While artificial intelligence (AI) is becoming more prevalent across society, its use growing especially quickly in the nonprofit sector. As of April 2024, 58% of 501(c)(3) organizations have incorporated AI into their digital communications, and 68% use it to analyze constituent data.

If your nonprofit hasn’t yet incorporated AI into its work, there is no time like the present to get started! AI can help your team with many aspects of fundraising and management—as long as you leverage it strategically. In this guide, we’ll discuss three tips for doing just that.

1. Understand the Different Types of AI Tools

As DonorSearch’s guide to AI for nonprofits explains, “Artificial intelligence (AI) is the ability of a machine (like a computer) to “think” like a human and perform tasks like recognizing patterns, processing information, drawing conclusions, and making recommendations.” 

However, various AI tools perform these functions differently and for different purposes. Let’s dive deeper into the two major types of AI solutions your organization can use: generative and predictive.

Generative AI

Generative AI tools use their information-processing capabilities to develop original content, which can take the form of text, images, audio, or video. Your nonprofit can leverage these tools when creating materials to fulfill various communication needs, such as:

  • Multi-channel marketing to spread the word about your mission digitally and in print.
  • Prospect reporting that informs your individualized outreach strategies to potential high-impact donors. 
  • Donor cultivation, where you build relationships with prospects and help them learn more about your organization.
  • Fundraising appeal creation so you can craft tailored requests that each donor will be receptive to.
  • Donor stewardship to show supporters you appreciate their contributions and want them to stay involved with your nonprofit long-term.

No matter your communications’ purpose, use generative AI to supplement human content creation, not replace it. Review and revise your solutions’ outputs to ensure they align with your nonprofit’s messaging standards and maintain the personal touch your donors value.

Predictive AI

“Predictive AI” describes solutions that analyze and model data, recognize patterns in that data, predict trends, and make recommendations based on their projections. Common use cases for these solutions in nonprofit work include:

  • Prospect modeling to glean deeper insights from prospect research data and prioritize outreach based on potential donors’ giving likelihood.
  • Engagement analytics to evaluate the performance of your marketing content and fundraising appeals so you can hone your strategies.
  • Sector-specific fundraising needs informed by unique data, such as managing alumni giving at universities or grateful patient programs for healthcare organizations.

Like with generative AI content creation, predictive AI tools should inform your team’s decision-making processes, not make decisions for you. Weigh these solutions’ recommendations alongside other data sources, and remember that you’re still the expert in your nonprofit as you determine the best course of action in any situation.

2. Integrate AI Into Existing Processes

Adopting new nonprofit technology, especially from an emerging field like nonprofit AI, might seem daunting. However, it becomes easier when you approach it from the angle of using nonprofit AI to enhance your existing processes rather than building a brand-new strategy with AI at the center.

When choosing AI solutions for your nonprofit, consider how they’ll integrate or work alongside your existing software, such as your:

  • Constituent relationship management (CRM) system for donor data management.
  • Prospect research database to identify and learn about potential major donors.
  • Fundraising campaign platforms to collect online donations, plan events, and execute other revenue-generating tasks more efficiently.
  • Marketing tools like your website builder, email marketing platform, and social media content calendar.

AI can open up opportunities for innovation in your donor cultivation, fundraising, and marketing strategies once your team is comfortable using it. However, this potential only exists if your organization adopts AI in the first place, so take that step first and then experiment more as your organization’s needs evolve.

3. Pledge to Use AI Responsibly

Because AI is relatively new and still evolving, there are real risks associated with misusing it, from data breaches to unintentional bias to noncompliance with legal requirements. But don’t let these risks stop your nonprofit from taking advantage of these tools! Your organization can prevent many of these risks and maximize these solutions’ benefits by committing to use AI responsibly.

To inform your nonprofit’s guidelines for leveraging AI properly, use the Responsible AI Framework (developed by the Fundraising.ai Collaborative) as your foundation. Its tenets include:

  • Privacy and security to protect personal and sensitive data.
  • Data ethics to ensure AI-processed information is accurate and collected with proper consent.
  • Inclusiveness to identify and address biases in AI outputs.
  • Accountability to produce verifiable, replicable results with AI.
  • Transparency and explainability to maintain trust with supporters and stakeholders.
  • Continuous learning to stay up-to-date on AI best practices and developments in the field.
  • Collaboration to learn from other organizations committed to responsible AI use.
  • Legal compliance to remain aware of and abide by applicable AI laws and regulations.
  • Social impact to maximize benefits and minimize harm to your nonprofit’s community.
  • Sustainability to be mindful of AI’s short- and long-term environmental impacts.

You should also be careful about the AI providers you work with. Look for trusted names in the space that are also committed to the Responsible AI Framework so their priorities align with yours. Additionally, Double the Donation recommends ensuring your solutions come with general security measures like encryption and that they are updated regularly to make it easier to adhere to your guidelines.

Nonprofit AI is here to stay, and although it’s still evolving, it’s no longer uncharted territory. Follow the tips above to create an implementation plan that considers what tools would be best for your organization, how to integrate them into your current strategy, and how to ensure responsible AI use. This way, you can mitigate any uncertainty or pushback at your organization and take advantage of this opportunity to bring your operations into the future.

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