AI Adoption in Nonprofits: Insights from the Latest Survey

In today’s fast-paced digital world, nonprofit leaders like you constantly seek innovative ways to keep donors, manage with limited staff, and juggle multiple responsibilities. One technological advancement stands out as particularly promising: artificial intelligence (AI). AI might seem scary, and it’s understandable to be concerned about donor data and other safety issues, but when used thoughtfully, it is a valuable tool. Learn how AI adoption in nonprofits can work for you.

AI isn’t new, but how it’s being used and for what is growing rapidly. We interact with AI daily using biometrics to unlock our phones, asking Alexa or Siri to tell us the weather, or browsing Netflix. However, there are different categories of AI, and the one getting the most attention lately is generative AI. This involves AI tools that produce content types like images, text, and video. ChatGPT and Microsoft Copilot are examples of generative AI. You put in a prompt, and the AI gives you content. But what exactly does this mean for nonprofits?

Virtuous and Microsoft recently surveyed more than 300 nonprofit organizations to determine how they are using AI, if at all. 

Overall, those surveyed agree that AI can help nonprofits achieve their goals, but very few are actually using it.

Learn more about generative AI and how to use it thoughtfully with the webinar “AI Prompts 101 for Fundraisers” from Microsoft and Virtuous.

Let’s dive into how embracing AI can revolutionize your team.

Understanding the Potential

The survey shed light on where nonprofits believe AI will have the most substantial influence:

1. Automating Processes: Imagine streamlining repetitive tasks like data entry or scheduling—freeing up your team’s time for more strategic work that requires human touch. This is where a robust nonprofit CRM, like Virtuous, can help by automatically updating donor records and analyzing giving history.
2. Creating Content: Picture personalized donor communications crafted at lightning speed by intelligent algorithms. AI can help you tailor messages and engage with supporters effectively.
3. Employee Productivity: Offload mundane tasks to machines, allowing your staff to focus on high-impact activities. It’s time to focus on the meaningful work, not the menial work.
4. Decision Making: Data-driven insights from AI can sharpen your strategic decisions—spot trends and patterns invisible to human eyes.
5. Customer Service/Support: Chatbots offer instant support outside office hours, enhancing donor satisfaction.
6. Analyzing Data: AI tools can handle vast amounts of data, providing actionable insights for better planning and impact assessment.

Facing Challenges and Building Trust

Despite recognizing AI’s benefits, there are concerns at the top of nonprofits’ minds. Privacy and security, along with inaccuracy of data and answers, were among the top worries about AI. 

There are a few best practices to keep in mind when using AI:

• Define AI security for your organization and be sure it is enforced.
• Never use personal or sensitive information when creating prompts.
• Understand what the tool is doing with the data you’re providing. When possible, always opt out of tracking history and training usage. 
• Always edit the AI output and check sources.

Many resources are available to learn more about security and risk management in AI, including the Center for AI Safety, The Open Worldwide Application Security Project (OWASP), and the Cybersecurity and Infrastructure Security Agency (CISA).

Security and privacy concerns aren’t the only things holding nonprofits back from using AI— resources. Only 14% of nonprofits reported investing in specific AI training resources. Training can be a huge investment of time and money, so start by finding free resources. The Microsoft Digital Skills Center offers free courses, videos, and more so you and your team can learn when convenient. LinkedIn Learning also offers a host of expert classes.  

Types of AI for Nonprofits

Not all AI is the same. Large Language Models (LLM) ramped up the AI conversation in 2022 with the release of ChatGPT. These types of tools are typically at the top of people’s minds in discussions about AI, but multiple types benefit nonprofits.

1. Large Language Models: These ubiquitous tools (like ChatGPT) can draft content, but a human touch is often needed for warmth and authenticity. LLMs are great for drafting a thank you letter to a major donor or outlining a blog about year-end fundraising. Make sure you have a strong prompt, and remember to always review and edit the output.
2. Machine Learning: Predictive analytics can identify the best prospects for major gifts. Use it carefully to protect donor privacy. You don’t want to lose donor trust by accidentally sharing their data with unknown entities. 
3. AI Automation: Streamline support functions like customer service. Just be cautious—chatbots aren’t always a perfect replacement for humans.

AI Adoption in Nonprofits: How to Use It

There are several other ways to test AI in your daily tasks. If you’re stuck on what to write in your first outreach email, try using a generative AI engine like ChatGPT, Copilot, or Gemini. You can also use those to compile research and sources quickly or generate an image. Remember to keep sensitive data from your prompts and double-check all AI outputs for accuracy and plagiarism.   

Virtuous uses AI in some of its tools, so you can take the menial work out and focus on the meaningful work. Some examples of this are features like wealth screening and social scoring, which use algorithms to help you connect with donors confidently and build stronger relationships. With these features, you don’t have to guess how much to ask for or if they would be a good ambassador. These are simple, secure ways to dip your toe in the proverbial AI water. 

Schedule a demo today to see Virtuous in action. Discover what our tools can do for you so that you can focus on the meaningful work.

Nonprofits thrive on trust. To harness AI’s potential, ensure ethical and responsible use. Consider your community’s needs, protect data, and maintain transparency. Leverage AI wisely; you’ll empower your organization while safeguarding its mission.

Remember, it’s not about if nonprofits will embrace AI—it’s about doing it right.