AI and Your Tech Stack: What Your Nonprofit Needs to Know

On a larger scale, AI is a revolutionary tool shaping how organizations of all kinds operate, including nonprofits. From automating menial tasks to helping uncover rich insights in donor data, AI can dramatically improve how your nonprofit fulfills its mission. 

However, there are some key things you need to know before weaving AI into your nonprofit’s digital strategy.

What the research says…

Let’s begin by looking at some eye-opening findings about nonprofits and AI usage: 

• Nonprofits are jumping into the world of AI with both feet. According to NonProfit PRO, 90% of nonprofit organizations use AI for one or more engagement or marketing use cases. In addition, nonprofits are adopting AI faster than their for-profit counterparts—58% of nonprofits use AI with their communications tools compared to just 47% of B2C for-profit organizations. 
• Nonprofits are using AI in a variety of ways. The top three reasons nonprofits use AI are for internal productivity (35%), marketing and communications (31%), and development and fundraising (24%). However, many nonprofit professionals are noticing that AI is better for some processes than others. For example, 82% of fundraisers are comfortable using AI for donor research, while 63% are unsure about leveraging AI for donor communications, as the messages these tools produce can feel less personal. 
• Despite the number of organizations embracing AI, many nonprofits and their supporters still have concerns about leveraging this technology. According to KPMG, 61% of people are wary about trusting AI systems. More specifically, donors’ top concerns with nonprofits using AI are privacy and data security (60%) and a lack of a personal touch (60%). 

Now that you know the current state of nonprofit AI usage, let’s dive into a few key points about leveraging AI effectively. 

There are different types of AI. 

According to DonorSearch, there are two core types of AI nonprofit organizations should know, and they can both help streamline and improve your operations.  

1. Generative AI uses machine learning capabilities to create content such as text, images, and more. A prime example of this type of AI is ChatGPT. Another example is Canva, which offers an AI tool for creating images and graphics.   
2. Predictive AI uses data and modeling to make predictions, identify trends, and provide actionable recommendations. For instance, if you use a prospect research tool with AI capabilities, you can harness existing information about your donors or prospects to predict future giving behaviors and receive recommended next steps for your fundraising team. 

A strong AI strategy includes both generative and predictive AI. For example, you may leverage AI for grant writing. Predictive tools can help you identify worthwhile grant opportunities to pursue, and generative AI can help you prepare a strong proposal.

Many tools already have an AI element built in. 

While shiny, new AI tools (think ChatGPT) have taken center stage over the last few years, it’s important to note that many nonprofit software solutions already have an AI element built into them. 

For example, Salesforce’s newest primary offering for nonprofits, Nonprofit Cloud, leverages AI to help create personalized gift proposals, generate reports on program performance, provide overviews of key major donor information, and more. 

In addition, your current software may integrate with AI-powered tools to unify your technology stack and allow data to flow between solutions. For instance, Pairsoft’s document management solutions can integrate with Blackbaud tools to allow for improved fundraising outcomes. To take advantage of integrations like this, you may find it helpful to work with a nonprofit technology expert. 

Certain risks come with using AI. 

Though AI brings many benefits, there are also risks to be aware of. 

Don’t let these risks scare you away. Instead, be aware of the following common challenges so you can mitigate them: 

• Data privacy and security: AI systems require access to large amounts of data, and depending on your mission or activities, that may include sensitive information. Misuse or breaches of this information could negatively impact the trust between you and your community.  
  • How to mitigate this risk: Ensure you hold your organization and the AI tools it uses to the highest data security standards.
• Transparency and consent: Along the same lines, if supporters or beneficiaries don’t know how you’re using AI or don’t have the opportunity to consent to their data being used, your relationships with them may suffer.
  • How to mitigate this risk: Communicate with your community about how your organization uses AI and empower people to opt out of having their data used. 
• Bias and discrimination: If AI algorithms are trained on biased datasets, they will perpetuate bias and discrimination. This can harm efforts to allocate resources, hire, or deliver services in a fair manner. 
  • How to mitigate this risk: Ensure the data your organization uses is as accurate, representative, and diverse as possible.
• Dependence on technology: Over-reliance on AI tools can make your organization vulnerable to system failures. Additionally, exclusively using AI to make decisions can lead to errors or less-than-optimal outcomes you could avoid by having a human weigh in.
  • How to mitigate this risk: Ensure that you maintain, backup, and update your AI tools and always let human team members have a final say in critical decisions and processes. 

Additionally, understand that AI currently has few regulations. In the U.S. in particular, there is no comprehensive federal legislation guiding AI usage, only a mix of local laws and industry guidelines. As you use AI, pay attention to the evolving legal landscape to ensure the tools and processes you use are aligned with best practices that promote fairness and equity. 

There are two keys to using AI successfully in your organization. 

AI is the new technological frontier for nonprofits, and your team may feel uneasy as they seek to balance the pros and cons of using AI in their day-to-day work. 

To set yourself up for success, remember these two key best practices: 

1. Do your research: Learn about the AI tools you’re using or want to use and how they can help your nonprofit and align with your organizational values. You may find it helpful to speak with colleagues in the nonprofit space to see how they’re making the most of AI. Additionally, keep tabs on AI news to be aware of new developments and regulations.  
2. Commit to using AI ethically: Many AI concerns can be mitigated if your team is committed to using AI in an ethical, fair, and purposeful way. If you’re looking for a good starting point for discussing AI ethics with your team, consider using the Fundraising.AI collaborative’s responsible AI framework.

AI is a powerful form of technology with exciting potential for nonprofit use cases. As you learn more about the world of AI and how organizations like yours use it, be mindful of how it fits into your operations and affects your community. And, if you need help implementing AI solutions for your nonprofit, be sure to reach out to an experienced nonprofit technology consulting firm.