AI for Nonprofits: What You Need to Know About Fundraising AI May 23, 2024 by Paul Keogan Thinking in: CRM/AMS, Strategy, Support Tips AI is certainly the hottest topic in conversations about technology this year. “Generative AI” tools like ChatGPT draw a lot of attention, for better or for worse – but AI technology goes beyond that. More and more nonprofit CRMs are adding AI features intended to assist development teams with enhanced data. Are the newest fundraising AI tools going to skyrocket your efforts? Is the current technology worth investing in? Let’s take a look at what AI for nonprofits means, halfway through this banner year. What kind of AI? In this context, we’re talking about AI tools that can analyze data and attempt to predict certain kinds of behavior. When you feed the AI engine a set of information about your constituents’ giving history and engagement with your organization, it makes suggestions about who to target and what kind of messaging to use, guiding you to focus your efforts on the most valuable prospects. At this point, most CRMs already have some version of this in place, and you can expect that almost every system will have some AI features by the end of 2025. What organizations should consider AI tools? Whether driven by AI or not, moves management is still the name of the game in fundraising. The better information you have on your donors and prospects (i.e. the people you should be “moving” and “managing”), the less helpful the technology will be. Organizations who already have a good handle on donor cultivation processes and data may not find the current features very helpful. Therefore, it doesn’t need to be a high priority when looking at new technology. However, for organizations that are less mature, it can be helpful for gaining insights. If you have a smaller team with limited time, AI features can help drive focus on smaller groups of donors who are more likely to take action, keeping time and energy in the most productive place. For those who need some help with task management, AI features can help create a task list. If you are struggling and looking at a change in your database, AI features are something to consider. AI is not a replacement for smart people. AI is great for informing decisions, and there are ways it can help you save time, but it’s not a replacement for human discretion. It’s the hints along the way. You have to know how the AI tool works and understand how it’s generating suggestions, not just follow along blindly. As a fundraiser, you are the best judge of how and when to reach out to your donors. Their relationship is with you, not your AI. You know the larger picture of your goals and what works best for your organization too. The AI only knows what, statistically, is most relevant based on the data it has. Human fundraisers still know what best drives results for the organization. AI technology is changing rapidly. As these new tools change and evolve, we’ll likely see continual improvements and enhancements in a short time period. Right now, developers of AI for nonprofits generally “hard code” the parameters for what data the tools can consider, which means you can’t change them to match the nuances of your work. In the coming months or year, we’ll see an increased ability to “personalize” these systems to better match your organization’s needs. Today the systems that allow this customization are still in the early stages, and not the most user-friendly. If you’re looking for a new system, you’ll hear about AI fundraising features – vendors always want to tout their bells and whistles on sales calls, and AI is the hottest topic of the moment. Just make sure to take those demos with a grain of salt. When it comes to what AI for nonprofits can do, the technology is in the immature phase. It’s worth paying attention to and understanding what the tools do in the system(s) you already have. It may inform how you look at reports, dashboards or other processes. Keep your eye on it and use what you think will be most helpful. We’re always happy to be your Decision Scientist when choosing a new system. Email support or contact us about a Technology Assessment. Additional Resources Fundraising.ai has been leading the way in the nonprofit sector for understanding and developing AI in a responsible way. They have a large resource library if you want to delve into learning more. AI and Nonprofits: What Boards Need to Know from Board Effect. Responsible AI Use: How and Why to Start Developing Policies from Global Giving. Share via: Facebook Twitter LinkedIn