AI robot hand making a strategic move in chess
Published Date, 2023

Why Nonprofits Shouldn’t Ignore Artificial Intelligence In Fundraising

Created By: Jordan Ritchie and Brandon Emerson
February 22, 2023

Has your nonprofit been following the latest trends in Artificial Intelligence (AI)? If not, you could be missing out. Development professionals should know the capabilities and limitations of AI as it relates to each aspect of the development process. Many nonprofits are currently engaging AI tools to help automate and streamline donor analytics and cultivation to increase efficiencies.

So why should you consider AI in your fundraising strategy? We asked ChatGPT. Read along to see what it had to say. Leave a comment on our social channels to let us know your thoughts!

Q: Why shouldn’t nonprofits ignore Artificial Intelligence in fundraising?

ChatGPT: There are several reasons why nonprofits should not ignore Artificial Intelligence (AI) in their fundraising efforts:

  • Increased efficiency: AI can automate routine and time-consuming tasks, such as data entry, email campaigns, and donation processing, freeing up staff time for other activities.
  • Improved targeting: AI-powered donor segmentation and predictive analytics tools can help nonprofits better understand their donor base and target their fundraising efforts more effectively.
  • Personalization: AI can be used to create personalized fundraising campaigns and messaging, which can increase the likelihood that donors will respond positively.
  • Increased insights: AI algorithms can analyze vast amounts of data to provide nonprofits with valuable insights into donor behavior, preferences, and giving patterns.
  • Better use of resources: By using AI to optimize their fundraising strategies, nonprofits can make better use of their resources, including time and money, and achieve better results.

Ignoring AI in fundraising can result in missed opportunities to improve efficiency, effectiveness, and engagement with donors. While AI should not replace human relationships and connections with donors, it can be a valuable tool for nonprofits looking to achieve their fundraising goals.

Q: How is Artificial Intelligence used in fundraising?

ChatGPT: Artificial Intelligence (AI) is increasingly being used in fundraising to provide more personalized, efficient, and effective ways to engage with donors and raise funds. Some of the ways AI is used in fundraising include:

  • Donor segmentation: AI can analyze large amounts of donor data to create segmented groups of donors with similar characteristics, making it easier for organizations to target their fundraising efforts more effectively.
  • Predictive analytics: AI algorithms can analyze historical donation patterns and predict which donors are most likely to give and the most effective ways to approach them.
  • Personalized communications: AI can personalize fundraising appeals and messages based on each donor’s behavior, preferences, and past interactions with the organization.
  • Chatbots: AI-powered chatbots can provide real-time support for online donations and fundraising campaigns, answering donor questions and guiding them through the donation process.
  • Fraud detection: AI can help organizations detect and prevent fraudulent activities, such as credit card fraud and identity theft, during the donation process.

Overall, AI is being used in fundraising to provide more targeted, efficient, and effective fundraising strategies, resulting in better donor engagement and increased donations.

Q: Where should nonprofits start with using Artificial Intelligence to increase their fundraising?

ChatGPT: If a nonprofit is interested in using Artificial Intelligence (AI) to increase its fundraising, here are some steps to get started:

  • Assess needs and goals: Identify the specific challenges and goals that the organization wants to address through the use of AI, such as donor engagement, donor retention, or fundraising efficiency.
  • Research AI solutions: Research the different AI solutions available that address the organization’s needs and goals, including evaluating the cost, features, and integrations with other systems.
  • Start small: Begin by implementing a simple AI solution, such as a chatbot for online donations or a personalization tool for email communications, to test the impact and get experience with AI before expanding.
  • Collect and analyze data: Ensure that the organization is collecting and storing relevant data, such as donor behavior and giving history, to support the use of AI in fundraising.
  • Monitor and measure results: Regularly monitor the results of AI-powered fundraising efforts, tracking key metrics such as donor engagement, conversion rates, and overall fundraising success.
  • Continuously refine: Based on the results, continuously refine and optimize the use of AI in the organization’s fundraising strategies to improve performance and achieve better results.

By following these steps, nonprofits can effectively integrate AI into their fundraising strategies, resulting in improved donor engagement, increased efficiency, and better overall fundraising results.

Orr Group can help you build an AI fundraising program that is as innovative and unique as it is achievable and realistic. Get in touch to learn more.

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Disclaimer: Please note that there is potential for the chatbot to provide inaccurate or misinformed answers and may produce offensive or biased content. That said, Orr Group recommends human oversight when using ChatGPT or other AI tools.

Jordan Ritchie is a Senior Director and Co-Head of Strategy at Orr Group and supports our nonprofit clients in developing and implementing fundraising and major gifts strategy.

Brandon Emerson is a Director and Co-Head of Strategy at Orr Group. Brandon collaborates with clients to build actionable strategies that optimize fundraising and organizational function.

Related Resources

AI for Nonprofits: Tools and Tactics to Scale Your Impact
Published Date 2026
AI for Nonprofits: Tools and Tactics to Scale Your Impact

Created by: Terry Cangelosi Updated: January 5, 2026 In today’s technologically driven world, artificial intelligence (AI) has transformed various industries, including fundraising for nonprofit organizations. AI tools have proven to be significant game-changers, enhancing efficiency, creativity, and personalization in donor engagement. To capitalize on these opportunities, over 60% of nonprofits have started embracing AI in their operations. However, despite these high adoption rates, 92% of nonprofits feel unprepared for AI implementation. To prepare your team to fully leverage AI, let’s explore the landscape and discuss strategies for using popular AI-powered tools in nonprofit work. AI for Nonprofits: FAQ Leveraging AI: Best Practices for Nonprofits Top AI Tools for Nonprofits Orr Group’s AI Services for Nonprofits AI for Nonprofits: FAQ What is AI? AI is advanced technology that can perform intricate tasks and mimic human intelligence. While AI has become a hot topic in recent years, it’s been around for a while, performing simpler duties like sorting emails or scheduling appointments. However, recent advancements in AI have allowed machines to better understand language, process more complex tasks, and generate original content. Nonprofits can use AI to enhance: Prospecting and fundraising by analyzing existing donor data for trends and identifying new prospects with high potential to give Donor communication by analyzing donors based on shared characteristics and tailoring outreach to them for increased engagement Grant writing by quickly reading applications and generating proposal drafts based on previous applications and organizational materials Human resources by automating interview scheduling, onboarding, training, performance management, and other employee-focused functions Graphic design by creating visually appealing infographics or mockups Administrative functions by automating repetitive tasks like data entry, timekeeping,  and record maintenance Data insights and reporting by analyzing large datasets to forecast trends and enable better decision-making What types of AI do nonprofits usually use? The available selection of AI tools is vast and ever-growing. While each organization may have its own needs and goals that AI can support, below are several common types of AI tools you may encounter: Generative AI: machines that create new content based on user prompts and training data. Nonprofit applications: Content creation for grant proposals, social media posts, and impact reports. Large Language Models (LLMs): systems designed to understand and generate human language by learning from vast datasets. LLMs are a subset of generative AI focused primarily on creating and understanding text. Nonprofit applications: Automatically answering routine questions via chatbots or summarizing content. Predictive AI: systems that use statistical models and machine learning to identify patterns in large datasets to forecast future outcomes. Nonprofit applications: Prospecting for fundraising and data analysis to inform decision-making. What are the advantages of challenges of using nonprofit AI? Advantages Increased efficiency: With AI handling mundane tasks, nonprofits can focus on more pressing mission-critical work. Easy data reporting: Humans are more prone to making errors when reporting on and analyzing data, while AI can easily and accurately report on important data. Better decision-making: AI can provide context and information that allows nonprofits to make more informed choices faster. Scalability: Advanced AI solutions can easily adapt to a growing nonprofit’s needs, enabling organizations to handle increased workloads without overburdening staff.  Proactive growth: A majority of nonprofits have adopted AI, and it’s only getting more prevalent. Your nonprofit should leverage similar technology to keep up with others in the field. Challenges Data privacy and security: Nonprofits must confirm that their chosen solution complies with relevant data privacy laws, like GDPR and CCPA, to keep supporter data safe and maintain their trust. Research which regulations apply to your constituents based on their location, and ensure that AI usage is transparently communicated when necessary. Requires human oversight: AI can make mistakes in researching and synthesizing information, so nonprofit teams need to actively maintain their solutions (more on that later).  Initial and ongoing costs: Like any other software solution, AI solutions have costs associated with them, both financial and in time to implement the tech and onboard staff.  Ethical concerns: AI can reinforce biases based on the datasets it’s trained on. There are also concerns about Generative AI solutions trained on user data, which can plagiarize information from other sources. AI also requires a massive amount of computing power, which has raised environmental concerns. Loss of human touch: Nonprofit outreach relies on forging deep personal connections with supporters. While AI can emulate human thought, it lacks the emotional depth needed to reinforce relationships, so it still requires staff to ensure the final product aligns with an organization’s values. Leveraging AI: Best Practices for Nonprofits Assess your organization’s AI maturity. Before adopting new tools, identify where you stand. Are you in the ad-hoc phase (with individual staff using free tools individually), the operational phase (where your whole organization leverages enterprise tools for specific tasks), or the strategic phase (where AI tools are fully integrated into your CRM)? Knowing your baseline helps you choose the right tools for your current stage. Identify areas for AI application. AI has many different uses, your nonprofit doesn’t have to rely on it for everything. Based on your AI maturity, identify a few pressing areas where AI could help your operations, like content creation, data analysis, or task automation.  Establish parameters for AI privacy and ethics. Your entire team should be aligned on ethical best practices while using AI. Adopt an AI usage policy and supporting AI governance infrastructure to ensure you’re fulfilling promises to stakeholders and protecting their sensitive information. Double-check AI’s work. While AI can generate human-like text, it’s still evolving and can make mistakes. AI models often "hallucinate" facts or produce generic content that lacks the emotional resonance required for fundraising. Review and edit the generated content to ensure it aligns with your organization’s voice, mission, and fundraising goals. Properly train your team. AI can present a learning curve for teams, especially those less technologically advanced. Create structured learning sessions that encourage experimentation in a safe environment, helping team members overcome "tech anxiety." Investing in this education ensures high adoption rates and transforms AI from a daunting replacement into an empowering assistant. Don’t completely replace human interaction with AI. AI should automate administrative tasks and draft outlines, but it should never fully manage high-stakes donor relationships or sensitive communications. Use these tools to clear your schedule of busywork, allowing you to spend more time on the face-to-face interactions that drive major gifts. Work with an expert to implement AI effectively. Implementing AI involves complex challenges regarding data security, ethical compliance, and integration with existing systems that go beyond simple software installation. Since the stakes are so high, it’s worth consulting with a professional to cover all of your bases. Choosing the right AI systems, developing policies, and training your team are essential to make the most of these tools, but they take time and expert knowledge to get right. By working with a professional team like Orr Group, you can get up and running with new insights and ideal tools by your side.  Top AI Tools for Nonprofits General Use/LLM: ChatGPT Use: ChatGPT is an advanced language model that has significantly influenced the nonprofit sector’s fundraising strategies. It utilizes machine learning algorithms to generate human-like text based on the input it receives.  Best features: Live web search, DALL-E image generation, and access to a growing dataset. Cost per month: Limited free tier $20 Plus tier $200 Pro tier $25/user Team tier Pro tip: Eligible nonprofits can receive a 20% discount on ChatGPT Team and a 50% discount on ChatGPT Enterprise through OpenAI for Nonprofits.  AI Chatbot: Cody Use: Cody is a chatbot that uses organizational content to answer HR-related queries for employees based on defined knowledge sources. Best features: Easy user interface, customizable knowledge base, task automation, and specific features for IT support, business consulting, marketing, HR, and more. Cost: $29/month for the Basic tier, $249/month for the Advanced tier Writing: Grammarly Use: Grammarly is a browser extension that enhances grammar and generates written content. Best features: Tone suggestions, auto-completion of writing, and extensive user-supplemented knowledge base. Cost: Free tier, $12/month, $15/month Prospecting: Apollo Use: Apollo is a sourcing tool that collects contact information for prospective supporters. Best features: Automated outreach, meeting scheduler, and CRM enrichment tools. Cost: Free-$119/month Grantwriting: Copilot Use: Copilot is an AI assistant integrated directly into the Microsoft 365 ecosystem that helps draft, edit, and summarize grant narratives and proposals. Best features: Seamless integration with Microsoft Word to draft content from bullet points or rewrite text for ton, the ability to securely reference your organization’s internal files to ground answers in your specific data, and web-connected research capabilities. Cost: Free-$30/user/month Graphic Design: Gamma Use: Gamma is a graphic design platform that facilitates the creation of presentations, documents, webpages, infographics, and more. Best features: AI-generated designs, customization options, and a user-friendly interface. Cost: Free-$15/seat/month Administrative: Zapier Use: Zapier automates repetitive administrative tasks while connecting various apps and services. Best features: Configurable workflows, app integrations, and a large integration ecosystem. Cost: Free-$69/month Data Management: Microsoft Power BI Use: Microsoft Power BI is a Microsoft add-on tool that allows users to create reports, visualize data, and share insights. It can be combined with Microsoft Copilot 365 for AI data insights. Best features: User-friendly integrations with Microsoft Suite, interactive dashboards, and customizable reports. Cost: Free-$10/user/month Meeting Management: Zoom AI Companion Use: Zoom AI Companion simplifies meeting management by automatically completing tasks during the meeting. Best features: Real-time meeting transcriptions, agenda generation, and the ability to assign next actions with a meeting summary. Cost: Free with paid Zoom account Orr Group’s AI Services for Nonprofits As previously mentioned, having an AI expert help with implementation can help you get up and running faster—and smarter. Orr Group has your organization covered with nonprofit-specific AI implementation experience.  We offer a comprehensive suite of AI services for nonprofits, including:  AI Assessment: Through comprehensive analysis and qualification, we create a high-ROI custom action plan that addresses your nonprofit’s specific needs with AI solutions. AI Implementation: Low-tech experience? No problem. We handle technical AI integration across teams, connecting AI tools to your CRM and existing platforms to automate administrative burdens.  AI Training: Our team sets your nonprofit up for long-term success with a comprehensive training regimen. We work with you to build your internal AI policies and deliver customized staff training, fostering a culture of confidence and safety. AI Advisory: AI constantly evolves, so even after your initial integration, you need to remain alert to new opportunities. We provide ongoing analysis and regular strategy sessions to ensure your organization stays ahead of the curve. Our embedded partnership approach has given us hands-on experience helping many nonprofits to leverage AI to the fullest. For instance, take our work with Anthos|Home, who needed to improve the process of matching New York housing voucher recipients to available apartments and increase limited staff capacity. Through a detailed evaluation, Orr Group identified key opportunities to automate activities, improve data accuracy, streamline administrative tasks, and accelerate the housing placement process. Our work resulted in: 50+ opportunities identified 30+ new automation touchpoints 1,500 administrative hours saved annually This initiative reduced manual data entry, increased efficiencies, and enhanced the experience for both tenants and housing providers. By aligning technology with its core mission, Anthos|Home continues to strengthen its ability to drive lasting change in the fight against homelessness. Contact Orr Group Now that you have a solid understanding of AI in the nonprofit world, it’s time to create and execute your own strategy! Developing policies, training your team, and staying up-to-date on the newest best practices can be draining—but it doesn’t have to be. Having an expert team by your side allows you to play around with these tools, test them out, and see what works for you without compromising mission-critical activities. We suggest working with a team that brings a business-oriented mindset, an embedded partnership approach, and AI-specific expertise, like Orr Group. Our extensive nonprofit experience and hands-on strategy can help your nonprofit become more comfortable with AI and develop a sustainable use policy in the long term. That way, you can adapt to the rapidly changing world of AI with ease! If you’re interested in learning more about AI for nonprofits, check out our other resources: AI’s Impact On Human Resources: Harnessing Potential And Addressing Bias At Your Nonprofit. AI presents nonprofit HR teams with new, unique challenges. Address them head on with this guide’s advice. Harnessing AI Responsibly: A Guide for Nonprofit Leaders. Want to learn more about ethical AI implementation in nonprofits for mission impact? Our guide has you covered. 5 Cost And Time-Efficient Strategies For Nonprofits To Embrace AI. Use these 5 strategies to expand your nonprofit’s use of artificial intelligence in fundraising and operations. Terry Cangelosi drives Orr Group’s organizational strategy on responsible AI usage, pushes to increase user adoption, develops policies and trainings, and implements AI and automation-driven efficiencies. As Head of Operations, Terry maintains safe, compliant, and effective day-to-day operations and implements projects to continually improve organizational systems.