Founder of Laulau-During the UK's 2023 cost-of-living crisis, He launched the Hot Meal Challenge to raise hot meals for Londoners facing food poverty. Under the patronage of Lord Woolley of Woodford and in partnership with Sufra, this social fundraiser supported hundreds of families across London.Fabio Richter
In an era marked by economic challenges, the resilience of human generosity is more evident than ever. The charity and non-profit organizations (NGOs) market has seen incredible growth, reaching US$305.2 billion in 2023 from US$288.97 billion in 2022. And the projections are even more promising, with estimates of the market reaching US$369.21 billion by 2027. Notably, Generation Z, born between 1997 and 2012, has contributed increasingly to this philanthropic surge. Despite their relatively lesser financial resources, studies show that Gen Z's charitable contributions are growing, reflecting their commitment to social and environmental causes. Recent data reveals that Generation Z, though younger and with comparatively less wealth, contributes significantly to this trend. This growth, amidst a weakened global economy, rising prices, and geopolitical volatility, underscores a collective commitment to positive impact.
Concurrently, there is a surge in the utility and popularity of AI adoption worldwide. The convergence of these two trendsexpanding NGO market and AI technologiesholds immense potential, as philanthropy proactively leverages AI's innovative capabilities. Experts in the field, such as James Hodson, also CEO of AI for Good Foundation, suggest that AI can revolutionize fundraising and operational efficiency in philanthropy, creating more impact per dollar donated, as evident in Lifeforce, a Humanitarian Aid 2.0 initiative.
While much has been discussed regarding AI's economic impact, with estimations from PWC of up to US$15.7 trillion added to the global economy by 2030, its potential influence on humanitarian action still needs to be explored.
While AI's economic impact is well-documented, its potential in humanitarian sectors is just starting to be realized. Emerging technologies can drive further innovation in the philanthropic sector, benefiting charities through personalized donor outreach strategies, optimized resource allocation, and streamlined decision-making processes. For example, the American Red Cross has implemented AI algorithms to predict donation trends, enabling them to allocate resources more effectively during crises.
While AI's economic impact is well-documented, its potential in humanitarian sectors is just starting to be realized. AI can revolutionize philanthropy with personalized donor outreach, optimized resource allocation, and more efficient decision-making.
For instance, Save The Children Australia enhanced donor outreach with AI-powered predictions, using data segmentation and their CRM system for effective donor targeting. They ranked donation profiles to target specific donors effectively. Similarly, Greenpeace Australia Pacific leveraged machine learning techniques to improve donor retention through a churn propensity model. By assigning scores to previous donation histories, the charity identified donors to re-engage successfully. Furthermore, SwissFoundations highlights the unexplored potential of AI in donor matching, reporting, impact evaluation, and increasing transparency and accountability within philanthropic organizations. These case studies illustrate how AI can provide actionable insights into donor behavior, leading to more targeted and successful fundraising strategies.
Gen Z is uniquely positioned to advance charitable work with their digital fluency and social media savviness. As digital natives, Gen Z brings a unique perspective to philanthropy. In addition to AI, the untapped potential of Gen Z, born between 1997 and 2012, can drive advancements in charitable work through new technologies. As the world's first generation of authentic digital natives, Their comfort with technology and social media paves the way for innovative approaches to charitable giving.
The intersection of AI and Gen Z presents a unique opportunity to shape the future of philanthropy. As these two forces continue to converge, the possibilities for innovation and positive impact are boundless. Research indicates that Gen Z donors prefer digital platforms for charitable engagement and are more likely to support causes that align with their values, emphasizing the need for NGOs to adapt to these preferences. This generation is more than just digitally competent; they are socially conscious. According to a study by McKinsey, 70% of Gen Z prioritize social impact in their spending and charitable giving, indicating a shift towards more conscientious consumerism.
Dubious stereotypes often dismiss Gen Z as a generation of self-absorbed and distractible youth, seemingly trapped by the addictive allure of social media and limited in their ability to appreciate the world beyond their personal experiences. However, according to a Forbes article in 2022, members of Gen Z are defying these expectations and emerging as the next generation of charitable donors, potentially surpassing their older counterparts in their willingness to support philanthropic causes. Their motivations stem from a deep sense of conviction.
Gen Z distinguishes itself as a charitable demographic and takes the lead in its chosen advocacies, spearheading digitally driven efforts to address philanthropic causes. The Hot Meal Challenge is a prime example of how Gen Z's digital savviness can be harnessed for philanthropic efforts. It also exemplifies Gen Z's philanthropic innovation, addressing food insecurity in the UK. Hot Meal Challenge is a viral fundraising campaign aimed at tackling the United Kingdom's pervasive cost-of-living crisis by providing hot meals to food-insecure households. Collaborating with Sufra, a prominent London-based food poverty charity, Gen Z members nominate each other via an app to donate hot meals.
Fabio Richter, the founder of the Hot Meal Challenge, firmly believes that philanthropy can drive meaningful global change, especially when harnessed with the power of technology. He states, "Through strategic giving and thoughtful investments, philanthropy can catalyze positive transformations in society. To fully unlock its potential, it is crucial to leverage technology, invest in local capacity-building, and collaborate with policymakers to enact long-term structural change."
Fabio emphasizes that Gen Z represents a highly promising donor market with which charities and non-governmental organizations (NGOs) should actively engage. "Surprisingly, non-profits often overlook generational cohorts like Gen Z and Millennials. While they may have less purchasing power compared to older generations, they outperform them in terms of annualized giving rates as a percentage of disposable income," he explains. "To effectively connect with younger generations, nonprofits must understand them from multiple dimensionsdemographically, behaviorally, and psychographically." This viral campaign brought widespread attention to food insecurity issues in the UK, demonstrating the power of social media in driving social change.
Gen Z challenges the prevailing stereotypes by actively contributing to philanthropic endeavors. Their digital savvy and deep commitment to causes make them a force to be reckoned with. Nonprofits and organizations should recognize the untapped potential of this emerging market and develop comprehensive strategies to engage and collaborate with Gen Z effectively. Fabio Richter, the founder, stated, "The success of this initiative is a testament to Gen Z's commitment to social change, harnessed through technology." Richter's approach in the Hot Meal Challenge exemplifies how combining technology with a deep understanding of Gen Z's communication styles can lead to successful philanthropic campaigns.
While AI offers numerous benefits, it also presents new challenges in terms of ethics and privacy. Balancing these aspects is crucial for sustainable growth in philanthropy. As AI technology holds immense promise in revolutionizing humanitarian work, advocates and supporters must remain vigilant about the inherent risks associated with emerging technologies. Managing the potential systemic risks posed by training AI systems, addressing the challenges of predictive decision-making, and ensuring transparency are all paramount. Fabio, an expert in the field, highlights the importance of preventing AI systems from perpetuating and exacerbating structural biases inherent in data.
When deployed carefully and strategically, AI can be an extraordinary catalyst for transforming humanitarian efforts, regardless of their humble origins. Pioneering digital philanthropic initiatives such as the Hot Meal Challenge are already reshaping the industry landscape and paving the way for tangible real-world impact. Speaking at the initiative's launch, Lord Woolley of Woodford emphasized its transformative potential in fighting poverty and restoring human dignity.
It's vital for organizations to establish ethical guidelines for AI use, ensuring that these technologies are used responsibly and transparently, with a focus on enhancing rather than replacing human decision-making in philanthropy. Ethical considerations, like data privacy and bias in AI algorithms, are crucial. Measures such as transparent AI development processes and regular ethical audits are essential to ensure these tools serve the greater good without unintended consequences. It is critical to remember that integrating AI and philanthropy must be rooted in fundamental human values underpinning charitable endeavors: service, compassion, and a steadfast commitment to envisioning a better future. As Lord Woolley aptly stated, this endeavor is not just about individual gain but collective action and collaboration in serving others.
The collaboration between AI and philanthropy has the power to drive significant change. Still, it must always be guided by a deep understanding of human values and a shared vision for a brighter tomorrow.
The intersection of AI and Gen Z presents a unique opportunity to shape the future of philanthropy. The convergence of AI, Gen Z values, and philanthropy is a powerful combination with the potential to reshape humanitarian efforts.
As these complementary forces gain momentum, upholding ethical integrity and managing risks becomes paramount to unlocking innovative potential. By embracing these trends, NGOs can unlock new potentials for impact and efficiency.
This approach promises technological advancement and a more compassionate and efficient philanthropic sector.
Moving forward, it is essential for philanthropic organizations to stay attuned to these technological advancements and generational shifts, ensuring that their strategies remain relevant and effective in the evolving landscape of philanthropy. The synergistic potential of this unique convergence still needs to be explored. This approach promises technological advancement and a more compassionate and efficient philanthropic sector. With courage, care, and conviction, AI and Gen Z have the opportunity to shape the course of philanthropy for the future and the lasting ascent of humanity.
Mr. Minevich is a highly regarded and trusted Digital Cognitive Strategist, Artificial Intelligence expert, Venture Capitalist, and the principal founder of Going Global Ventures. Mark collaborates and advises large global enterprises both in the US and Japan (Hitachi), and is the official AI and Future of Work Advisor to the Boston Consulting Group. Currently, he serves as the strategic advisor and Global ambassador to the CEO and Chairman of New York based IPsoft Inc.
Mark holds the role of senior fellow as part of the U.S. Council on Competitiveness in Washington, D.C., and maintains a position as senior adviser on Global Innovation and Technology to the United Nations Office of Project Services (UNOPS). He is an appointed member of the G20/B20s Digital Task Force, supplementing the group with expert knowledge on digitization, advanced autonomous systems, and the future of AI.
Mark is also the founder and Co-Chair of the World Artificial Intelligence Organization and AI Pioneers based in New York, and was appointed as the Global Digital Ambassador to the World Assessment Council in early 2020. He is the Strategic Advisor to SwissCognitive - "independent" Global AI think-tank in Switzerland, which aims to share, connect, and unlock the fullest potential of Artificial Intelligence.
Mark also advises several venture capital groups. He acts as a Fund Adviser to Bootstrap Labs based in San Francisco: a pioneer in the realm of VC funds focused on applied AI, carrying with it a mature fund and portfolio of 24 applied AI companies. Mark is also an Advisor to the AI Capital Venture Fund based in Colorado, which is a dedicated venture and private equity fund geared towards AI companies in the late-seed to growth-stage maturity level.
Mark is also a trusted Adviser and Entrepreneur in Residence for Hanaco Ventures, a global venture fund that focuses on late-stage, pre-IPO Israeli and US companies powered by bold, visionary, and passionate minds. Prior to this position, Mark was the Vice Chair of Ventures and External Affairs, as well as CTO at the Comtrade Group, an international technology conglomerate. He also served as the CTO and Strategy Executive at IBM, and held other management, technology, and strategy roles that entailed formulating investment tactics for Venture Capital Incubation programs.
Mark is also involved in media and journalism, and contributes to a number of publications, such as Forbes.com. His knowledge has been cited and his name has been featured in articles on an international scale.
Forbes named Mark one of the Leaders to Watch in 2017. He has received the Albert Einstein Award for Outstanding Achievement and the World Trade Leadership Award from the World Trade Centers and World Trade Centers Association. Mark has served as a venture partner with GVA Capital in Silicon Valley, advising the fund on AI startups. He has also served as venture advisor to Global Emerging Markets, an alternative investment group that manages a diverse set of investment vehicles. Mark was also involved with Research Board, a Gartner company and international think-tank advising CIOs at some of the worlds largest corporations, such as: Deutsche Bank, BTM Corporation, Geotek Communications, Qwest Communications, Comcast, and USWEB/CKS.
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AI And Generation Z: Pioneering A New Era Of Philanthropy - Forbes
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