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: 10 Tools and Best Practices to Know
Published Date 2025
AI for Nonprofits: 10 Tools and Best Practices to Know

Created by: CJ Orr May 19, 2025 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 understand the landscape and discuss the benefits and challenges of using popular AI-powered tools in nonprofit work. Overview of AI for Nonprofits Leveraging AI: Best Practices for Nonprofits Top AI Tools for Nonprofits Overview of AI for Nonprofits What is AI? AI is any 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. In the nonprofit world, organizations typically use AI to enhance and streamline: 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 drafts responses, based on previous applications and organizational materials Human resources by automating interview scheduling, onboarding, training, performance management, and more 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 Types of AI Tools for Nonprofits The library 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: consists of 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 uses statistical models and machine learning to identify patterns in large datasets to forecast future outcomes.  Nonprofit applications: Prospecting for fundraising and future financial growth. Advantages and Challenges of Using 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. 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. Most 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/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 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. 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 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. Identify areas for AI application. While AI has many different uses, your nonprofit doesn’t have to rely on it for everything. To start, identify a few pressing areas where AI could help your operations, like content creation, data analysis, or task automation.  Work with an expert to implement AI effectively. The stakes are high when implementing AI, so it’s worth consulting with a professional to cover all of your bases. Double-check AI’s work. While AI can generate human-like text, it’s not flawless. You must 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. Align everyone with comprehensive AI training and educational resources. Don’t completely replace human interaction with AI. As previously mentioned, AI can’t perfectly emulate your connections with supporters. Use AI to brainstorm ideas for communication (like an outline) and fill in the details yourself. Choosing the right AI systems, developing policies, and training your team are essential, 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:  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: Grantable Use: Grantable is an LLM that automates aspects of the grantwriting and submission processes. Best features: Ability to train the system from writing samples, reference user-uploaded materials from a library, and include educational resources. Cost: Free-$89/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 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. 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 ability to assign next actions with a meeting summary. Cost: Free with paid Zoom account 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 updated 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 with a business-oriented mindset, embedded partnership approach, and AI-specific expertise, like Orr Group. Our well-rounded 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! CJ Orr is President and Partner of Orr Group. As an expert project and relationship manager with 10+ years of experience in the sector, CJ utilizes data and technology to execute on the development of strategies and tactics to drive effective fundraising plans that meet or exceed targets.