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.

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.