Harnessing AI in Nonprofits: Generative vs. Predictive AI

Chapter Leadership Brief 11.27.24

by Sarah TeDesco
Chief Operating Officer and Co-Owner of DonorSearch

Artificial intelligence (AI) is reshaping the nonprofit landscape, offering new tools to engage donors, streamline operations, and boost fundraising outcomes. Understanding two key AI types—generative and predictive—is essential for organizations eager to stay ahead. These technologies, while interconnected, serve unique purposes and open doors to innovative strategies.

Generative AI: Creating Content with a Human Touch

Generative AI is designed to produce original outputs, such as text, visuals, and even music, based on learned patterns. By analyzing vast datasets, these systems create content that feels human-crafted. Familiar examples include text generators like ChatGPT and visual tools like DALL-E.

Nonprofit Applications of Generative AI

For nonprofits, generative AI provides creative solutions to everyday challenges, including:

1. Campaign Storytelling:
        - ​​​Crafting compelling narratives for campaigns is critical. Generative AI can develop blog posts, social media updates, or donor stories that resonate with audiences.
2. Engaging Visuals:
        - Custom images for event invitations, infographics, or presentations can be quickly generated, saving time and resources.
3. Volunteer and Donor Outreach:
        - AI-generated thank-you letters, newsletters, or invitations can personalize communications, building stronger stakeholder relationships.
4. Dynamic Fundraising Materials
        - Drafting unique appeals for targeted campaigns is easier with AI tools that adapt messaging to fit different audiences or donation levels.

Generative AI allows organizations to scale their content production while maintaining a personal touch, keeping their mission front and center.

Predictive AI: Data-Driven Decision-Making

Predictive AI focuses on forecasting and recommendations by analyzing patterns in historical data. For nonprofits, it’s a powerful way to anticipate trends, understand donor behaviors, and optimize resources.

How Predictive AI Drives Nonprofit Strategy

Predictive AI offers nonprofits actionable insights, such as:

1. Donor Prioritization:
        - Identify donors most likely to give and predict optimal contribution levels, enabling focused outreach efforts.
2. Retention Analysis:
        - Spot early signs of donor disengagement and implement strategies to strengthen relationships before attrition occurs.
3. Program Impact Forecasting:
        - Evaluate how different initiatives might perform, helping nonprofits allocate resources to projects with the highest potential.
4. Optimizing Events:
        - Use predictive models to gauge attendance and donation likelihood at upcoming events, improving planning and ROI.

By turning data into actionable strategies, predictive AI empowers nonprofits to work smarter, not harder.

Integrating Generative and Predictive AI

The real magic happens when these two AI types work together. Generative AI can produce tailored messaging informed by predictive AI’s insights, creating a seamless synergy between creativity and strategy.

• Personalized Donor Communications: Predictive AI can identify donor preferences, while generative AI crafts personalized emails or appeals to align with those preferences.
• Tailored Marketing Campaigns: Combine predictive analytics on donor segments with generative AI to create unique content for each group.
• Optimized Resource Allocation: Use predictive insights to prioritize outreach while leveraging generative AI to create the necessary materials efficiently.

The integration of these tools enables nonprofits to maximize impact without overextending staff.

Ethical AI Use: Balancing Innovation with Responsibility

As with any technology, AI comes with ethical considerations. Nonprofits must remain vigilant about:

• Bias in Algorithms: Ensuring AI tools don’t perpetuate existing inequalities.
• Data Privacy: Safeguarding donor and beneficiary information.
• Transparency: Communicating AI’s role in donor and community engagement.

Developing policies for responsible AI use will protect nonprofit values while embracing innovation.

The Future of AI in Nonprofits

AI is not just a tool but a partner in achieving nonprofit goals. By combining the creative potential of generative AI with the analytical strength of predictive AI, organizations can unlock new levels of efficiency and donor engagement.

Visit donorsearch.net for more information about how to use AI in your fundraising.

Sarah TeDesco serves as the Chief Operating Officer and Co-Owner of DonorSearch, bringing over fifteen years of invaluable nonprofit expertise to the fundraising industry. Since 2007, she has worked to grow DonorSearch to become a nationally recognized and innovative technology leader in the nonprofit space. She continues to be inspired and motivated by nonprofits that work tirelessly to make the world a better place.

In her day-to-day role, Sarah focuses on company growth, operations, client success and marketing. Sarah has excelled and enjoyed partnering with organizations to craft strategic plans, introduce innovative products and systems, thought leadership and foster collaboration on transformative initiatives. Her commitment to the industry is driven by the opportunity to provide nonprofits with accurate and actionable information to increase funds. When it comes to the DonorSearch core values, two that drive her the most are Growth and Excellence. 

Sarah is a recognized speaker and educator for fundraising organizations such as AFP, Apra, AHP, The Giving Institute, Salesforce and more. She is a graduate of the University of Maryland where she earned her BA in English and Psychology, and MBA from the Robert H. Smith School of Business.

Favorite nonprofit: Nature Conservancy