2025: The Era of Beta Testing - Why Nonprofits Must Ready for Generation Beta
Source:https://mccrindle.com
In the nonprofit sector, strategic foresight isn't just advantageous—it's essential. At G-Lab Group, we have been observing a recent demographic shift. This shift will change how nonprofits like the Salvation Army engage, raise funds, and build community. 2025 marks the beginning of Generation Beta, and it's time for mission-driven organizations to start preparing.
What's the problem here? Many nonprofit organizations remain entangled in debates over Millennials versus Gen Z, focusing on their workplace habits, communication methods, and donation behaviors. However, the world has already moved two generations forward. This short-sightedness is among today's nonprofit sector's most critical strategic weaknesses.
The Generational Blind Spot: Still Treating Gen Z as "Kids"
Here's an unexpected fact for those leading nonprofits. Generation Z, frequently considered "kids," has reached 28.
Many of them are becoming parents. The oldest members of Gen Z are now having children. These children will be part of Generation Beta, born between 2025 and 2040.
While fundraising teams focus on Baby Boomers, senior executives consider engaging Millennials. We have all missed that Gen Z has grown up. They are not just entering the job market. They build careers, start families, and influence institutions based on their values.
Seven Generations Alive at Once:
An Unprecedented Historical Moment
For the first time in human history, we're witnessing seven distinct generations interacting simultaneously in society:
The Silent Generation (born before 1945)
Baby Boomers (1946-1964)
Generation X (1965-1980)
Millennials/Gen Y (1981-1996)
Generation Z (1997-2012)
Generation Alpha (2013-2024)
Generation Beta (2025-2040)
This generational convergence is genuinely unprecedented. Social researcher Mark McCrindle explains that increasing lifespans have created this unique phenomenon.
Previous generations didn't live long enough to see their great-great-grandchildren's generation come of age. People live longer now thanks to better healthcare, nutrition, and living conditions. This is a significant change compared to a hundred years ago.
Think about this: In 2025, the Silent Generation will be over 80 years old. Many will be in their 90s, and some will be over 100. They will be welcoming the first members of Generation Beta.
This 80-year gap between these generations is a first for society. Seven groups have vastly different experiences and views. They are all part of society at the same time.
McCrindle says, "The Silent Generation is now over 80. Baby boomers are in their 60s and 70s. Gen X is in their late 40s and 50s, with the oldest turning 60. Gen Y is in their 30s and early 40s.
Generation Z has the oldest turning 30 and the youngest at 16. Gen Alpha is 15 and under. Now we have Gen Beta. The year 2025 is essential for all these generations."
For nonprofits, this presents both an extraordinary challenge and an unprecedented opportunity. The traditional fundraising model that focused primarily on Baby Boomers and older generations worked when only 3-4 generations actively engaged in society. With seven generations, each having different ways to communicate, comfort with technology, values, and giving habits, organizations need a better engagement strategy. This strategy should be more complex and multi-layered.
This unprecedented generational diversity creates both challenges and opportunities for nonprofits. Generation Beta will make up about 16% of the world's population in the next ten years. This group will significantly change economies, cultures, and societies.
This seven-generation reality presents critical implications for mission-driven organizations:
Expanded Engagement Spectrum: Organizations must develop communications and engagement strategies that effectively reach people aged 8 to 88+. Each generation has distinct cultural touchpoints, digital fluency levels, and giving preferences.
Intergenerational Program Design: Service delivery and volunteer opportunities must simultaneously accommodate seven life stages. This may mean creating more flexible volunteer options for various physical capabilities, time commitments, and skill sets.
Building Long-Term Relationships: Generation Beta may live into the 22nd century. Nonprofits need to focus on building relationships over many years, not just on quarterly fundraising goals. Groups that create strong connections with young Alphas and Betas today may still gain their support in 80 years.
In his analysis, McCrindle emphasizes, "Understanding people and the generations is one great way to achieve that." No matter what generation you lead, serve, or market to, it is crucial to understand them. Knowing how they are changing is key to future success.
The Digital Native Evolution:
From Gen Z to Beta
Each successive generation has become increasingly integrated with technology:
Generation Z: The first true digital natives who view technology as extensions of themselves
Generation Alpha: Born into a world where AI and smart devices are commonplace
Generation Beta: Will experience a world where the digital and physical are seamlessly intertwined
For Generation Beta, artificial intelligence will not be a new technology. It will be as common as electricity to us. They'll grow up with personalized AI experiences in education, healthcare, and entertainment. This technological immersion will profoundly shape their expectations for interacting with organizations, including nonprofits.
Beyond Future Donors: A Paradigm Shift for Nonprofit Engagement
We need to reconsider how we view these younger generations. The biggest mistake nonprofits make is seeing Gen Z, Alpha, and Beta only as "future donors." They see them as a financial supporter of the mission when they have wealth in the future. This narrow view misses the great value these generations offer today:
As Advocates: Gen Z is already passionate about social justice issues, with nearly one-third actively involved in activism. They can amplify your mission through digital channels with an authenticity that paid marketing can't match.
As Volunteers: Digital natives can contribute specialized skills in content creation, social media management, and technology implementation that many organizations desperately need.
As Micro-Philanthropists, younger people can give even small amounts of money. They do this through subscription-based micro-donations. They also use peer-to-peer fundraising and cause-related buying.
Engaging these generations isn't about one-size-fits-all approaches—it's like trying to hit three moving targets simultaneously. Each generation requires a tailored strategy:
Generation Z: They're deeply concerned with authenticity and social justice. Climate change, equality, and systemic reform motivate their engagement. When properly channeled, their activist energy can become a game-changing force for nonprofits.
Generation Alpha: Growing up in a world driven by algorithms, Alphas use personalized learning apps and digital experiences. They expect personalization in all their lives, including how they interact with organizations. People will ignore generic messaging.
Generation Beta: These true "AI natives" will experience artificial intelligence as wholly integrated into every dimension of life—education, healthcare, transportation, and entertainment. For them, AI won't be a tool but an environmental constant, like the air they breathe.
2025 is a pivotal year because we're all entering this massive beta test together. Nonprofits, society as a whole—we're all trying to determine what this new world will look like. The complexity can be overwhelming, but that's precisely why organizations must start adapting now.
For mission-driven organizations, the message is clear: Don’t wait for Gen Beta to grow up. Don’t wait for Gen Alpha to become major donors. Engage with them now.
Build those relationships. Learn as you go. Embrace that beta-testing mindset of experimentation, learning, and adaptation.
The future of nonprofit engagement is being shaped right now, and the organizations willing to evolve will be the ones that thrive in this new seven-generation reality.
Why We Need to Engage Younger Generations Now
At G-Lab Group, we firmly believe that nonprofits must abandon the traditional mindset of waiting until generations amass wealth before engaging them. This approach ignores several critical factors:
1. Digital Literacy Shapes Brand Perceptions Early
Generation Z and Alpha are forming opinions about organizations long before they become donors. Their digital fluency means they research, evaluate, and form lasting impressions of brands through online interactions. When they reach financial independence, these impressions will be deeply entrenched.
2. Today's Advocates Are Tomorrow's Donors
Younger supporters may not have substantial financial resources today, but they offer something equally valuable: advocacy. Their social media influence and peer networks can amplify your mission in ways traditional marketing cannot. Investing in these relationships now will yield financial returns in the future.
3. Seven-Generation Strategic Planning
Forward-thinking organizations need to develop engagement strategies that resonate across all seven generations. This means creating different pathways for involvement that meet people where they are—whether that's through traditional mail for the Builder Generation or immersive digital experiences for Alphas and future Betas.
The Eighth Audience: AI Agents as Decision Influencers
Beyond the seven human generations, nonprofit strategists must now consider an entirely new audience segment: AI agents. As these technologies increasingly mediate human interactions with organizations—through search, recommendation systems, voice assistants, and autonomous decision-making tools—they become critical gatekeepers for your message.
For organizations working with Generation Beta, this will be particularly significant. These children will grow up not just using AI, but forming relationships with AI systems that help them discover, evaluate, and engage with causes and organizations. An AI agent might recommend volunteer opportunities to a teenager, help a young adult evaluate which nonprofits align with their values, or even autonomously manage recurring micro-donations on behalf of its user.
At G-Lab Group, we're just beginning to explore the profound implications of AI agents in nonprofit storytelling and decision-making pathways. This paradigm shift toward multi-agent engagement strategies (human and artificial) will be explored in greater depth in our upcoming book. For now, it's sufficient to recognize that the future of nonprofit engagement requires planning for eight audience segments, not seven.
Beta Testing Our Approach: Strategies for Future-Ready Nonprofits
"Beta Testing" carries a double meaning as we welcome Generation Beta. As software developers release beta versions to test and refine their products, nonprofit organizations must adopt an experimental mindset to prepare for this new generation.
Here are five approaches we recommend at G-Lab Group:
1. Embrace Transparency and Authenticity
Generation Z can spot inauthenticity immediately, and Generation Alpha and Beta will be even more discerning. Building trust with younger generations, who expect organizations to be accountable, is essential.
2. Develop Multi-Generational Messaging
Different generations respond to different communication styles. While maintaining a consistent core message, customize your delivery approach across channels. Baby Boomers may appreciate detailed impact reports, while Gen Z responds better to authentic social media content that showcases real stories.
3. Invest in Brand Building Now for Long-term Loyalty
Research shows that 93% of nonprofits believe a strong brand identity positively impacts donor engagement. Building a strong, recognizable brand that resonates with younger generations today will create the foundation for sustainable support as these generations grow into their giving potential.
4. Create Digital Engagement Ecosystems
Beyond just having a website or social media presence, develop comprehensive digital ecosystems that allow for personalized engagement. This might include interactive impact visualizations, gamified volunteer experiences, or AI-driven personalized content that speaks to individual interests.
Conclusion:
The Strategic Imperative of Generational
Foresight
As we welcome Generation Beta in 2025, nonprofit leaders face a critical strategic inflection point. We have two options: continue focusing exclusively on current major donors while treating younger generations as a future concern, or recognize that the future is already here, requiring immediate adaptation of our engagement models.
At G-Lab Group, our research shows that organizations that fail to engage with generations before accumulating wealth increasingly find themselves irrelevant when those generations reach the prime giving age. The pattern is clear: if you're not part of someone's life during their formative years, you're unlikely to become important to them once they have disposable income.
This seven-generation world we now inhabit isn't just a demographic curiosity—it's a fundamental reshaping of how organizations must function to remain sustainable. By 2040, Generation Beta will represent nearly one-sixth of the global population, wielding significant cultural and economic influence. Their unprecedented longevity means they'll be part of our donor ecosystem potentially into the 2120s.
The world isn't just testing a beta version of the next generation—it's testing our ability to expand our strategic thinking beyond the familiar generational boundaries that have defined nonprofit work for decades. Those who can look beyond the "Millennials vs. Gen Z" conversations to engage with Alphas and prepare for Betas will establish the foundations for institutional relevance that will endure for a century.
The question is no longer whether we should prepare for these demographic shifts but whether we have the vision to recognize that the future we're planning for is already arriving—one birth at a time.