AI for Nonprofits: How to Improve Performance

Non-profit organisations are becoming increasingly aware of the potential for artificial intelligence (AI) to enhance efficiency, with 89% of them agreeing that it will make them more effective. However, only 28% have implemented or experimented with this technology, primarily due to a lack of knowledge about AI and its capabilities. To help bridge this gap, here are five of AI’s greatest benefits for nonprofits.

Fundraising and donor management are two of the most important AI applications for nonprofit organisations. The information in donor databases can be analysed by machine learning tools and supplemented with data from sources such as social media to learn more about each contributor. This level of customization is extraordinarily effective and can increase engagement and reduce churn. Parkinson’s UK, a British non-profit organisation, used artificial intelligence to segment its donors and received over 400 gifts of over $15,000 that they would have missed using conventional methods.

Additionally, AI can automate outreach and customer service functions. Writing and sending emails consumes an average of 28 percent of the workday, so automating this task with AI can free up hours per day. For increased user engagement, generative AI models can use templates for outreach materials and personalise messages for each individual user. Additionally, chatbots can receive and respond to inquiries about the organisation around the clock.

Organizations can also use AI to automate internal controls in order to produce documentation that is more transparent and expedient. Programs that utilise machine learning can analyse workflows and access permissions to ensure that employees’ responsibilities and controls remain distinct to prevent fraud. In addition, they can notify authority figures when a transaction is requested so that they can review it before authorising it. Additionally, AI can record and file completed tasks automatically for expedited documentation.

Sentiment analysis is another significant application of AI for nonprofit organisations. Using tools for natural language processing, web articles and social media posts can be analysed to determine how people feel about an organisation, revealing whether initiatives have been received negatively or exceeded expectations.

Lastly, AI is an essential tool for combating cybercrime. Network monitoring tools powered by machine learning can detect anomalies in data to prevent potential security breaches and alert IT personnel for further investigation. Automated security tools can also scan devices for obsolete software, back up essential files, and monitor the dark web for compromised passwords.

Utilizing AI for fundraising and donor management, automating outreach, internal controls, sentiment analysis, and cybersecurity has many benefits for nonprofits. Despite mounting obstacles, these advantages will help them reach their objectives as efficiently as possible.