI N G about their financials and where and
SO C IE TA L T RU S T devoting their energy to core causes

03
how their money is being spent. have become more acute during this
moment of major social disruption.

Coping with
BRAND AS misinformation
B E N E FAC TOR

04
Misinformation blended with real
information is making it difficult to
tell which organizations are driving
the most impact with efficiency.
P R E C IS I O N
F UN D I N G Giving organizations will have to

05
build muscle to instill trust
and transparency.

Copyright © 2021 sparks & honey. All rights reserved. 67


FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
DISTRUST IS AT AN
01 ALL -TIME HIGH
YO U T H R I SI N G
Being open and transparent amid a plague of misinformation

02 Trust in the competency and ethical judgment of organizations has


been crumbling, even before the pandemic. Now, disinformation, fake
news and public manipulation are fueling not only political
organizations, to help people decipher the fake from the real. Against
this backdrop, giving organizations are also under scrutiny to prove
their trustworthiness. People are rejecting secrets in favor of
D IM IN I S HI N G
SO C IE TA L T RU S T polarization, but also adding anxiety to the shared understanding of transparency, and challenging organizations and causes to be more

03
reality, when knowledge can potentially make the difference between forthcoming about their intentions before a dollar is donated.
safety and death. New tools are surfacing, such as digital literacy

BRAND AS
ONLY

19 %
B E N E FAC TOR

04
Of individuals say they
highly trust charities

P R E C IS I O N BUT
F UN D I N G

05 64 % Rate trust in a charity as


essential before giving
Source: “Give Org. Donor Trust Report 2020

Copyright © 2021 sparks & honey. All rights reserved. 68


FUTURE OF GIVING

Tech leveraged for transparency and trust


E XI S T E NT I AL SIGNALS
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02
D IM IN I S HI N G
SO C IE TA L T RU S T

03 CRYPTO AIMS TO DO GOOD ANTI-PHISHING AND ANTI-SCAM


TRANSPARENTLY TECHNOLOGY TO AID NONPROFITS
Bolster, a startup that monitors counterfeit and phishing sites,
Various cryptocurrency initiatives ranging from charity coins
launched Bolster for Good to help nonprofits that are
BRAND AS like $Change, which livestreams its donations for
B E N E FAC TOR
struggling with misinformation attacks. The service arms
accountability, to Ethereum founder Vitalik Buterin’s

04
nonprofits with technology to counter phishing and scam
quadratic funding collaboration with GitCoin, aim to
attacks, which have skyrocketed in the pandemic. In 2020,
convince the new generation of tech and finance workers to
phishing and counterfeit websites contributed to $3.3 billion
donate by elevating the transparency they value. By using a
lost to fraud, according to the FTC.  These tech solutions will
math equation to objectively allocate matching charity dollars
become even more important in buttressing insitutional trust
P R E C IS I O N proportionate to the number of overall contributors, not just
F UN D I N G
as cyber-crimes are predicted to increase.
dollars raised, quadratic funding aims to give small donors a

05
greater voice in giving. Over $2 million has been distributed Source: BusinessWire, "RedMarlin Rebrands to Bolster, Launches New Program"
via cryptocurrency quadratic funding projects.

Source: Finematics, “How Can $1 Turn into $27? Quadratic


Funding Explained”

Copyright © 2021 sparks & honey. All rights reserved. 69


FUTURE OF GIVING

People are overwhelmed with misinformation


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 The Truth Is Hard To Find: Rise in Fake News, 2016-2020

DISINFORMATION OR FAKE NEWS OR MISINFORMATION

YO U T H R I SI N G

02 1,500

D IM IN I S HI N G
NEWS COVERAGE

SO C IE TA L T RU S T

03
1,000

The rise in fake news is making


BRAND AS
B E N E FAC TOR
500 true information more difficult
to find than ever

04 0
P R E C IS I O N 2016 2017 2018 2019 2020
F UN D I N G

05
YEAR

Source: CB Insights, 2020

Copyright © 2021 sparks & honey. All rights reserved. 70


FUTURE OF GIVING

A crisis of trust in one institution can damage them all


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02 “Foundations tend to think that incidents of fractured trust are


D IM IN I S HI N G
SO C IE TA L T RU S T contained within charities of similar nature, but the public doesn’t

03 make the delineation, even between a family foundation and a large


charity. It just sees it as a charitable sector. We cannot
BRAND AS underestimate the damage that is done when there is a crisis of
B E N E FAC TOR

04
trust in a mainstream charity and the questions that follow of where
is my money going.”
P R E C IS I O N
F UN D I N G

05
— Rachel Botsman, Trust Fellow at Oxford University’s Saïd Business School, Author of Who Can You Trust?

Copyright © 2021 sparks & honey. All rights reserved. 71


FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
RISING GENERATIONS HAVE
01 DIFFERENT TRUST METRICS
YO U T H R I SI N G
Gen Z trust skews toward impact and emotional connection

02 The public expectation on nonprofit organizations, particularly


those that receive their time and money, demand that
are less meaningful to them. Overall, only 50% of Gen Z rank
trust in a charity before giving as essential, compared to 80% of
nonprofits be open and transparent about their operations. older demographics. This signals a more spontaneous and
D IM IN I S HI N G
SO C IE TA L T RU S T However, Gen Z has different ideas about trust and giving emotional approach to donating by Gen Z, catalyzed by the

03 than older generations. Organizations’ accomplishments are


their #1 factor in evaluating trust in a nonprofit, and “passion
and sincerity of the appeal” ranks more highly for them than
intertwining of social media and giving. Giving organizations
can benefit from tailoring their trust strategies to match these
different generational priorities.
BRAND AS older generations. Third-party evaluations and financial ratios
B E N E FAC TOR

04 Name
Recognition
MATURES

44%
Name
Recognition
GEN Z

27%
P R E C IS I O N
F UN D I N G Third-party Third-party
40% 28%

05
Evaluation Evaluation
Accomplishments shared Accomplishments shared
37% 28%
by the organization by the organization

Source: “Give Org. Donor Trust Report 2020

Copyright © 2021 sparks & honey. All rights reserved. 72


FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 TA RG E T E D T RU S T S T R AT E G I E S

YO U T H R I SI N G
Winning donor trust means
02 tailoring strategies to
specific audiences.
D IM IN I S HI N G
SO C IE TA L T RU S T

03 Technology, passionate
BRAND AS

purpose and transparent


B E N E FAC TOR

04 metrics can all be powerful


P R E C IS I O N
F UN D I N G

05 tools to fight distrust.


Copyright © 2021 sparks & honey. All rights reserved. 73
FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02 G R AS S ROOTS
D IM IN I S HI N G
SO C IE TA L T RU S T
N E T WOR KS
03 In the absence of governmental action, people are
turning to bottom-up change, bringing issues and
causes into the limelight from beyond the shadows.
BRAND AS
B E N E FAC TOR

04
P R E C IS I O N
F UN D I N G

05
Copyright © 2021 sparks & honey. All rights reserved. 74
FUTURE OF GIVING

Inspiring smaller donors and communities


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 NOW FUTURE
YO U T H R I SI N G
Reliance on The voice of the

02 big donors
Giving organizations have stuck to
the traditional top-down model of
ORGANIZATIONAL EFFECT
people counts
Instead of relying on big donors,
organizations will move to inspire more
D IM IN I S HI N G giving, relying on big donors, which communities, and fuel donations from
SO C IE TA L T RU S T

03
they end up competing for in an individuals that reverberate with the
ever-dwindling pool. power of the collective.

Donors big
BRAND AS and small
B E N E FAC TOR

04
Nonprofits are beginning to realize
that they do not need to choose
between engaging mega-donors or
crowdfunding. Instead, they can help
P R E C IS I O N communities invest in themselves,
F UN D I N G

05
and then seek larger support.

Copyright © 2021 sparks & honey. All rights reserved. 75


FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
MICRO-DONORS TO THE RESCUE
01 Small communities and individuals making a big difference

YO U T H R I SI N G The bigger the pool of individuals donating, the better served the new designs for micro-donations, such as TikTok or Instagram adding

02
beneficiaries are. Nonprofits that rely on big-donor donations, donation “click-to-donate” buttons. Research on micro-donations revealed that
size notwithstanding, end up competing for the same donor pool. The one out of every five certified charity donors shared a campaign
result is stiffer competition and a smaller amount for the intended following their donation, and more than half of a campaign’s donation
beneficiaries. But issues that affect so many cannot be solved by big volume is received as a direct result of social sharing from donor and
D IM IN I S HI N G donors alone. Micro-funding, a large pool of people donating, has vast visitor shares. Micro-donations end up building community and
SO C IE TA L T RU S T

03
reach beyond dollar amounts. The pandemic has seen a swift rise in engagement with the people who give, who collectively are a force. 

BRAND AS
B E N E FAC TOR

04 Growth in gifts <$250 in 2020; a

+15
% higher rate of growth than for
P R E C IS I O N
F UN D I N G gifts $250-$1000 or gifts >$1000

05 Source: Fundraising Effectiveness Project

Copyright © 2021 sparks & honey. All rights reserved. 76


FUTURE OF GIVING

Big, challenging moments motivate


E XI S T E NT I AL
RIS K S TO
small donors SIGNALS
HUMANIT Y

01
YO U T H R I SI N G

02
D IM IN I S HI N G
SO C IE TA L T RU S T

03 SMALL-SCALE DONORS GAVE FROM


STIMULUS CHECKS
Despite widespread economic hardship, significant numbers
BRAND AS
B E N E FAC TOR
MUTUAL AID MAINSTREAMS of households donated all or part of their stimulus checks to

04
While not a new concept, 2020 was the year mutual aid began nonprofits or individuals in need, with the U.S. Census
to mainstream. In contrast to some traditional charity Bureau estimating that 11-13 million Americans did so. This
organizations, mutual aid organizations are typically run by 26% increase among donors of more modest means points to a
the recipients of their services, and place a strong emphasis on powerful belief among Americans that giving—when
working to address both immediate material needs and their economically possible— is a valuable behavior.
P R E C IS I O N
F UN D I N G roots in long-standing racial and social inequities. Funding is

05
Source: MarketWatch, "This is how many Americans gave away their stimulus
usually obtained via small donations solicited from within the check money"
community and through social media.
Source: The New Yorker, “What Mutual Aid Can Do During a Pandemic"

Copyright © 2021 sparks & honey. All rights reserved. 77


FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
ACTIVISM MEETS PHILANTHROPY,
01 INSPIRING COMMUNITY
YO U T H R I SI N G

02
Grassroots activism has given new life to once neglected, non- more modest donations individually, together they make a large impact
traditional and underrepresented causes that have been shifted to the and also inspire activism on a local level with the communities they
side or deemed too risky in the past to fund. Giving circles are made up reflect, many of which are often underserved. With support and
of hyper-local groups — such as Black Benefactors or Asian Women guidance from philanthropic networks like Impact100 that help get new
D IM IN I S HI N G
SO C IE TA L T RU S T Giving Circle — of people who pool their resources for giving circles off the ground, giving circles are rapidly scaling up across the

03
purposes, collectively deciding what they choose to fund. By making country.

BRAND AS
B E N E FAC TOR

04 Growth in giving circles, hyper-

P R E C IS I O N
F UN D I N G 225 % local groups of people pooling
resources for giving, from 2006
to 2017

05 Source: The Washington Post

Copyright © 2021 sparks & honey. All rights reserved. 78


FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 SMALL DOLLARS, BIG CHANGES

YO U T H R I SI N G

Build on recent micro-donation


02 momentum by honoring the big
D IM IN I S HI N G
SO C IE TA L T RU S T

aggregate impact of small


03
BRAND AS
B E N E FAC TOR
donations, and uplift the value
04 non-monetary contributions
P R E C IS I O N
F UN D I N G
like social sharing can have.
05
Copyright © 2021 sparks & honey. All rights reserved. 79
FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02 LOSIN G M Y
D IM IN I S HI N G
SO C IE TA L T RU S T R E L I G I ON
03 Organized religion is on the decline in the U.S., and
beliefs centered on spiritualism and values are on the rise.
Given that the church was the steeple of institutional
giving, the future of giving is finding a new home.
BRAND AS
B E N E FAC TOR

04
P R E C IS I O N
F UN D I N G

05
Copyright © 2021 sparks & honey. All rights reserved. 80
FUTURE OF GIVING

Spiritualism, values open up new avenues for giving


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 NOW FUTURE
YO U T H R I SI N G
Religion-based Values-based giving

02
giving communities
The tradition of giving is deeply ORGANIZATIONAL EFFECT For some, giving organizations are where
rooted in religious institutions,
they find values-based community—with
D IM IN I S HI N G but it’s on the decline.
SO C IE TA L T RU S T or without a faith context.

03
BRAND AS Divide in religion-
B E N E FAC TOR
based giving
04 Organizations focused on
religion will see some people
give even more to churches,
P R E C IS I O N
F UN D I N G while others will view

05
organized religious association
as a barrier to giving.

Copyright © 2021 sparks & honey. All rights reserved. 81


FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
FAITH-LESS SHIFT GIVING
01 Giving organizations as a new values-centered home for the skeptical

Americans have been losing faith in their faith. As a longstanding Z (45%) say they “rarely or never” attend church, with similar
YO U T H R I SI N G
pillar for many, religion has followed in the footsteps of decline in patterns found among their older Millennial peers. While this

02 institutional trust.  However, in 2020, Americans’ confidence in


organized religion rose for the first time since 2013, with three out of
ten Americans saying the pandemic had strengthened their faith. In
wavering faith has many legs, it is also giving new shape to giving,
as younger generations especially look for new ways to honor their
ethics and their faith, outside of traditional religious channels like
D IM IN I S HI N G a time of crisis, faith organizations like Samaritan’s Purse were tithing. For some, giving organizations can be their “new church”: a
SO C IE TA L T RU S T

03
highly visible providers of Covid-19 relief, signaling an opportunity source of community and grounding in ethics and moral principles.
for religious nonprofits to reengage donors. Still, almost half of Gen

BRAND AS
IN 1975
Of Americans had a great deal or quite

68 %
B E N E FAC TOR

04
a lot of confidence in the church or
organized religion

P R E C IS I O N IN 2020

42
F UN D I N G
% Had confidence

05 in organized
religion
Source: Gallup, "Confidence in Institutions"

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FUTURE OF GIVING

Religious orgs still receive largest percentage of U.S. charity


E XI S T E NT I AL
RIS K S TO
dollars, but their share is steadily declining
HUMANIT Y

01
Charitable Donations to Religious Institutions

% OF C HARITABLE DONATIONS TO RELIGION

YO U T H R I SI N G
1988 57.5%

02 1993 48.9%
D IM IN I S HI N G
SO C IE TA L T RU S T 1998 40.2%

03 2003 38.6%

BRAND AS 2008 34.8%


B E N E FAC TOR

04 2013

2018
32.9%

30.2%
P R E C IS I O N
F UN D I N G

05
2020 28%
Source: Gallup, Fox Business, GivingUSA, NonprofitSource, Pew

Copyright © 2021 sparks & honey. All rights reserved. 83


FUTURE OF GIVING

Fresh approaches to faith and faith-based giving


E XI S T E NT I AL
RIS K S TO SIGNALS
HUMANIT Y

01
YO U T H R I SI N G

02
D IM IN I S HI N G
SO C IE TA L T RU S T

03 VIRTUAL FAITH EVENTS ENGAGE


INTEGRATING FAITH, GIVING AND
COMMUNITY
Faith-based giving circles like Ummah and Bay Area
BRAND AS Collective Giving, whose members are Muslims, Christian
B E N E FAC TOR NEW PARTICIPANTS

04
Women’s Giving Circle or Amplifier, a giving circle inspired
In 2020, many faith organizations of all denominations created by Jewish values, are seeing growth. They offer members a
online services and activities for the first time. In doing so, way to connect with their faith outside of a traditional
they’ve connected with younger, digitally native generations religious setting, and live their values alongside other
who hungered for supportive community in a period of community members—aspects that appeal to younger
P R E C IS I O N isolation and upheaval. Some faith organizations also report generations less likely to connect to religious institutions.
F UN D I N G

05
increased donations to their charitable projects once virtual
Source: ABCnews, “Ramadan Drives Donations, Memberships to Giving
components were added. Circles”
Source: BBC, Faith and Spirituality in the time of COVID

Copyright © 2021 sparks & honey. All rights reserved. 84


FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
PLACING FAITH IN SCIENCE
01 Rise in science-first funding initiatives
YO U T H R I SI N G

02 The absence of more traditional religious foundations has elevated


the tensions of science versus faith. Those keen on supporting their
values, but skeptical of religious institutions, are increasingly giving
entrepreneurs to focus on clean meat and plant-based alternatives in
the name of protecting animals. In turn, such establishments are
finding higher levels of support toward environmental and animal-
D IM IN I S HI N G to science-centric institutes and philanthropies, such as the Good protection efforts.
SO C IE TA L T RU S T

03
Food Institute, which works with scientists, investors and

BRAND AS
B E N E FAC TOR

04 M
Amount donated by country music

P R E C IS I O N
F UN D I N G
$1 icon Dolly Parton to Vanderbilt
University’s research to develop a
Covid-19 vaccine

05 Source: NYTimes

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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 MANY MINDSETS, COMING


TOGETHER TO GIVE
YO U T H R I SI N G

Donors are looking for


02
D IM IN I S HI N G
SO C IE TA L T RU S T
opportunities to give that offer
03 connection to values-based
BRAND AS
B E N E FAC TOR
communities, even if their
04 belief systems increasingly
P R E C IS I O N
F UN D I N G
exist outside traditional faith
05 organizations.
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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
04
HUMANIT Y

01
YO U T H R I SI N G
BRA ND AS
BENEFACTOR
02 Brands are taking on a greater role in
D IM IN I S HI N G society and culture, playing the
SO C IE TA L T RU S T

03
philanthropy card. But with that comes
responsibility and the expectation that they
exude the values people place on them.

BRAND AS
B E N E FAC TOR

04 CE O C H AN G E AG E N TS
P U R P O S E M E E TS P OWE R
WOR KP L ACE ACT I V I S M
PAGE 86
PAGE 94
PAGE 102

P R E C IS I O N
F UN D I N G

05
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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
BRAND AS BENEFACTOR
01 Giving and brands are becoming one and the same. People look to
brands as leaders in giving, but with that comes a responsibility to
brands to donate to the right causes but also to align their workplaces
and corporate actions to match those values. However, brands aren’t
YO U T H R I SI N G live up to the values they are meant to stand for. They can no longer always stepping up. In 2020, corporations were the only donor sector

02
be in a silo: purpose is expected in everything from a CEO’s behavior to give less than in 2019 despite the global pandemic, likely due to
to marketing campaigns, a sustainable supply chain and more. In declines in GDP and pre-tax profits. Even so, corporations on average
particular, Gen Z and Millennial givers expect to see their values are still giving a lower percentage of their pre-tax profits than in the
reflected in the brands they choose, and are ready with tweets and ‘80s and ‘90s, with just 0.8% donated in 2020 — despite trumpeting
D IM IN I S HI N G tags to hold accountable brands and CEOs that fall short. This CSR efforts more loudly than ever today.
SO C IE TA L T RU S T

03
accountability focus increasingly extends beyond just expecting

BRAND AS
B E N E FAC TOR

04
-6 % decline in charitable contributions
from US corporations in 2020 (the
P R E C IS I O N
F UN D I N G only donor sector to decline)

05 Source: Giving USA 2021

Copyright © 2021 sparks & honey. All rights reserved. 88


Brand As Benefactor

2020 Effect: From hashtags to 360


action and accountability
Brands have responded to a cultural moment in
which activism is “trending” by becoming
increasingly vocal about sociopolitical issues.
However, 2020 underscored that some brands are Activists Call Out Brands’
Empty Gestures
not backing up their social media statements with
meaningful donations or actions of allyship. On June 2020’s “Black Out Tuesday,” brands
and ordinary users alike flooded Instagram
with black squares as a gesture of their
Corporations were the only donor category to give support for racial justice. However, activists
quickly noted the dissonance between
LESS in 2020. There is greater pressure for some brands’ words of solidarity and their
lack of donations to relevant nonprofits,
brands to more fully commit to their professed coupled with brand histories of racial
discrimination in hiring, pay and product—
values in both their giving and how they do and publicly asked them to commit to do
better.

business.
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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02 CE O C H AN G E AG E N TS
D IM IN I S HI N G
SO C IE TA L T RU S T

03
CEOs are using their resources and power to tackle
issues such as student loan debt, environmentalism and
inequities. Under the watchful eyes of the public, they
face high expectations of delivering social initiatives.

BRAND AS
B E N E FAC TOR

04
P R E C IS I O N
F UN D I N G

05
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FUTURE OF GIVING

CEOs to take on greater social change roles


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 NOW FUTURE
YO U T H R I SI N G
Aversion to
CEO accountability
02 billionaires
A backlash against extreme wealth,
heightened by growing societal
O RGA N I Z AT I O N A L I M PAC T CEOs and corporate leaders will be tasked
with greater expectations from both the
D IM IN I S HI N G
SO C IE TA L T RU S T
inequities, also reflects on the efforts of public and internal stakeholders, but also

03
nonprofit organizations who are strongly receive greater rewards when they take
associated with people of great wealth. action on social change.

Openness
BRAND AS required
B E N E FAC TOR

04
The skepticism people have
toward CEOs and those with
extreme wealth will be met with
greater transparency.
P R E C IS I O N Organizations may consider public
F UN D I N G

05
reporting to help build greater
trust.

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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
CEO CHANGE AGENTS
01 As leaders of the world’s most important public and private taking their place in a blurring of the two, giving new meaning to
YO U T H R I SI N G organizaions, CEOs are in an intense spotlight, under media scrutiny corporate responsibility. Often extremely wealthy themselves, these

02
and public expectations to use their growing political and economic figures can also conflate philanthropy and inequality, a perception
influence to drive positive change in their communities and beyond. that may work against their best efforts. And when CEOs receive
CEOs are using their resources to address issues affecting many, greater attention, leaders of other organizations focused on giving
such as student loan debt, social and environmental justice and will be expected to become more visible and transparent in their
D IM IN I S HI N G
SO C IE TA L T RU S T emergencies like the pandemic. Where governments and institutions operations, too.

03
had a firm hold before, corporations and their executives are now

BRAND AS
B E N E FAC TOR

04
P R E C IS I O N
F UN D I N G 82 % Of people say corporations have
too much power and influence

05 Source: Pew Research

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FUTURE OF GIVING

CEOs can have a big impact, but scrutiny


E XI S T E NT I AL
RIS K S TO
over their giving is growing SIGNALS
HUMANIT Y

01
YO U T H R I SI N G

02
D IM IN I S HI N G
SO C IE TA L T RU S T

03 CEOS AND CELEBRITIES TEAM UP TO


HIGHLIGHT CRITICAL SOCIAL ISSUES
FEMALE PHILANTHROPISTS SHIFT
MEGA-GIVING
Mackenzie Scott is making waves with billions of dollars in
BRAND AS Rihanna and Twitter CEO Jack Dorsey paired up to donate
B E N E FAC TOR unsolicited donations “given with full trust and no strings
$4.2 million to Los Angeles shelters to support those facing

04
attached”, with a focus on organizations both led by and
domestic violence during the pandemic. The money will go
serving women and people of color. Scott has been noted for
toward shelter, expenses, meals and counseling for
her desire to give her wealth away relatively quietly, an
individuals and families that are particularly vulnerable. The
approach some philanthropy scholars like Indiana
support comes from Rihanna’s Clara Lionel Foundation as
University’s Debra Mesch say is more common amongst
P R E C IS I O N part of Dorsey’s plan to give $1 billion of his wealth to charity.
F UN D I N G female philanthropists, who she characterizes as less status-

05
Source: Harper’s Bazaar, "Rihanna and Twitter CEO Donate $4.2 Million to Local driven. As women’s influence in philanthropy increases, so
Shelters"
does pressure on CEOs to give boldly and in ways that put
more spotlight on giving organizations and less on the giver.
Source: The New York Times, "Giving Billions Fast, Mackenzie Scott Upends
Philanthropy "

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FUTURE OF GIVING

Extreme wealth associated with perceptions of philanthropy


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
Extreme wealth is associated with philanthropy in the eye of the
Share of U.S. Aggregate Income, 1970 - 2018
public. The number of billionaires in the world has skyrocketed
in just five years by 55%, to record levels. This rise in extreme
Those at upper income levels have seen their earnings
wealth comes at a time of growing economic inequality, with
YO U T H R I SI N G many calling attention to the fact that American billionaires’
consistently increase since 1970. Meanwhile, middle-class

02
wealth increased by over $1 trillion during the pandemic alone. income and lower-level incomes have dropped.
Consequently, the business practices and personal lives of CEOs
are attracting speculation and controversy, such as that
62%
surrounding Bill Gates and Elon Musk.
D IM IN I S HI N G
SO C IE TA L T RU S T
Middle Income 48%

03 43%

BRAND AS
B E N E FAC TOR
55 % 29%

Upper Income

04
Increase in the number of
billionaires globally, from 2013 to
2018 — the greatest
10% 9%
P R E C IS I O N concentration of wealth since the Lower Income
F UN D I N G
Gilded Age

05
1970 2018
Source: Financial Times Source: Pew Research, 2020

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FUTURE OF GIVING

More purpose, more power


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02 “Increasingly, companies feel like they need to do more to


D IM IN I S HI N G
SO C IE TA L T RU S T
maintain their power in society. They do that through
03 acquisitions, they do it through mergers, but they also do
BRAND AS
it by increasing their purpose and visibility. It’s just part of
B E N E FAC TOR

04
that natural cycle — sometimes, more is more.”

P R E C IS I O N
F UN D I N G — Bing Chen, Digital Media Entrepreneur, Investor, Cofounder of Gold House, sparks & honey

05
Advisory Board Member

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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
WANTED: PLEDGES FOR
01 SOCIAL CHANGE
Moving wealth-based skepticism aside
YO U T H R I SI N G

02 CEOs are often viewed as emblems of extreme wealth. Many people


still welcome efforts by CEOs to drive social change, from enhancing
urban infrastructure to applying funds to underserved causes. 76%
leader that triggers connotations of extreme wealth is empowered to
take on social change issues because of their access to such wealth.
There is growing pressure on CEOs to make themselves more
D IM IN I S HI N G of Americans say they want CEOs to take on social change, instead accountable to the broader public, by making tangible commitments
SO C IE TA L T RU S T

03
of waiting for the government to do so. This magnifies a tension that around giving and transparently sharing their progress toward these
is often present in corporate social responsibility led by CEOs: a goals.

BRAND AS
B E N E FAC TOR
Number of the wealthiest

04 individuals in the world who are

216
part of The Giving Pledge, a
RIS K S TO
platform for billionaires and their
HUMANIT Y
families who pledge to donate a

05 Source: The Giving Pledge


large portion of their wealth to
charity

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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 DO GOOD OR GO HOME

YO U T H R I SI N G

CEOs’ and leaders’ business


02 success and public perception
D IM IN I S HI N G
SO C IE TA L T RU S T

is increasingly tied to
03
BRAND AS
B E N E FAC TOR
willingness to make —and
04 make real — concrete and
P R E C IS I O N
F UN D I N G
accountable commitments to
05 social good.
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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02
D IM IN I S HI N G
P U R P O S E MEE TS P OWER
SO C IE TA L T RU S T

03 Brands are taking on the strategies of giving


organizations to satisfy values-based
consumers. Now more than ever, giving
organizations compete with brands.

BRAND AS
B E N E FAC TOR

04
P R E C IS I O N
F UN D I N G

05
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FUTURE OF GIVING

Brands and giving partnerships pave the way


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 NOW FUTURE
YO U T H R I SI N G
Brands as The brand

02
competitors companion
Brands have the lead in portraying ORGANIZATIONAL EFFECT Brand partnership models will evolve
their authority on generosity and into longer-term, symbiotic
D IM IN I S HI N G purpose — in some cases at the relationships that empower both brands
SO C IE TA L T RU S T

03
expense of giving organizations that and giving organizations to focus on
are actually doing so. their core competencies for giving.

Partners in
BRAND AS do-good crime
B E N E FAC TOR

04
While nonprofits are well-
positioned to tap into a culture
hungry for social change, giving
organizations will benefit from
P R E C IS I O N brand capabilities and
F UN D I N G

05
infrastructure through
collaboration.

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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
PURPOSE MEETS POWER
01 Giving organizations compete with brands

YO U T H R I SI N G
Brands are becoming the new authority on purpose. Values-based corporate giving accounted for just 4% of all charitable donations, while

02
consumers are drawn to brands that manifest their worldview and individuals themselves gave 68% of all charitable donations.
ideals. This puts nonprofits and other organizations focused on giving Furthermore, in the wake of the pandemic’s harm to small businesses,
into the perilous position of competing directly against behemoth growing numbers of consumers consider shopping small to be an act of
brands who are quick to grab attention, but may not actually be living charity in itself. In 2020, 27% of Gen Zers intending to give less to
D IM IN I S HI N G up to their outward-leaning purpose. Brands may laud themselves, for charity reported this was because they were giving money to support
SO C IE TA L T RU S T

03
example, for giving 1% of their pretax profits to charity, while most local businesses.
individuals give double that. Out of charitable gifts given in 2020,

BRAND AS
B E N E FAC TOR

04 Of consumers who identify as

P R E C IS I O N
F UN D I N G

05
64 % being values-driven say they
expect brands to represent
them to solve societal issues

Source: Edelman, Earned Brand 2020

Copyright © 2021 sparks & honey. All rights reserved. 10 0


FUTURE OF GIVING

Weaving altruism into corporate strategy to


E XI S T E NT I AL
RIS K S TO
create better brand citizens SIGNALS
HUMANIT Y

01
YO U T H R I SI N G

02
D IM IN I S HI N G
SO C IE TA L T RU S T

03 VITA COCO DONATES $1 MILLION


TO VULNERABLE COMMUNITIES
The coconut water brand, which has seen its sales soar as
BRAND AS FASHIONABLY DOING GOOD people stock up during the pandemic, donated $1 million of
B E N E FAC TOR

04
Millennial-favorite clothing company Reformation has won its incremental profits to Feeding America and No Kid Hungry
the hearts of young shoppers by making doing good the in support of the most vulnerable communities.
center of its brand, baked into every layer of its operations. Source: CSPDailyNews, "Vita Coco Gives $1 Million to Covid-19 Relief Efforts“
This includes, but also extends beyond, donations to
organizations like Feeding America to projects like a circular
P R E C IS I O N fashion recycling program that consumers can directly
F UN D I N G

05
participate in to both learn more about sustainability and take
action themselves.
Source: Forbes, "Ethical Fashion: How Carbon-Neutral Reformation is Reforming
the Notoriously Wasteful Fashion Industry"

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FUTURE OF GIVING

Consumption as an act of purpose


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02 “For values-driven consumers and younger generations,


D IM IN I S HI N G
SO C IE TA L T RU S T
they want to have purpose, they want to be included and
03 know that they’re working toward something purposeful.
BRAND AS There is a huge opportunity for nonprofits 

B E N E FAC TOR

04
to give them that sense of purpose through giving.”

P R E C IS I O N
F UN D I N G

05
— Dr. Nathan Walworth, Cofounder of NEXUS Futures, CoVALENCE, Experience Designer

Copyright © 2021 sparks & honey. All rights reserved. 10 2


FUTURE OF GIVING

Consumers demand brands go beyond


E XI S T E NT I AL
RIS K S TO simply donating to support their causes
HUMANIT Y SIGNALS

01
YO U T H R I SI N G

02
D IM IN I S HI N G
SO C IE TA L T RU S T

03 CONSUMERS CALL FOR CORPORATE


RETAILERS SIGN ON TO SUPPORT
BLACK BUSINESSES
BRAND AS
B E N E FAC TOR ACCOUNTABILITY ON INCLUSION 2020’s movement for racial justice inspired a growing number

04
of consumers and retailers to “Buy Black,” aiming to advance
After seeing many brands post anti-racism statements, Sharon racial equity by championing Black businesses. Retailers
Chuter asked brands to #pulluporshutup and release their including Macy’s, Sephora, Rent the Runway and West Elm
Black employment metrics. Consumers tagged and tweeted at took the 15% Pledge after pressure from consumers,
brands to urge them to participate. This call for transparency promising to devote 15% of their total purchasing power to
P R E C IS I O N evolved to include other data on marginalized groups in supporting Black-owned businesses and agreeing to
F UN D I N G leadership roles, as well as concrete commitments to increase

05
independent monitoring of their progress toward this goal.
corporate diversity, equity and inclusion, and to donate to
Source: Vogue "The Future of the 15% Pledge"
organizations directly promoting employment equity.
Source: Refinery29, ""Sharon Chuter Wants You to Care About the Workplace
Demographics of Your Favorite Brands“

Copyright © 2021 sparks & honey. All rights reserved. 10 3


FUTURE OF GIVING

Ethics and competency meet in partnership model


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
Brands and giving organizations have the potential to
Better Together
synergistically complement one another. Where
businesses are seen as far less ethical than NGOs, they
are seen as far more competent than nonprofits. Brands are viewed as more competent,
YO U T H R I SI N G
Partnerships can help strengthen each organizational while nonprofits are seen as more ethical

02
types’ weaknesses in the public imagination by uniting
moral vision and the ability to get things done.

-5

COMPETENT
Conscious consumers (especially Gen Z and Millennial
D IM IN I S HI N G ones) are increasingly aware of how some corporations’
SO C IE TA L T RU S T

03
business practices may actually be contributing to the
problems they claim to want to solve through their
giving, such as brands that claim to support gender
14
equality but which don’t pay employees equitably.
BRAND AS Giving organizations can partner with brands to
B E N E FAC TOR
16
04
translate good intentions into meaningful actions, both
through giving and in corporate decision-making.

ETHICAL
5
P R E C IS I O N
F UN D I N G

05 -8

BUSINESS
-4

NGOS
0 4 8 12 16

Source: 2021 Edelman Trust Barometer

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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
BETTER TOGETHER

YO U T H R I SI N G
Brands and giving
02 organizations can build a
D IM IN I S HI N G
SO C IE TA L T RU S T
new holistic model of
03 partnerships for purpose,
BRAND AS
B E N E FAC TOR

with brands evolving from


04
P R E C IS I O N
F UN D I N G
donors to true 360 partners
05 in creating social good.
Copyright © 2021 sparks & honey. All rights reserved. 10 5
FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02
D IM IN I S HI N G
SO C IE TA L T RU S T
WOR KP L ACE ACT I V I S M

03 Companies are starting charitable giving programs


to attract talent and engage a growing class of
workers who view activism as a core value.

BRAND AS
B E N E FAC TOR

04
P R E C IS I O N
F UN D I N G

05
Copyright © 2021 sparks & honey. All rights reserved. 10 6
FUTURE OF GIVING

Employee activism will define giving at work and beyond


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 NOW FUTURE
YO U T H R I SI N G The empowered A giving

02
employee workforce
Consumers and workers alike expect As corporate giving programs become
organizations to make meaningful ORGANIZATIONAL EFFECT the norm, rising from a socially active
contributions to people, communities, workforce, they will also empower
D IM IN I S HI N G
SO C IE TA L T RU S T social programs and the economy. consumers to become giving-minded

03
on an individual level.

BRAND AS
B E N E FAC TOR
New streams of

04
giving revenue
The growth of distributed
networks of giving, like at work,
will provide giving organizations
P R E C IS I O N
F UN D I N G with more opportunities for

05
recurring donations.

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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
SOCIALLY CONSCIOUS
01 AT WORK
YO U T H R I SI N G A socially conscious workforce is coming together to change lives by major new events and unwavering when it comes to the future:

02
and systems, demanding action where inaction previously 70% of Millennial employees say they can make an even greater
prevailed. This can create friction when executive and employee imprint on the world than the leaders who are tasked to do so in
values are at odds. As Gen Z ages into the working world, these organizations. While many organizations may tout their purpose-led
young activists stand out with their collective demands for social programs, it’s the internal push from employee activism that asks
D IM IN I S HI N G
SO C IE TA L T RU S T change, and they are not afraid to whistleblow, company or them to uphold those values and, yes, do better.

03
organization notwithstanding. Their steadfast resolve is heightened

BRAND AS
B E N E FAC TOR

04 Of Millennials consider the

P R E C IS I O N
F UN D I N G

05
76 % environmental and social
commitments of a company before
deciding to work there

Source: Cone Communications, "Millennial Employment Study"

Copyright © 2021 sparks & honey. All rights reserved. 10 8


FUTURE OF GIVING

Empowering employee activism


from the inside out
E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
SIGNALS

YO U T H R I SI N G

02
D IM IN I S HI N G
SO C IE TA L T RU S T

03 GOOGLE EMPLOYEES’ ACTIVISM


REVERSES GOVERNMENT CONTRACT
BRAND AS After agreeing to work with the Pentagon on “Project Maven,”
B E N E FAC TOR

04
a pilot program to help develop computer vision technology for
SALESFORCE’S NEW MODEL FOR its drones, over 3,000 Google staffers expressed concern over
EMPLOYEE GIVING the project’s violation of the company’s purpose, Do No Evil,
and they successfully petitioned that Google end its
Salesforce and United Way Worldwide introduced a new involvement with the project.
P R E C IS I O N Salesforce.org Philanthropy Cloud, which allows employees
F UN D I N G Source: The Verge, "Google Reportedly Leaving Project Maven Military AI
to volunteer and donate to the causes they care about.

05
Program"
Source: MarTech Series

Copyright © 2021 sparks & honey. All rights reserved. 10 9


FUTURE OF GIVING

Organizations need to meet future employees’ demands


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02
D IM IN I S HI N G
SO C IE TA L T RU S T
“It’s not just about shareholders and consumers, because if

03
any of these companies want to attract great employees,
they need to have purpose.Younger generations of
BRAND AS
B E N E FAC TOR
employees are demanding corporate accountability, and

04 many organizations are struggling with that.”

P R E C IS I O N
F UN D I N G

05
— Alisa Miller, CEO & Cofounder of Pluralytics, sparks & honey Advisory Board Member

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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 R E TA I N TA L E N T BY E N C O U R AG I N G
T H E I R VO I C E S
YO U T H R I SI N G

02 Employees will take on their


D IM IN I S HI N G
SO C IE TA L T RU S T activist stripes, and it’s up to
03 organizations to align both
BRAND AS
B E N E FAC TOR
their external and internal
04 actions with employee values.
P R E C IS I O N
F UN D I N G

05
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E XI S T E NT I AL
RIS K S TO
05
HUMANIT Y

01
YO U T H R I SI N G
PR ECISION
02 FUNDIN G
D IM IN I S HI N G
Giving organizations are turning to
SO C IE TA L T RU S T
technology, such as AI, algorithms and

03 social data, to make giving as easy and


effective as possible.

BRAND AS
B E N E FAC TOR

04 M OV E M E N T F OR E F F E CT IV E G IV IN G
S TART U P AP P E AL
DATA P H I L A NT H RO P Y
PAGE 110
PAGE 115
PAGE 121

P R E C IS I O N
F UN D I N G

05
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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
PRECISION FUNDING
01 The act of giving is becoming more seamless and intuitive, thanks to with added pressure for nonprofits. The dawn of new data collection
YO U T H R I SI N G technology innovations that are designed to bring social issues to the and analysis methods increases demands to show effective giving in

02
forefront. One such example is Google Assistant’s new feature that numbers and share such knowledge. The question becomes: What
allows users to directly donate to a cause or nonprofit of their choice does “good” really look like, and how can organizations meet this
by voice.  While precision technologies are helping nonprofit rising challenge brought on by technology and the demands of
organizations become more effective, these technologies also come future givers?
D IM IN I S HI N G
SO C IE TA L T RU S T

03
BRAND AS
B E N E FAC TOR

04 of nonprofits report that the

60 % pandemic threatened their long-


term stability, pushing them to
P R E C IS I O N
F UN D I N G reconsider funding and

05
organizational strategy

Source: GHJ Advisors

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Precision Funding

2020 Effect: From inevitable digital


future to present reality
While some of the social changes associated
with the pandemic may wane as we put this
emergency behind us, the new structures
Nearly three-quarters of
built to handle this moment and the lessons nonprofits report a shift
toward digital fundraising
learned during this fraught time will likely in the pandemic
Charities Aid Foundation of America
remain. For funding, this means digital released a study in spring 2021 that asked
small nonprofits about how the pandemic
transformation has been rapidly accelerated impacted their fundraising strategy. Nearly
all reported the need to shift, and a great

thanks to this extraordinary moment and will majority reported turning to digital
methods and big data to bridge the gap.
Even post-pandemic, this mass experiment
be a critical part of the funding toolkit going in precision fundraising is likely to continue
to impact nonprofit funding models going
forward. forward.

Copyright © 2021 sparks & honey. All rights reserved. 114


FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02
D IM IN I S HI N G M OV E M E N T F OR
E F F E CT IV E G IV IN G
SO C IE TA L T RU S T

03 A movement that seeks to use evidence and reason


to do good and improve lives around the world.

BRAND AS
B E N E FAC TOR

04
P R E C IS I O N
F UN D I N G

05
Copyright © 2021 sparks & honey. All rights reserved. 115
FUTURE OF GIVING

Data and empathy to fuel giving efforts


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 NOW FUTURE
YO U T H R I SI N G
Focus on why Spotlight where and

02 we give
Inspiring the human need and O RGA N I Z AT I O N A L I M PAC T
how we give
Giving organizations will focus on the
desire to give, often with efforts delivery and measurement of their efforts,
D IM IN I S HI N G
SO C IE TA L T RU S T culminating in big annual events, using things like annual reports to show

03
such as giving galas. their tangible giving data.

Show me
BRAND AS
B E N E FAC TOR the giving

04 The act of giving is being driven


by a growing desire for more
transparency in the collective
P R E C IS I O N
F UN D I N G
effort of giving.

05
Copyright © 2021 sparks & honey. All rights reserved. 116
FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
MEASURE HOW WELL
01 YOU GIVE, OR DON’T
YO U T H R I SI N G Giving organizations are under increasing pressure to measure how million nonprofits. Measuring effectiveness does affect how people

02
well they do or don’t do. The call for quantified altruism is a give, too, with 41% of donors changing their approach to giving
response to the availability of new technology and the demands of thanks to access to tools for researching the funding and
future givers. There is more openness and knowledge available now effectiveness of nonprofits. At the same time, giving is still very
to givers with tools such as Charity Navigator, which rates charities much connected to compassion, empathy and human emotion,
D IM IN I S HI N G based on transparency and track record, or Guide Star, which creating tension around how to best donate based on personal
SO C IE TA L T RU S T

03
collects, organizes and distributes information on more than 2.7 motivations.

BRAND AS EMPATHETIC GIVING


B E N E FAC TOR

04
59 % Of people donate because the
P R E C IS I O N
F UN D I N G
cause or organization is

05
personally important to them

Source: BBC, "Why We Need More Emotion to Save the World"

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FUTURE OF GIVING

Consider community engagement as a giving metric


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02
D IM IN I S HI N G
SO C IE TA L T RU S T
“Charities think of generosity in terms of fundraising and

03
charitable donations, and that’s ultimately how they
measure it internally. They need to flip those metrics and
BRAND AS
B E N E FAC TOR
think more around community engagement that you can

04 mobilize after a campaign is finished.”

P R E C IS I O N
F UN D I N G

05
— Rachel Botsman, Trust Fellow at Oxford University’s Saïd Business School, Author of Who Can You Trust?

Copyright © 2021 sparks & honey. All rights reserved. 118


FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
TRANSPARENT DATA PROMPTS GIVING
01 Moments of major cultural
YO U T H R I SI N G

friction, like a global pandemic,


02 make creative use of data
D IM IN I S HI N G
SO C IE TA L T RU S T

even more important. This


03
BRAND AS
B E N E FAC TOR
need to rethink how funds are
04 given and raised also has
P R E C IS I O N
F UN D I N G
impacts down the line for
05 values and commitments.
Copyright © 2021 sparks & honey. All rights reserved. 119
FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02
D IM IN I S HI N G
S TART U P AP P E AL
SO C IE TA L T RU S T

03 Giving organizations are acting like startups.


This Shark Tank approach means rethinking donor
pitching, which problems to tackle, and how to
measure growth and efficiency.

BRAND AS
B E N E FAC TOR

04
P R E C IS I O N
F UN D I N G

05
Copyright © 2021 sparks & honey. All rights reserved. 12 0
FUTURE OF GIVING

Startup ideals enhance donor strategies


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 NOW FUTURE
YO U T H R I SI N G
Selling the idea Think like

02 of “good”
Giving organizations have gone to
traditional donors who are looking to
ORGANIZATIONAL EFFECT
a startup
Organizations will start thinking and
acting like startups, pitching investors
D IM IN I S HI N G sell the mindset of giving. with a growth mindset and using
SO C IE TA L T RU S T

03
new data models.

BRAND AS
B E N E FAC TOR
The great

04
startup challenge
Organizations will be challenged
with taking on a startup mindset
P R E C IS I O N and being nimble in the process.
F UN D I N G

05
Copyright © 2021 sparks & honey. All rights reserved. 121
FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y
IT’S TIME TO ACT
01 LIKE A STARTUP
YO U T H R I SI N G

02
Nonprofits are taking on the challenge of acting like a startup. With the were previously untold, revealing gaps in cultural attention and where
pressure of transparency and proving efficiencies made all the more real philanthropic funds are actually going. One example highlights the
in 2020 by outside circumstances, data models are becoming vital for need for increased support on a local level: the Giving Code Report
demonstrating effectiveness and a shift toward a mindset of growth. found that less than 10% of Silicon Valley donations went to local
D IM IN I S HI N G The increased use of and reliance on data is uncovering stories that nonprofits.
SO C IE TA L T RU S T

03
BRAND AS
B E N E FAC TOR

04
76 % Of the trust capital of business
is driven by ethical drivers:
P R E C IS I O N
F UN D I N G purpose, integrity, dependability

05 Source: 2020 Edelman Trust Barometer

Copyright © 2021 sparks & honey. All rights reserved. 12 2


FUTURE OF GIVING

Scale giving by crowdfunding


E XI S T E NT I AL
RIS K S TO
HUMANIT Y
and collaborations SIGNALS

01
YO U T H R I SI N G

02
D IM IN I S HI N G
SO C IE TA L T RU S T

03 TECH NONPROFIT ACCELERATORS


Similar to traditional accelerators like Y Combinator, Fast
Forward selects early-stage startups working on large social
BRAND AS
B E N E FAC TOR CROWDFUNDED MODELS OF challenges and helps them scale their products, investing an

04
GIVING unrestricted $25,000 in each tech nonprofit startup.
Kiva gives financial access to underserved communities Source: TechCrunch, "Fast Forward Raises New War Chest to Fight Silicon
through crowdfunded digital microfinancing. Their efforts to Valley Inequality Machine"

connect donors to entrepreneurs in the developing world


P R E C IS I O N relies on fast, digital-forward solutions and led to the creation
F UN D I N G of a new crisis loan product designed specifically to get

05
microloans to small nonprofits in the pandemic.
Source: The Guardian, "In a Cash-Strapped World, Are Microloans the Answer?"
Kiva “Introducing Crisis Support Loans.”

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FUTURE OF GIVING

Run giving like a for-profit company


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02
D IM IN I S HI N G “The best nonprofits are run like for-profit companies and can
SO C IE TA L T RU S T

03
actually quantifiably demonstrate their impact. 

Most nonprofits cannot do that still. I think many confuse means
BRAND AS
with ends. Engaging a certain number of students or hosting a
B E N E FAC TOR
certain number of events is not demonstrating impact.”
04
P R E C IS I O N
F UN D I N G — Bing Chen, Digital Media Entrepreneur, Investor, Cofounder of Gold House,

05
sparks & honey Advisory Board Member

Copyright © 2021 sparks & honey. All rights reserved. 12 4


FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01 INCREASE AGILIT Y

YO U T H R I SI N G

Giving organizations that


02 embrace a startup mentality to
D IM IN I S HI N G
SO C IE TA L T RU S T

envision, test and scale ideas


03
BRAND AS
B E N E FAC TOR
will be ready to sync with the
04 values and expectations of the
P R E C IS I O N
F UN D I N G
next generation.
05
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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02
D IM IN I S HI N G
SO C IE TA L T RU S T
DATA P H I L A NTH ROPY

03 Data is the new currency of giving that both big


and small donors alike can offer as charitable
donations, along with their time and talents.

BRAND AS
B E N E FAC TOR

04
P R E C IS I O N
F UN D I N G

05
Copyright © 2021 sparks & honey. All rights reserved. 12 6
FUTURE OF GIVING

Collective good comes from sharing


E XI S T E NT I AL
RIS K S TO
HUMANIT Y
and amplifying your results

01 NOW FUTURE
YO U T H R I SI N G
Open up data

02
Insular data
for sharing
Brands and organizations do their ORGANIZATIONAL EFFECT Organizations and brands will work
D IM IN I S HI N G
best to use data to support their toward using data and technologies
SO C IE TA L T RU S T philanthropic goals. to collaborate on a preferred

03
future together.

BRAND AS
B E N E FAC TOR Combined and

04 amplified
Giving becomes more powerful and
transparent through strategies that
P R E C IS I O N
F UN D I N G share and amplify data for the

05
collective good.

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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
DATA IS A CURRENCY
FOR GIVING
HUMANIT Y

01 Data advancements are opening up new avenues for giving, where


personal data from a device or through connected devices, like a
measure success. It’s still something many nonprofits struggle with,
reveals the Connecting Dollars to Outcomes study: 80% of nonprofit
YO U T H R I SI N G thermostat in your home, can turn into a currency for donation. leaders said measuring efficiency was key to their efforts, but only

02
Offering your social media or health data for a specific cause, such 46% felt that they had access to the right tools to do so. A willingness
as suicide prevention, is possible through organizations such as to share that information is key to breaking down barriers that exist
OurDataHelps. Or donate data directly to researchers through apps in data sharing, or not sharing, as the case may be. Organizations
like Bitmark. Research suggests that people are willing to donate such as OpenImpact are working on connecting philanthropic
D IM IN I S HI N G
SO C IE TA L T RU S T their data, as long as it’s for the benefit of public good or to advance capital to the best ideas, leaders and organizations, collaborating to

03
science or a more sustainable way of living. Giving organizations, in make effective change. 
turn, are learning to look at data in new ways, finding metrics to

BRAND AS
B E N E FAC TOR

04 Data silos are among the largest

P R E C IS I O N
F UN D I N G

05
27 % operational challenges for
nonprofits in connecting funds to
outcomes

Source: Cision, "Where Do Donations Go?"

Copyright © 2021 sparks & honey. All rights reserved. 12 8


FUTURE OF GIVING

Data can do more when it’s shared


E XI S T E NT I AL
RIS K S TO
HUMANIT Y SIGNALS

01
YO U T H R I SI N G

02
D IM IN I S HI N G
SO C IE TA L T RU S T

03 EMERGING NEED FOR LONG-TERM


DATA-SHARING SOLUTIONS
2020 showed nonprofits and institutions how to get data to
BRAND AS
B E N E FAC TOR DATA DONATION COMBATS THE needy people in a moment of crisis. Going forward, states like

04
“HOMEWORK GAP” Colorado are implementing far more complex and long-term
The coronavirus pandemic shift to remote schooling left versions of these solutions as they recognize that data sharing
students without means struggling due to the digital access and access are now core human infrastructure needs.
gap, making it impossible for them to attend class and do Source: Pew. “A National Solution to the Digital Divide Starts with States”
P R E C IS I O N basic tasks like homework. To remedy, this providers like T-
F UN D I N G

05
Mobile developed programs to donate Wi-Fi access to over 10
million students learning at home.
Source: The Verge, "T-Mobile details plan to give free internet to students"

Copyright © 2021 sparks & honey. All rights reserved. 12 9


FUTURE OF GIVING

Data to provide real evidence of giving


E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
YO U T H R I SI N G

02 “Data is both a huge challenge and a huge opportunity.


D IM IN I S HI N G
SO C IE TA L T RU S T
People would be far more likely to give if they could be

03 confident that their money was going to be used well. But part
of the problem is data is that too often the wrong things are
BRAND AS
B E N E FAC TOR
being measured. Instead of the data that is easiest to collect,

04 but may not tell us much of significance, we need to find ways


to measure what really matters.”
P R E C IS I O N
F UN D I N G

05
— Matthew Bishop, Journalist, Author, Cofounder of Giving Tuesday, Philanthropy Expert

Copyright © 2021 sparks & honey. All rights reserved. 13 0


FUTURE OF GIVING

Showing giving in data


E XI S T E NT I AL
RIS K S TO
HUMANIT Y Nonprofits are tapping into data to show the real

01
value of contributions of givers, large and small

YO U T H R I SI N G
New Metrics in Giving Data

02 1
D IM IN I S HI N G
SO C IE TA L T RU S T
3

03
SROI
2 QALY
4
Social Return on Investment
can help corporations look Quality-Adjusted Life
at their social impact in
financial terms, and
IMM Year is a measure of
BRAND AS disease burden, including NPS
B E N E FAC TOR philanthropists, VCs, Calculating the Impact
both the quality and the

04
foundations and nonprofits Multiple of Money allows Net Promoter Scores are
quantity of life lived.
can use it to monetize their for direct comparisons typically known for being a
social impact. between investment customer satisfaction metric,
opportunities to evaluate but nonprofits are also using
their positive impact. them to understand loyalty,
P R E C IS I O N retention and success.
F UN D I N G

05
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FUTURE OF GIVING

E XI S T E NT I AL
RIS K S TO
HUMANIT Y

01
S H A R I N G DATA B E N E F I T S A L L
S TA K E H O L D E R S
YO U T H R I SI N G

02 Don’t be a data hoarder, share


D IM IN I S HI N G
SO C IE TA L T RU S T it for the collaborative good —
03 with partners and
BRAND AS
B E N E FAC TOR
organizations, and as a metric
04 for future givers.
P R E C IS I O N
F UN D I N G

05
Copyright © 2021 sparks & honey. All rights reserved. 13 2
FUTURE OF GIVING

Take action on the future of giving

01 02 03
E X IS T ENT IA L
YOUT H DI M INIS H IN G
R IS K S TO
RI SIN G S OC IETAL TRU S T
H U MA NIT Y

PREVENTING FUTURE AI E V O LV E O R B E L E F T B E H I N D TA RG E T E D T RU S T S T R AT E G I E S
INEQUALIT Y
With the pandemic accelerating Gen Z and Millennials are setting new Winning donor trust means tailoring strategies
automation, philanthropies and standards for diversity, inclusion and more. 
 to specific audiences. Technology, passionate
allies face greater urgency in Is your organization’s giving DNA ready for the purpose and transparent metrics can all be
giving humans a voice in policy change these young people now demand? powerful tools to fight distrust.
and design decisions that protect
human rights in an AI world.
VIRTUAL GIVIN G IS
ESSENTIAL

GIVING TO FUTURE-PROOF Philanthropies must invest in SMALL DOLLARS, BIG CHANGES


reskilling talent to bring giving Build on recent micro donation
With donors most moved to give in into the digital era, and for- momentum by honoring the big
moments of disaster, nonprofits can profits must consider new aggregate impact of small
help donors see the connection ways to embed virtual giving donations, and uplift the value
between proactively giving to build into their core business. non-monetary contributions like
long-term resiliency and the social sharing can have.
amelioration, or prevention, of future
crises.

GIVING FOR LASTING CHANGE MANY MINDSETS COMING TOGETHER


UNITING TO BUILD TO GIVE
RESILIENCY Future generations are increasingly
focused on solving what they view as the Donors are looking for opportunities to
Focusing on resiliency root causes of social issues, such as
measures over politics give that offer connection to values-
wealth inequality. based communities, even if their belief
unites everyone by focusing
on imminent adaptation, at systems increasingly exist outside
a critical moment of traditional faith organizations.
opportunity for resilient
infrastructure investment.

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FUTURE OF GIVING

Take action on the future of giving

04 BRA ND AS
BE N EFAC TOR 05 P REC IS IO N
F U ND IN G

T R A N S PA R E N T DATA P RO M P T S G I V I N G
DO GOOD OR GO HOME
Moments of major cultural friction, like a
CEOs’ and leaders’ business success global pandemic, make creative use of data
and public perception is increasingly even more important. This need to rethink
tied to willingness to make—and make how funds are given and raised also has
real— concrete and accountable impacts down the line for values and
commitments to social good. commitments.

INCREASE AGILIT Y

BETTER TOGETHER Giving organizations that embrace


a startup mentality to envision, test
and scale ideas will be ready to
Brands and giving organizations can sync with the values and
build a new holistic model of expectations of the next
partnerships for purpose, with brands generation.
evolving from donors to true 360
partners in creating social good.
S H A R I N G DATA B E N E F I T S A L L
S TA K E H O L D E R S
R E TA I N TA L E N T BY E N C O U R AG I N G Don’t be a data hoarder, share it for
T H E I R VO I C E S the collaborative good — with
partners and organizations, and as a
Employees will take on their activist
metric for future givers.
stripes, and it’s up to organizations
to align both their external and
internal actions with employee
values.

Copyright © 2021 sparks & honey. All rights reserved. 134


+

Gen Z Addendum
Gen Z
Addendum
Objective: More deeply understand the cultural significance
of Gen Z within the Future of Giving (FoG) space and how
organizations can leverage this critical audience’s strength
and influence for good

136
Gen Z Addendum

Trend Identification Trend Mapping Signal Contextualization Implications

Using sparks & honey’s Map the top 10-15 Gen Z trends Illustrate these crucial connection Develop 3-5 overarching
intelligence system Q™, against the 30 previously points through signal exploration, takeaways that outline the key
determine the top Elements of identified trends within the core identifying examples of how Gen benefits Gen Z can provide to the
Culture that are most Future of Giving analysis to Z behaviors and practices can giving space and how
impacting the lives of the Gen understand where the strongest serve as an accelerant for organizations can take advantage
Z audience. cultural connections exist. organizations with giving goals of these values moving forward.
and initiatives.

Methodology

Copyright © 2021 sparks & honey. All rights reserved.


137
10-25 year olds, generally known as Generation Z,
can be described as an age group that is diverse,
values-driven, and skeptical.

Where previous generations may have mixed


attitudes toward institutional change, Gen Z is
poised with a petition in one hand and a megaphone
in the other.

Making the world a better place may sound like a


daunting task to a group on the cusp of adulthood,
but this generation is more than ready to effect
change…and the organizations that fail to join them
138
138
Gen Z
Trend Mapping and
Contextualization

139
The Overlapping EOCs at the Intersection of the Future of
Giving Analysis and Gen Z Culture

Top Future of Giving Trends Overlapping Trends Top Gen Z Trends

shifting soils

data quantified
divinity life

power modern
woman family

squealing moral snack media


imperative

refreshed
kidult classics
crowd
economy
unmoney sustainability

new
blurred ID masculinity
brand outsiders
radical neo-celebrity
activist welcome
work shift transparency

play micro tribes


brand civil
constant
open servants frictionless life logic
connection

defictionalization

extreme background as shadow


safety foreground world

taboo
flattening toppling

Source: sparks & honey QTM

| Copyright © 2021 sparks & honey. All rights reserved. 140


Defining the Resulting Overlapping Trends

Overlapping Trends

outsiders
snack media welcome neo-celebrity life logic

People and Social media and The ability to access, People traditionally or The road to celebrity Organizations are
institutions are content demands are understand, empathize historically perceived has shifted, with new taking ecosystem-level
adapting to a new shortening attention with and learn from as the “other” and platforms and approaches to the
cultural imperative of spans and changing different ways of “outsiders” being technology market in an
owning one’s choices how institutions perceiving across brought into and accelerating who can increasingly
and behaviors develop effective modalities and using becoming part of the rise to fame and their interconnected and
without concern for messaging strategies. those insights to effect unexpected spaces resulting, more complex environment.
judgment. changes within culture and institutions. complex relationship
and organizations. with their fan base.

Source: sparks & honey QTM

| Copyright © 2021 sparks & honey. All rights reserved.


Each generation has their Gen Z Culture
own unique values, but few
are quite so strong in their
commitments as Gen Z. This
vision is central to their
identity, making values Gen Z has a taste for the anachronistic and imperfect
compromise feel like an outsiders, rewarding brands and influencers who boldly
affront to their sense of self. own their true nature and avoid pressure to fit in.

Gen Z x Giving

88%
The vast majority of Gen Z
unapologetically believes their People and institutions are
generation has the ability to adapting to a new cultural
Young Africans, whose countries will bear the brunt
change the world today. imperative of owning one’s
choices and behaviors without
of climate change, are demanding access to decision-
concern for judgment. making spaces determining global green policy.
Source: sparks & honey QTM
| Copyright © 2021 sparks & honey. All rights reserved. 142
As digital natives, Gen Z has a Gen Z Culture

naturally shortened attention


span. This, however, doesn’t
preclude the desire for rich
media experiences in that
smaller timeframe - changing As though swiping right or left was not fast enough,
messaging strategies for this Snack, a new Gen Z dating app, wants to be Tinder for
TikTok by implementing short video formats.
entire generation.
Gen Z x Giving

~8S
Gen Z has an attention
snack media

span of about 8 seconds — Social media and content


just about the length a demands are shortening
video on the defunct but attention spans and changing A study finds that Tiktok is Gen Z’s primary platform
influential Vine platform. how institutions develop for learning about social issues — shifting their
effective messaging strategies. expectations about how information is gained.
Source: sparks & honey QTM
| Copyright © 2021 sparks & honey. All rights reserved. 143
Gen Z, almost above all else, Gen Z Culture
wants to share their truth.
This means both listening to
marginalized voices, but also
questioning what our
perspectives really mean to
Gen Z Is deconstructing religion by “taste-testing"
find empathy and belief systems, adopting multiple labels and tenets in a
understanding in that process. bid for evolved perspective and wisdom.

Gen Z x Giving

55%
of Gen Z’ers said that The ability to access, understand,
identity labels increase empathize with and learn from
empathy for others. different ways of perceiving Gen Z’s embrace of social justice slideshows on
across modalities and using those Instagram has allowed individuals to change how
insights to effect changes within
others in their network see the world.
culture and organizations.
Source: sparks & honey QTM
| Copyright © 2021 sparks & honey. All rights reserved. 144
Entrepreneurial and diverse, Gen Z Culture
Gen Z isn’t bound by the same
social rules about belonging
that impacted previous
generations. They see value
not only in breaking identity Lauren Simmons, a young Black woman, has gained a
barriers, but in reimagining following among Gen Z as both a financial expert and
institutions and behaviors all role model by breaking into the NYSE’s old boys’ club.

together. Gen Z x Giving

48%
Gen Z is nearly half non-
outsiders
welcome

People traditionally or
white, which means barrier historically perceived as the
breaking and inclusion are “other” and “outsiders” being
Famous for his stunts, 22-year-old YouTuber MrBeast
simply innate to them.  brought into and becoming
part of the unexpected spaces has also leaned into philanthropy, bringing real
and institutions. resources and an unusual profile to his giving.
Source: sparks & honey QTM
| Copyright © 2021 sparks & honey. All rights reserved. 145
Gen Z celebrities are often a Gen Z Culture
unique blend of talent, strong
personal branding and activism,
making their content
inseparable from their values.
This earns major credibility - Poet Laureate Amanda Gorman’s blend of poetry and
and ultimately influence - with activism grabbed the world’s attention at Joe Biden’s
their legions of dedicated fans. inauguration, situating her as the voice of generation.

Gen Z x Giving

44%
of Generation Z has made
neo-celebrity

The root to celebrity has shifted,


a purchase decision based
with new platforms and
on a recommendation from
technology accelerating who can
a social influencer, TikTok is joining other disruptive giving platforms to
compared with 26% of the rise to fame and their resulting,
more complex relationship with help influencers to connect with Gen Z fans in order to
general population
their fan base. raise money for their favorite charities.
Source: sparks & honey QTM
| Copyright © 2021 sparks & honey. All rights reserved. 146
The way to Gen Z’s heart is Gen Z Culture
not to entice them into new
behaviors and values, but
rather to match their firmly
rooted thinking. This
development has forced The Guess Gen Z lab has teamed up with Microsoft to
organizations to come to them launch a next-gen co-creation initiative, sourcing
and not, as usually happens, designs to directly match their young clientele’s needs.

the other way around. Gen Z x Giving

58%
of Gen-Z is willing to pay
life logic

Organizations are taking


more for products that are ecosystem-level approaches to
targeted to their individual the market in an increasingly Tom’s abandons “one-for-one” model, committing to
personalities and needs. interconnected and complex
donating a third of annual revenue to social justice in
environment
new bid for Gen Z relevance.
Source: sparks & honey QTM
| Copyright © 2021 sparks & honey. All rights reserved. 147
Gen Z
Charitable Giving Implications

148
Inclusion is nothing
short of existential
for Gen Z.
As the most diverse generation to date,
Gen Z expects institutions to radically
reimagine both their corporate
governance and the stakeholders they
serve. They are also quick to call out
false flags or half-hearted attempts at
diversity, equity and inclusion.

Copyright © 2021 sparks & honey. All rights reserved. 149


For Gen Z, trust is far
more personal and
far less institutional.
With perspectives formed both by social
media culture and a skepticism that large
institutions have their best interests at
heart, Gen Z needs a personal connection
- an individual to both aspire to be and to
hold accountable — to form that bond of
trust so critical to charitable giving.

Copyright © 2021 sparks & honey. All rights reserved. 150


Gen Z needs their
values affirmed
rather than
constructed.
Charitable institutions spend huge amounts
of time and resources educating potential
donors about the issues they both care
about. Gen Z, however, is so strong and
present in their beliefs that showing you
understand their knowledge, not further
education, is key to winning their loyalty.
Copyright © 2021 sparks & honey. All rights reserved. 151
Technology made
Gen Z who they are
— now it’s making us
all a bit Gen Z, too.
Gen Z may be the first truly digitally
native generation, but the accelerated
adoption of a virtual-first mindset outside
this cohort stemming from the pandemic is
changing things. This means that today
that institutions that build winning digital
strategies with Gen Z can also use those
same strategies with the rest of the world
as well.
Copyright © 2021 sparks & honey. All rights reserved. 152
Operationalizing the Trends, Cultural Context and Implications of
This Gen-Z Analysis

INCLUSION PERSONALIZATION AFFIRMATION INNOVATION


Technology made Gen Z who
Inclusion is nothing short of For Gen Z, trust is far more Gen Z needs their values
they are — now it’s making us all
existential for Gen Z. personal and far less institutional. affirmed rather than constructed.
a bit Gen Z, too.

Experiment with established and


PLATFORMS Make certain all content on Develop content that feels not only Establish a footprint in the digital
emerging platforms to ensure that
Strategically selecting spaces organizations’ platforms has personalized, but personally spaces where Gen Z congregate and
your message and strategies are on
and technologies to connect with diverse representation and is engaging, using platforms to strategically reflect their aesthetics,
accessible for all viewers. Gen Z’s preferred and soon-to-be
a new Gen Z audience. leverage interactivity. dialogues and concerns.
preferred platforms.

Start relationships with Gen Z Ensure that Gen Z leaders and


Consider ways to bring Gen Zers Direct Gen Z leaders through
LEADERSHIP into decision-making spaces,
influencers to create a new, more members feel their values are
capstone projects where they can
Bringing in the perspectives of a personal face for your organization supported within the organization
ensuring those young voices reflect help the organization embrace richer
new generation of Gen Z leaders. and train them to proactively via conversations and reverse
the diversity of their generation. digital strategies.
advocate for your values. mentorship programs.

Include Gen Z social media


MESSAGING Incorporate the latest inclusive Shape influencer narratives that
Publish easy-to-share, short-form managers in the messaging
Adapting institutional language language around identity issues and speak to lived experience and
infographics and content that help ideation processes, bringing their
to meet Gen Z expectations lean into the important complexities personal moments to build both
Gen Z express your shared values. insights together with best-in-class
and behaviors. of intersectionality. audience engagement and trust.
data analysis tools.

Produce consistent content and


Recruit a diverse array of Gen Zers Prepare outreach templates and Overhaul institutional digital
READINESS for advisory positions to respond to action plans that can easily adapt to
outreach to show that, no matter the
strategy to ensure your organization
Preparing an organization to cultural moment, your organization
moments where equity comes Gen Z’s highly personal and fast- welcomes digital change instead of
begin outreach to Gen Zers. has an opinion that affirms Gen Z’s
culturally front and center. changing needs. pushing back against it.
world view and values.

Source: sparks & honey QTM

| Copyright © 2021 sparks & honey. All rights reserved. 153


+

Thank you.
FUTURE OF GIVING

THE POWER OF GIVING

Giving will play an extraordinary role in a world that is screaming From existential risks that remind us of the urgency to give, to
for change. In this world, businesses and leaders that fall short of innovations in technology that make it easier for us to be part of a
bringing giving into their DNA will be made obsolete. We’ve learned giving society, to the underlying shifts in human behaviors and new
that giving is an individual, collective, and business responsibility ways of thinking about activism, social impact and how we operate
and there is growing awareness that it is also part of being a citizen our businesses, the future of giving resonates in all of it.
of this planet. It is time to upgrade how we engage each other on the act of giving
When we build a preferred future that aligns universal interests of and realign purpose and business models against the fundamentals
every stakeholder in society, everyone stands to benefit. In this sense, that underpin the creation of a shared future.. The future of your
the future of giving is intrinsically linked with the future of business organization depends on it. And so do we.
and organizations of all kinds, not just philanthropies.

Copyright © 2021 sparks & honey. All rights reserved. 15 5


FUTURE OF GIVING

The Team

Anna Sofia Martin


Editorial Director & Author

Camilo La Cruz
Chief Strategy Officer

Terry Young
CEO & Founder
CREATIVE

Eric Kwan Tai Lau


Director of Visual Intelligence

Mohammed Nadeemuddin AGENCY & CONSULTANCY


Sr. Art Director
Paul Butler
Julian Acevedo Chief Operating Officer
Visual Designer
RESEARCH & CULTURAL INTELLIGENCE Kristin Cohen
Head of Business Development & Marketing
Robert Henzi
SVP, Strategy Jake Justice
Director, Human Intelligence
Annalie Killian
VP, Strategic Partnerships

Steve Goldberg
VP, Cultural Strategy

Latoya Robertson
Director, Cultural Strategy
Ben Grinspan
Director, Cultural Strategy

Brendan Shaughnessy
Sr. Cultural Strategist

Christian Kenoly
Jr. Cultural Strategist
Copyright © 2021 sparks & honey. All rights reserved. 15 6
FUTURE OF GIVING

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Copyright © 2021 sparks & honey. All rights reserved. 157
FUTURE OF GIVING

Download our reports on


reports.sparksandhoney.com

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FUTURE OF GIVING

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No parts of this publication may be reproduced,
copied, distributed or transmitted in any form
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© 2021 sparks & honey, LLC. All rights reserved.


No parts of this publication may be reproduced,
copied, distributed or transmitted in any form
without the permission of sparks & honey.

© 2021 sparks & honey, LLC. All rights reserved.

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