What is Modern Giving and why does it matter?

A lot has happened since our last blog post on Modern Giving.

We’ve had the chance to onboard a bunch of customers, facilitate tens of thousands of dollars of donations and partner with some truly inspiring organizations. This has allowed us to gain a level of insight that was previously unknown and we are excited to share our learnings.

Let’s dive right in!

Our philosophy is centered around three words: accessibility, transparency, and insightfulness. These are the core values that we have built our platform around. We continue to partner with organizations so that they can empower all donors, regardless of how deep their pockets are, to maximize the impact of their giving and the impact in their communities.

So, what sparked this movement?

The FinTech Boom

Over the past few years, you’ve probably felt the avalanche of apps in the market geared towards addressing the financial challenges facing individuals, especially younger generations looking for tech-forward, mobile solutions.

A quick glance at the current portfolio of fintech products such as Mint (mobile-based money manager and financial tracker), Venmo (digital wallet for payments), Acorns (investment platform for spare change), Stash (investment app for a curated selection of ETFs) and Robinhood (commission-free investment platform) shows that despite tackling different problems, a majority of these tech products share a common solution framework:

  • Mobility — making it possible to manage and budget finances quickly and on the go
  • Deep Personalization — allowing users to be more in control and informed of their own budget and spending decisions
  • Interactivity — engineering apps to be more fun, hands-on and engaging

This quick rise reflects an increasing proclivity for innovative, tech-focused solutions, especially among younger consumers. In fact, according to research, the share of millennials using mobile phone banking is expected to increase to 94% by 2019. But it’s not only younger community members using these services, these users are driving adoption among their parents.

Philanthropic Potential

Digging deeper into this new market, we find that ninety-two million millennials in the US will soon be in their “prime spending years”. They are expected to command $1.4 trillion in annual spending and inherit $30 trillion of assets – the largest intergenerational wealth transfer in history! Moreover, they stand as the largest generation in the workforce and will account for almost two-thirds of all income by 2025.

Coinciding with this is the trend of giving back to the community. Giving exceeded $400 billion in a single year for the first time during 2017, demonstrating our country’s strong commitment to philanthropy. On average, millennials are giving $481 per year and 63% are keen on giving to charities; this pattern is only likely to grow as spending power increases.

For employers and financial institutions, it seems indispensable to form early and long-lasting relationships through a suite of services and engagement tools.

Filling in the Gap

We looked at all of the financial accounts available in the market and wondered why there wasn't an equivalent for philanthropy. There are checking, savings, 401ks, IRAs, HSAs, brokerage accounts, why wasn't there an equivalent for charitable giving? A centralized, affordable and accessible experience for the everyday donor.

And that was our eureka moment! We wanted to marry the best of Fintech with a solution to empower modern donors to manage their giving.

Deeper Relationships Through Philanthropy

Pinkaloo’s Modern Giving account offers organizations a white-label platform to engage stakeholders in a personalized way, through philanthropy. For their customers and employees it is the best way to manage their charitable giving including unique discovery, social and budgeting capabilities to maximize their impact.

We’re working with purpose-driven organizations to put greater philanthropic power in the hands of their workforce and customers.

We believe that setting a vision around giving back to the community, fosters engagement and collaboration within companies and between companies and their local communities.

Share your thoughts and experiences with us!

We’d love to hear your feedback and discuss trends across the industry. For more great insights, follow what we’re thinking, doing and reading on Twitter, Facebook, and LinkedIn.