Many 4-H professionals have overlooked the largest source of charitable funding in the United States--individual donors. Former members and volunteers are a likely source of donations. Many former members and volunteers fall into two main generational cohorts: Generation X and the Millennials. Understanding the characteristics of these two groups can improve your chances of turning them from prospective donors to actual donors

Anderson, Dennis M

Taylor, Gina M

English

Clemson University: TigerPrints

The Journal of Extension Volume 46 Number 4 Article 5 8-1-2008 Hard Times Ahead: Creating Alternative Revenue Streams for Extension Gina M. Taylor West Virginia State University, taylorgi@wvstateu.edu Dennis M. Anderson Marshall University, andersond@marshall.edu This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 4.0 License. Recommended Citation Taylor, G. M., & Anderson, D. M. (2008). Hard Times Ahead: Creating Alternative Revenue Streams for Extension. The Journal of Extension, 46(4), Article 5. https://tigerprints.clemson.edu/joe/vol46/iss4/5 This Feature Article is brought to you for free and open access by the Conferences at TigerPrints. It has been accepted for inclusion in The Journal of Extension by an authorized editor of TigerPrints. For more information, please contact kokeefe@clemson.edu. 	 JOEHOME JOURNAL GUIDELINES ABOUT	JOE CONTACT NATIONAL	JOB	BANKCurrent	Issues Back	IssuesAugust	2008	//	Volume	46	//	Number	4	//	Feature	Articles	//	4FEA3Hard	Times	Ahead:	Creating	Alternative	Revenue	Streams	forExtensionAbstractMany	4-H	professionals	have	overlooked	the	largest	source	of	charitable	funding	in	the	UnitedStates--individual	donors.	Former	members	and	volunteers	are	a	likely	source	of	donations.Many	former	members	and	volunteers	fall	into	two	main	generational	cohorts:	Generation	X	andthe	Millennials.	Understanding	the	characteristics	of	these	two	groups	can	improve	your	chancesof	turning	them	from	prospective	donors	to	actual	donors.	IntroductionAs	institutions	of	higher	education	struggle	to	maintain	state	appropriations,	it	becomes	moreimportant	to	develop	a	strategy	to	continue	programs	of	historical	importance--Extensionprograms--because	as	higher	education	funding	decreases,	so	does	funding	for	Extension.Various	program	areas	within	Extension,	such	as	4-H,	have	an	excellent	record	of	securing	grantsfor	specific	initiatives;	yet	as	the	country's	economic	conditions	worsen,	it	is	unlikely	that	grantsalone	will	be	sufficient	to	expand	or	even	maintain	programs.	Thus,	it	will	become	increasinglyessential	to	seek	funds	from	the	private	sector.	To	that	end,	Extension	specialists,	agents,	andother	professionals	should	consider	looking	to	Extension	programs'	dedicated	stakeholders	toshare	in	the	role	of	sustaining	programming	through	private	giving.Developing	New	Revenue	StreamsWith	a	focus	on	grant	writing	and	commercial	sales,	many	Extension	professionals	have	overlookedthe	largest	source	of	funding--individual	donors.	According	to	the	Giving	USA	Foundation's	report,Giving	USA	2005,	individual	donors	account	for	approximately	75.6%,	or	nearly	$188	billion,	of	allcharitable	giving.	According	to	C.	Ray	Clements,	Chair	of	the	American	Association	of	FundraisingCounsel,	70-80%	of	Americans	contribute	annually	to	at	least	one	charity	(O'Hearne	&	Wittman,2006).To	maximize	the	chances	of	making	individual	donors	of	former	members	and	current	programvolunteers,	it	is	essential	to	be	aware	of	the	characteristics	that	define	them.	Many	former	youthprogram	members	fall	into	two	main	generational	cohorts:	Generation	X	and	the	Millennials.	Thetwo	groups,	while	different	in	many	ways,	have	similar	characteristics	that	make	them	naturaldonors	for	Extension	programs.Understanding	Gen	Xers	and	MillennialsGina	M.	TaylorProgram	Leader,	4-H	Youth	EducationWest	Virginia	State	University	ExtensionInstitute,	West	Virginiataylorgi@wvstateu.eduDennis	M.	AndersonProfessor,	Leadership	StudiesMarshall	UniversitySouth	Charleston,	West	Virginiaandersond@marshall.eduGeneration	X	adults,	the	children	of	an	era	where	divorce	and	working	mothers	werecommonplace,	are	now	between	the	ages	of	25	and	45.	Generation	X	adults	grew	up	watchingtelevision	and	experienced	childhood	throughout	the	selfish	"me"	focused	eighties,	a	period	theydo	not	wish	to	see	repeated	(Jochim,	1997).	This	generation's	key	concerns	are	parenting	andongoing	education.	Because	their	parents	spent	little	time	with	them,	Gen	Xers	tend	to	put	friendsfirst.	In	financial	matters,	they	seek	involvement	in	managing	their	assets.According	to	Millennials	Rising:	The	Next	Great	Generation	(Strauss	&	Howe,	2000),	Millennialadults	are	now	between	the	ages	of	18	and	24.	According	to	Strauss	and	Howe,	the	Millennials	areoptimists,	90%	of	whom	describe	themselves	as	"happy,"	"confident,"	and	"positive."	They	supportsocial	causes	and	value	authenticity	and	integrity.	Although	they	want	very	much	to	succeed	inlife,	"integrity	trumps	success"	(Leo,	2003).	Millennials	have	a	great	interest	in	a	strong	marriageand	children.	In	fact,	in	a	survey	conducted	on	Millennials,	30%	said	that	they	want	three	or	morechildren	(Leo,	2003).How	can	Extension	professionals	use	the	general	characteristics	that	define	these	two	groups	toenlist	them	as	donors?	To	begin	with,	both	groups	value	children	and	parenting.	The	major	focus	of4-H	is	teaching	leadership,	citizenship,	and	life	skills	to	children.	Generation	X	adults	who	weremembers	of	the	4-H	program	understand	the	mission	of	4-H.	Fortunately,	much	of	the	groundworkthat	is	usually	required	to	orient	prospective	donors	has	already	occurred	with	this	group	throughtheir	prior	involvement	with	the	program.	Although	most	Millennials	are	not	old	enough	to	havechildren	who	are	of	age	to	be	members	of	the	4-H	Program,	many	still	have	emotional	ties	to	theprogram	themselves.What	are	some	of	the	challenges	that	come	with	engaging	these	two	groups	as	donors?	BecauseGeneration	X	adults	value	involvement	in	financial	matters,	they	will	want	to	be	involved	in	howthe	organization	will	use	their	donations.	They	may	be	more	likely	to	designate	their	donationsthan	to	allow	the	organization	to	use	the	money	for	operational	expenses.	Because	they	typicallyplace	a	high	value	on	friendships,	one	way	to	approach	them	to	contribute	would	be	to	have	afriend,	one	who	is	already	a	donor,	ask	them.Millennials	value	integrity,	so	it	is	crucial	to	show	them	that	the	organization	they	will	besupporting	is	responsible	enough	to	handle	the	rigors	of	fundraising.	A	lack	of	accountability	couldbe	fatal	for	fundraising	efforts	when	dealing	with	this	group.	Additionally,	Millennials	have	neverlived	in	a	world	without	technology.	By	the	time	they	were	in	junior	high	school,	they	were	alreadyusing	the	Internet.	Therefore,	organizations	must	have	high-tech	options	for	how	Millennials	canresearch	your	organization	and	its	activities	and	contribute	online.	They	are	interested	incontinuous	gifts	that	they	can	give	through	Electronic	Funds	Transfer	and	bank	draft.	Theytypically	use	debit	cards	rather	than	credit	cards.In	contrast	with	other	generations,	Millennials	have	a	more	"here	and	now"	perspective	on	financialmatters.	In	a	recent	survey	by	CIGNA	Retirement	and	Investment	Services,	more	than	50%	ofMillennials	say	that	their	top	financial	concern	is	"paying	everyday	expenses"	or	"saving	for	a	newhouse	and	car"	compared	with	Baby	Boomers,	whose	two	main	financial	concerns	are	saving	forretirement	and	paying	for	their	children's	education	(CIGNA,	2004).Where	should	Extension	professionals	begin	to	look	for	these	Generation	X	and	Millennial	donors?Rosso	(1991)	demonstrated	through	his	Concept	of	Ever-Widening	Circles	that	the	"energy	centerof	the	constituency"	is	strongest	closest	to	the	organization	and	that	the	energy	diminishes	as	thecircles	widen.	The	Figure	1	shows	that	former	participants	fall	into	the	third	circle.	However,current	volunteers	who	are	also	former	participants	would	fall	into	the	second	circle.	This	is	anexcellent	place	to	begin.	Current	volunteers	in	the	4-H	Program	who	are	also	former	participantsnot	only	have	emotional	ties	to	their	days	as	4-H	members,	but	they	have	enough	of	a	tie	that	theyremain	involved.	They	give	of	their	time,	so	they	are	also	likely	to	give	of	their	money.Figure	1.Rosso's	Concept	of	Ever-Widening	CirclesRosso,	1991Having	a	strong	plan	in	place	to	raise	the	needed	funds	is	vital	to	your	success.	Several	fundraisingmethods	would	yield	positive	results	in	the	quest	to	make	former	members	donors,	but	annualcampaigns	have	the	potential	to	generate	a	larger	portion	of	operating	expenses	each	year.Annual	CampaignsAn	annual	campaign	is	an	opportunity	to	cultivate	and	expand	relationships	to	support	thedevelopment	of	an	organization	in	a	personalized	way.	Annual	campaigns	can	range	from	largeand	time-consuming	to	scaled-down	and	short-term.	Keep	in	mind,	however,	that	the	more	timeyou	invest	in	this	method,	the	better	results	you	will	experience.To	begin	the	annual	campaign,	you	should	first	gain	the	buy-in	from	the	people	in	the	"energycenter"	or	inner	circle	of	your	constituency	(Rosso,	1991).	Those	in	the	inner	circle	are	your	leadvolunteers,	board	members,	advisory	members,	and	fellow	Extension	personnel.	It	is	crucial,	if	youwant	to	ask	people	for	money,	that	you	already	have	buy-in	from	those	who	are	closest	to	yourorganization.	In	addition,	it	will	be	easier	for	you	and	those	in	the	organization's	inner	circle	to	askothers	for	money	when	you	are	able	to	describe	the	gift	that	you	and	others	have	already	made.Next,	begin	to	identify	prospective	donors.	Have	the	first	line	of	donors,	your	closest	supporters,identify	other	people	who	are	likely	to	donate	to	your	organization.	The	best	prospects	are	familyand	friends	of	the	inner	circle	who	have	already	contributed	in	some	way	(not	necessarymonetarily)	and	people	who	believe	in	the	mission	of	the	organization.The	third	segment	of	the	annual	campaign	consists	of	a	kickoff	event,	the	public	start	of	yourcampaign.	You	can	invite	prospective	donors	to	come	to	this	celebration	and	learn	more	aboutyour	organization.	The	event	should	provide	opportunities	for	prospective	donors	to	mingle	withfrontline	donors.	If	space	and/or	funding	are	limited	for	this	event,	narrow	your	invitation	list	tothose	donors	who	might	make	a	significant	donation.	Once	you	have	sent	invitations	toprospective	donors,	have	current	donors	follow	up	with	phone	calls	to	reinforce	the	fact	that	youwould	like	to	have	them	attend	the	event.	The	more	personal	contact	prospective	donors	havewith	the	organization,	the	more	likely	they	are	to	contribute.Finally,	make	one-on-one	contact	with	the	prospective	donors.	These	personal	communications	area	way	to	follow	up	with	people	who	attended	your	event	but	did	not	donate.	In	addition,	there	aredonors	who	will	only	donate	when	asked	personally.There	are,	of	course,	other	vehicles	for	raising	funds	to	support	your	program,	such	as	capitalcampaigns,	special	events,	scholarships,	and	so	forth.	These	techniques,	however,	are	tailored	forspecific	circumstances	and	for	specific	causes.	The	capital	campaign,	for	example,	is	typically	usedto	raise	funds	for	three	specific	purposes:	to	build	a	new	building,	to	support	a	specific	project	likeresearch	on	childhood	diseases,	and	increase	a	particular	asset	like	a	scholarship	fund	orendowment.	Although	these	types	of	fundraising	campaigns	have	their	merits,	an	annual	campaigncan	provide	more	day-to-day	support	for	your	organization.How	should	you	proceed?	There	are	a	number	of	resources	available	that	can	assist	you	in	movingformer	4-H	members	and	current	volunteers	from	prospective	donors	to	actual	donors.	The	nextsection	describes	several	important	resources	that	you	can	use	to	get	started	with	your	fundraisingproject.Getting	Started--Available	ResourcesWhether	you	are	an	experienced	fundraiser	or	a	novice,	there	are	excellent	resources	available	toassist	you.	While	not	all	encompassing,	they	include:Education/TrainingA	number	of	institutions	offer	courses	that	cover	an	array	of	topics	related	to	philanthropy,	whichinclude	certificate	programs;	academic	degrees;	and	non-credit	seminars,	conferences,	andworkshops.	Among	the	most	well	known	is	the	Center	on	Philanthropy	at	Indiana	University<http://www.philanthropy.iupui.edu>.	Within	the	center	is	the	Fund	Raising	School,	which	offers	aCertificate	in	Fund	Raising	Management	that	includes	courses	on	Principles	and	Techniques	ofFundraising,	Planned	Giving:	Getting	the	Proper	Start,	Developing	Major	Gifts,	and	InterpersonalCommunication	for	Fundraising.	The	school	also	offers	individual	courses	on	topics	ranging	frommanaging	capital	campaigns	to	working	with	volunteer	boards.	Those	who	are	interested	inadvanced	academic	degrees	can	pursue	master's	degrees	and	a	doctor	of	philosophy	inphilanthropic	studies.	Another	source	for	seminars	is	the	Institute	for	Charitable	Giving<http://www.instituteforgiving.org>.SoftwareThere	are	several	excellent	software	programs	available	to	manage	a	fundraising	office.	In	varyingdegrees	of	sophistication	and	costs,	the	software	allows	you	to	build	and	maintain	donor	andprospect	databases,	create	customized	solicitation	mailings,	generate	reports,	manage	specialevents,	and	assist	with	Internet	campaigns.	The	programs	include	such	well-known	tools	as	DonorPerfect	<http://www.donorperfect.com>,	Razors	Edge	<http://www.razors-edge.biz>,	andGiftworks	<http://wwwmission.research.com>.	All	of	the	companies	offer	free	demonstration	CDs.It	is	highly	recommended	that	you	view	each	one	and	discuss	your	needs	with	a	representativefrom	the	company	prior	to	making	a	decision.Professional	AssociationsThere	are	two	major	professional	associations	for	fundraising	professionals:	The	Association	forFundraising	Professionals	(AFP)	<http://www.afpnet.org>	has	been	in	existence	for	more	than	40years	and	boasts	a	membership	of	approximately	27,000.	AFP	represents	a	broad	spectrum	ofcharitable	organizations	in	the	US,	Canada,	and	overseas.	The	other	is	the	Council	for	theAdvancement	and	Support	of	Education	(CASE)	<http://www.case.org>,	which	represents	morethan	3,200	institutions	of	higher	education.	Both	associations	serve	as	advocates	for	thefundraising	profession	in	general,	but	particularly	for	their	members.	They	also	offer	educationalprograms	and	encourage	research.	One	of	the	most	respected	certifications	is	the	Certified	FundRaising	Executive	offered	by	AFP.ConsultantsThe	Chronicle	of	Philanthropy's	Directory	of	Services	<http://www.philanthropy.com>	is	a	goodstarting	point	to	research	consultants.	Whether	your	organization	is	preparing	to	embark	on	acapital	campaign,	begin	a	major	gifts	program,	or	conduct	a	community	survey,	the	use	of	aconsultant	requires	careful	consideration.	The	old	cliché,	"It	depends	.	.	."	is	certainly	appropriate.It	depends	on	having	sufficient	resources	to	pay	for	such	services,	the	type	of	campaign	and	targetamount,	board	leadership,	allocation	of	staff	to	meet	and	work	with	a	consultant,	and	so	on.While	not	an	endorsement	by	the	authors,	among	the	array	of	consulting	firms	you	may	find	theseuseful	to	peruse:	Ahern	Communications	<http://www.aherncomm.com>;	Gonser,	Gerber,	Tinker,Stuhr	<http://www.ggts.com>;	Stephen	E.	Cramer	&	Associates	<http://www.cramer-assocs.com>;and	Graham	Pelton	Consulting,	Inc.	<http://www.grahampelton.com>.	The	Association	ofFundraising	Professionals	does	have	a	chapter	in	many	states,	and	that	may	be	a	good	startingpoint	to	identify	consultants	located	in	your	state	or	region.SummaryThe	human	drama	that	4-H	professionals	encounter	on	a	daily	basis	provides	multiple	stories	thatappeal	to	prospective	donors,	and	it	is	these	private-sector	funds	that	will	help	sustain	our	youthand	young	adult	programs.	As	is	the	case	with	all	non-profit	organizations,	it	is	essential	to	findyour	niche,	to	determine	what	makes	your	need	for	external	funds	more	special	than	someoneelse's,	to	identify	donors	who	will	empathize	with	your	case,	and,	above	else,	to	ask.	The	mostfrequent	reason	donors	do	not	contribute	is	simply	that	they	are	not	asked	to	give.ReferencesCIGNA.	(2004).	Benefits	of	401(k)	plans	may	be	lost	on	new	'millennial'	generation:	CIGNA	surveyfinds	401(k)s	fail	to	engage	America's	youngest	workers.	Company	News	on	Call.	Retrieved	April	8,2006	from	http://www.worksite.et/030304401kcigna.htmCleveland,	L.V.,	&	Thompson,	J.R.	(2007).	Extension	education	and	volunteer	service:	Assessingmotivation	and	action	[Electronic	version].	Retrieved	October	15,	2007	from:http://www.joe.org/joe/2007february/rb1p.shtmlGreene	E.	(2003).	Connecting	with	generation	Y	[Electronic	version].	Chronicle	of	Philanthropy,15:19.	Retrieved	April	7,	2006,	from	http://philanthropy.com/pcgi2-bin/printable.cgi?article=http://philanthropy.com/premium/articles/v15/i19/19003101.htmHowe	N.,	&	Strauss,	W.	(2000).	Millennials	rising:	The	next	great	generation.	New	York:	RandomHouse	Publishing.Jochim,	J.	(1997).	Generation	X	defies	definition	[Electronic	version].	Outpost.	Retrieved	April	8,2006,	from:	http://www.jour.unr.edu/outpost/specials/genx.overvwl1.htmlLeo,	J.	(2003).	Millennial	generation	stands	apart	from	X-ers	and	boomers.	Uexpress.com.Retrieved	April	8,	2006	from:	http://www.uexpress.com/printable/print.html?us_full_date=20031026&us_comic=jlNichols,	J.	(2004).	Attracting	boomers,	generation	Xers	and	GenNetters:	The	new	face	of	donors.Association	of	Fundraising	Professional	Fundraising	Day	2005	in	New	York.	Retrieved	April	7,	2006from:	http://www.frdny.org/handouts05/judithnichols,pdf#search=millennials%20donorsO'Hearne,	B.,	&	Wittman,	L.	(2005).	Giving	USA	reports	good	news	[Electronic	version].	Just	InTime,	171.	Retrieved	April	3,	2006	from:	http://www.unity.org/marketing/fax171.pdfRosso,	H.	(1991).	Achieving	excellence	in	fund	raising.	Fig.	4.1,	p.	31.	San	Francisco:	Jossey-BassPublishers.Copyright	©	by	Extension	Journal,	Inc.	ISSN	1077-5315.	Articles	appearing	in	the	Journal	become	the	property	of	theJournal.	 Single	 copies	 of	 articles	may	 be	 reproduced	 in	 electronic	 or	 print	 form	 for	 use	 in	 educational	 or	 trainingactivities.	Inclusion	of	articles	in	other	publications,	electronic	sources,	or	systematic	large-scale	distribution	may	bedone	only	with	prior	electronic	or	written	permission	of	the	Journal	Editorial	Office,	joe-ed@joe.org.If	you	have	difficulties	viewing	or	printing	this	page,	please	contact	JOE	Technical	Support©	Copyright	by	Extension	Journal,	Inc.	ISSN	1077-5315.	Copyright	Policy

Hard Times Ahead: Creating Alternative Revenue Streams for Extension

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Hard Times Ahead: Creating Alternative Revenue Streams for Extension

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