The Pulse: Gen Z, State Budget Shortfalls, Tackling Climate Change

By Andy Carroll, Exponent Philanthropy

I regularly explore trends influencing philanthropy by spotlighting articles, reports, and essays in the media. I cast a wide net, venturing beyond philanthropy and traditional topics to consider a variety of ideas, innovations, debates, and critiques. Read previous posts in the series   

Generation Z Stands Out in Generosity, Tech Savvy, Self-Reliance

Research on youth in America indicates that young people between 7 and 17 may be the most philanthropic and civically engaged of all current generations, according to a Chronicle of Philanthropy article by Brennen Jensen (subscription only). Dubbed “Generation Z,” these young people are socially aware, optimistic, generous—and uniquely connected technologically, having used mobile devices almost since birth. One study by marketing agency Deep Focus reports that “Nearly 70 percent of people under 20 have volunteered, with nearly half doing so at least once a month… More than a third of those surveyed had donated their own money to a cause, while more than one in four had helped raise money.”

“Observers of the generation say that growing up with Google at their fingertips has engendered self-reliance and lessened a dependence on parents, other adults, or individual institutions for information and guidance. ’With their ready access to information, they can form their own opinions,’ says Jamie Gut­fruend, chief marketing officer at Deep Focus. ’This means when it comes to philanthropy, kids of this generation want brands and institutions to talk to them directly. They want a seat at the table as independent thinkers with their own perspectives. They are more sophisticated in that way than earlier generations.’”

Nearly Half of States Expect to Confront Big Budget Gaps 

Although the U.S. economy is growing, a different story is emerging among many states: significant budget gaps. “An Associated Press analysis of statehouse finances around the country shows that at least 22 states project shortfalls for the coming fiscal year. The deficits recall recession-era anxiety about plunging tax revenue and deep cuts to education, social services and other government-funded programs. The forces at work today are somewhat different than when the recession took hold in 2008. In some states, revenue growth has been stagnant, missing projections and making it difficult to keep pace with expanding populations and rising costs for health care and education. Other states have been hurt by a steep decline in oil prices or seen their efforts to promote growth through tax cuts fail to work as anticipated.” Kansas, for example, may end the school year early.

With Public Funding Cuts, Costs to the Public Will Only Get Bigger, Say Illinois Nonprofit Leaders 

The Chicago Tribune explores the impact of the state’s current $1.6 billion shortfall and projected future shortfalls on services provided to low-income people. Leaders interviewed point out that nonprofits lack the resources to make up for public funding cuts. Cutting essential services will only intensify and expand needs, they say, creating even bigger costs that will be borne in coming years by taxpayers, communities, and the state.

“The Rauner administration projects a $6 billion to $7 billion shortfall in the 2016 state budget. With larger cuts looming for the 2016 fiscal year, which begins July 1, charities are ramping up advocacy and fundraising — and emphasizing that philanthropy is not enough. ‘As generous as our donors are, there’s no way they can make up that difference,’ said Dick Malone, president and CEO of YMCA of Metro Chicago. ‘The philanthropic community doesn’t have the financial capacity to be the social safety net,’ said Maria Whelan, president and CEO of Illinois Action for Children. Sara Slaughter, director of the education program at the McCormick Foundation, said her group is directing its resources to organizations that are best able to communicate to legislators about the long-term impacts of budget cuts and how to implement them in the least harmful way.”

“’Cutting the (YMCA Chicago teen) program could be costlier to the state in the long run than the money saved short-term if more youth end up in drug rehab or the court system as a result,’ Malone said. ‘It will come back in a much larger way later in the lives of these kids,’ he said.”

A Call by Two Foundation Leaders: Join Us to Address Climate Change

Larry Kramer, president of the William and Flora Hewlett Foundation, and Carol Larson, president of the David and Lucile Packard Foundation, are calling upon every foundation to join them in addressing global climate change, an issue they believe “threatens the long-term success of every other effort foundations support.” Kramer and Larson write, “Climate change isn’t just an environmental problem. It is an everything problem. Its effects touch all cultures, all incomes, and all geographies. …The Hewlett Foundation and Packard Foundation have made commitments to the climate fight that far exceed any other pledges in our organizations’ histories. We have done so because the business values that motivated our founders, Bill Hewlett and David Packard, still underpin our approach: partnership, respect for science, tolerance for risk, and a willingness to make big bets on problems worth solving.”

“Leadership matters in this fight. We hope more foundations, whatever their grant-making priority…will examine how climate change could impact their missions. Talk to your grantees about their climate concerns. Seek out allies for whom climate mitigation is a focus, and look for ways to learn from them. Attend climate-focused gatherings that might not fall neatly into your current program priorities. Engage your board. Ask hard questions. …It is time to act in whatever ways we can. It is time to get going.”

To Tackle Climate Change, Use Your Power to Influence Peers

Writing in Salon, author and educator Per Espen Stoknes calls on us to complement our advocacy work by taking local, individual action to address climate change, and serve as role models for our peers. He urges us to tell our friends, families, and colleagues why we believe climate change is important and urgent, and what we are doing about it. “The most credible spokespeople for an idea or brand are peers,” he writes. “In many situations, comparison with peers is an emotional, evolutionary inner force that is stronger than rational self-interest. …So if we stop communicating our worst behaviors (how much energy we consume, how big a house we build, how many miles we fly) and instead model our best behaviors…change can happen, and happen faster. We can start social cascade effects.”

“The more people see happy others conserve energy, install solar rooftops, recycle, shop green, and drive electric cars, the more they are inclined to support ambitious climate policies on local, state, and national levels. By seeing solutions in action, their feelings of helplessness and of being overwhelmed by global climate facts are eased. …Demand for clearer political leadership grows from the bottom up: ‘We’re doing something about it; why aren’t the politicians?’”

Among specific actions Stoknes recommends to harness positive peer pressure is introducing the topic of climate in one’s existing networks, such as churches, sports teams, civic and neighborhood groups, book clubs, and associations.

Andy-CarrollSenior Program Director Andy Carroll writes resources, designs workshops, and facilitates seminars for funders. Andy also dedicates a significant portion of his time to managing our Leadership Initiative that defines, validates, nurtures, and celebrates the many ways philanthropists lead. Andy has 25 years of experience in nonprofit organizations, and he enjoys talking with funders about their questions, interests, passions, and plans for making a difference. Follow Andy on Twitter @andycarrollexpo.

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