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Gen Xers and Millennials are steadily becoming a powerful force in philanthropy. And while many of these younger donors say their charitable giving is inspired by their parents and grandparents, their approach to philanthropy is uniquely their own and distinctively modern. It’s philanthropy on their terms: entrepreneurial, personal, mission-driven, community-focused, data-centric, investment-minded, strategic and responsive.

Their approach to philanthropy, and their desire to ensure their giving is both meaningful and impactful, is why more and more younger donors are choosing to partner with the Community Foundation to help build a brighter tomorrow.

Generation X and Millennials are characteristically optimistic, interconnected and tech-savvy. They’re informed and aware, active and engaged in their communities, enthusiastic about the possibilities and motived to help drive positive social change.

They’re also busy. Like, crazy busy. Even amid a pandemic, these generations routinely count time as something they’re consistently short on due to the growing and changing demands of work, family and other commitments.

“As such, when it comes to their charitable giving, Gen Xers and Millennials want easy access to insights and information about how and where they can make a difference. They want technology that allows them to manage their giving anytime, from anywhere. And they want to ensure their charitable giving packs a punch — that it drives meaningful, measurable social impact,” said Mary Kolsrud, vice president for philanthropy.

As giving styles and motivations have changed and evolved through generations, Kolsrud said the Community Foundation continues to evolve as well.

“The reality is, giving has never been a ‘one-size-fits-all’ model; it’s a deeply personal act inspired by a variety of factors. That’s why we’re committed to working with our donors to create customized philanthropic strategies that align with their passions, values and their stage of life. And as a result, collectively, as a Foundation — as a community of donors — we’re making an even greater impact on the community we all call home.”

‘We can see the returns, and they’re huge’

Ryan and Emily Spellerberg represent the Gen X and Millennial generations. About three years ago the couple “made a decisive plan for what percentage of our income we were going to give,” Ryan said.

Seeking a partner to help simplify and maximize their giving, the Spellerbergs turned to the Community Foundation to establish a donor advised fund, a giving vehicle that “operates a lot like a checking or savings account just for charity,” Kolsrud said.

“Donor advised funds are popular because they allow an individual or family to make an up-front tax-deductible contribution. But they also offer the flexibility for the donor to recommend grants to their favorite charities from the fund when the time is right.”

For the Spellerbergs, having a donor advised fund allows them to provide both ongoing and needs-based support to the causes and organizations they care deeply about.

“We have some organizations that are near and dear to us that we give to regularly, like the American Cancer Society and the Humane Society, but we also like to be reactive to needs in the community,” Emily said.

After serving on a grantmaking committee for the Community Foundation last year, Emily said she was able to see first-hand the pandemic’s devastating impact on local nonprofits — from decreased donations to fewer volunteers to growing and changing demands for services.

“I realized there were things we could do that would really hit home for a lot of people in our community — things that also aligned with our giving goals,” she said. “So we were excited to help make an impact.”

Impact, indeed.

A recent grant from the Spellerberg’s donor advised fund to the Sioux Falls Hope Coalition, a nonprofit that provides free preschool for families in need, made it possible for more area kids to participate in the program.

For the Spellerbergs, the ability to manage their giving online, anytime, through the Foundation’s online donor portal, as well as having access to valuable insights has made the process of giving easy and efficient.

“I like the ability to go in and recommend grants (from our fund) online. We’ve set up some recurring grants, but we also like the flexibility to go in and recommend grants as needs arise,” Emily said.

We all find joy in giving. But the Spellerbergs said working with the Foundation provides a unique sense of fulfillment that comes from knowing they’re part of a growing community of donors, each united in giving of themselves for the greater good. Joining together, their giving is amplified for greater impact.

“In our day jobs, there’s a lot of focus on ‘return on investment’ — essentially, what are you getting out of what you’re putting in? For a lot of these giving opportunities, we can see the returns, and they’re huge — not only to the individuals served by these organizations, but also to our community over the long term,” Emily said.

‘Helping to care for one another’

For the Spellerbergs, the word ‘philanthropy’ represents far more than just charitable giving. It’s also about caring for one another through service and volunteerism — all of which are ways of investing in a brighter tomorrow for future generations.

“I think part of being in a community is helping to care for one another — however that makes sense for you as an individual,” Emily said. “We all have different skills and resources to give, so it’s making the most of what we have. Sioux Falls has been really good to us — we’re both in positions we love, working for organizations we really respect. So we’re always looking for how we can pay that forward and how we can help the future of a place we love and that we’ve called home for more than a decade.”

“It feels good to give — to know that you’re making an impact in your community,” Ryan said.

Support for Today and Tomorrow

In working with the Foundation to create their philanthropic strategy, donor advised funds and endowments support giving goals.

“Endowments are funds that are invested to provide returns that replenish the dollars distributed to charity each year. This ensures endowment funds are ‘forever funds,’ established to do good in our community for generations over and over,” Kolsrud said.

When it comes to giving back, the Spellerbergs have a message for everyone: Get started.

To learn more about how to create your own customized charitable giving strategy, contact us today at 605.336.7055.