Unlocking AI for Nonprofits: Overcoming Challenges and Seizing Opportunities
Chapter Leadership Brief 10.18.24
By Mary Witrow
Content Marketing Manager, Kindsight
Many of us feel overwhelmed and out of the loop when it comes to the use of AI in our organizations. Targets are often unreasonable, and we feel overworked. AI has advanced so much in recent years that it seems to be an inevitable part of the evolution of fundraising.
So whether you are an employee trying to figure out how to be more productive (do more with less) or an Executive Director trying to ensure the security of your donor and organizational information, there are many hurdles to overcome along the way in your journey to using AI. In this blog, we will discuss the challenges facing us with AI in the nonprofit sector and the possible opportunities when using AI properly.
Challenges
Lack of AI Policies
The world of AI feels like uncharted territory. Most of us feel behind and don’t even know where to start. Because of this, many nonprofits lack formal AI policies, leading to inconsistent and potentially risky usage by staff. It is not uncommon for staff to use AI without their supervisor's knowledge. Using AI is not the issue (in fact, it is probably one of the most useful tools you can use to modernize your fundraising), but using it without the proper oversight and transparency IS a problem. When AI use is unaudited or not trackable, it can be very difficult to ensure it is used responsibly and in line with your values and policies.
This lack of oversight can lead to security vulnerabilities and ethical concerns. As you can expect, with the tools being so ubiquitous and accessible, the number of incidents will also likely increase.
Data Security and Privacy
Using AI, particularly open-source tools, raises data security and donor privacy concerns. Inadvertently exposing personally identifiable information (PII) during data transmission or storage in AI tools can have serious consequences for nonprofits. Organizations need to be clear about what information they are putting into AI tools and how the content generated is being audited.
For example, a staff member could use an open AI tool under a personal account and accidentally share private information. There is no way to know if there has been a breach and no way to monitor the content that the tool is providing to the staff member. Since the account is personal, all the content and institutional knowledge gathered in their account becomes inaccessible to the organization when that employee moves on.
Staff Anxiety and Training
The introduction of AI can create anxiety among fundraisers worried about their jobs being replaced. This is within the context of many nonprofit professionals being burnt out, overworked, and underpaid, all while fundraising goals continue to increase.
It's important to be transparent about your organization's view and use of AI with your staff. The truth is that AI's role is to augment, not replace, human skills. You have to have clear communication that these tools are there to support staff and relieve some of their workload. It’s important to return to the organizational goals, mission, and vision; you have to explain what technology can help your team accomplish within those parameters.
Furthermore, nonprofits must invest in ongoing staff training and development to ensure responsible and effective AI adoption. Everyone in every nonprofit organization needs to have foundational training on security, as well as advanced training for IT and fundraising professionals on AI tools.
Opportunities
Enhanced Operational Efficiency
Once you have a policy in place, it is critical to identify areas where AI can enhance your operations. AI can automate repetitive tasks, such as note-taking, report generation, and drafting content, freeing up fundraisers to focus on higher-level strategy and donor engagement.
Something to note: AI can play a part in a workflow, but it usually cannot accomplish the entirety of a workflow on its own. Remember that AI is not a magic genie. The human, lived and learned experience of team members can not be replaced by AI. But AI can take away work that they don’t want to do so that they can focus on the things only they can do.
For example, many meeting note tools can take minutes and assign tasks for you in meetings, allowing you to be fully present in the conversation.
Improved Scalability and Adaptability
AI tools can help nonprofits analyze data, segment donors, and personalize communications, enabling them to scale their fundraising efforts more effectively and adapt to changing conditions.
For example, if you are creating an outreach campaign, does a human need to do the first draft of the content? Or would it be more time efficient if AI built out the first draft (based on the information you give it) and then you could just edit? It is faster to have a draft written with a beginning, middle, and end and then go back in and revise for your brand and revise for your talking points than to start from a blank screen.
The next level of productivity is when AI enables you to create versions of that content for different segments. Then, the process can be scaled, building systems and workflows that allow you to grow with your organization's needs.
Of course, as mentioned before, it is important to know that you should not use AI-created content that has not been reviewed. The point is not to remove all human contact but to put the human into a role of editor instead of starting from scratch.
Stronger Donor Relationships
By leveraging AI insights, nonprofits can better understand donor preferences and tailor their engagement strategies accordingly, fostering deeper connections and increasing long-term support.
If you use technology to find data on your donors, the process is much faster and more thorough than if you did it on your own without support. You can easily bring data points in, verify, and have AI put together insights to give you a better, bigger view of your donor. If you have evidence of their giving history, their financial situation, their professional connections, plus YOUR knowledge, you can find ways to connect with them. You will understand how they might want to be spoken to, how often, and how much they may be willing to give.
The reality is that donors now expect personalization, and they expect you to know the changes that are happening in their lives. Being up-to-date lets you go into a conversation with clarity and confidence, and the donor will see how well-prepared you are.
Increased Transparency and Trust
Openly communicating about AI usage and involving stakeholders in developing AI policies can build trust and demonstrate a commitment to ethical and responsible AI practices.
In a recent research study by Cherian Koshy and Nathan Chappell, 1006 donors who had donated to a nonprofit organization in the last twelve months were asked a series of questions:
How important is it for you as a donor for organizations to be transparent about using AI?
- Very important: 57.4% (578 respondents)
- Somewhat important: 28.9% (291 respondents)
- Not very important: 8.6% (87 respondents)
- Not at all important: 5.1% (51 respondents)
The majority of donors want AI transparency from the nonprofit sector. A great place to start is to clearly explain your AI usage on your website, confirming that there is always human review of anything AI has created and showing evidence that it improves efficiency or impact for your organization. Another option is to establish a committee to oversee the ethical use of AI in your organization, conduct regular audits, and provide avenues for feedback.
Fundraising processes and methods have evolved over the years. In the not-so-distant past, many of us were using note cards stored in a filing cabinet or housing prospect lists on CD ROMs. Can a nonprofit do more now because it has a website and a CRM? Yes. We can have a greater impact today because of the advancements in technology we have adopted.
All in all, AI is not a magic solution but rather a tool that can enhance the work of nonprofit fundraisers. It’s not just about adding more tech; it's about using it to further your mission.
By carefully considering AI's challenges and opportunities, nonprofits can harness its power to create a more sustainable future.
Content is adapted from the webinar Securing the Future: AI Strategies for Sustainable Fundraising.
Mary Witrow is a Content Marketing Manager at Kindsight. She has a business degree and brings a multitude of experience in marketing, education, writing, and editing to her role. Mary is committed to producing content that serves and uplifts nonprofit organizations, and she has a genuine passion for making a positive impact in the nonprofit industry.