Summit to focus on responsible use of AI in fundraising

Artificial intelligence (AI) is rapidly transforming fundraising. From donor segmentation and predictive analytics to personalized communications and grant research, AI tools can help nonprofits raise more funds with greater efficiency. However, with this power comes responsibility. The ethical, transparent, and thoughtful use of AI is essential to maintaining donor trust, protecting privacy, and upholding the values that underpin the nonprofit sector.

The Promise of AI in Fundraising

AI offers significant opportunities for fundraisers, including:

• Improved donor insights: AI can analyze large datasets to identify giving patterns, predict donor retention, and uncover new prospects.
• Personalized engagement: Machine learning tools can tailor messaging based on donor interests, timing, and past behavior.
• Operational efficiency: Automation can reduce administrative burden, allowing fundraisers to focus on relationship-building and strategy.
• Enhanced decision-making: Predictive models can support campaign planning, gift ask strategies, and resource allocation.

Used responsibly, these capabilities can strengthen fundraising outcomes while improving the donor experience.

Ethical Risks and Challenges

Despite its benefits, AI also introduces risks that nonprofits must actively manage:

• Data privacy and security: Fundraising relies on sensitive personal and financial data. Improper data handling or weak safeguards can lead to breaches and loss of trust.
• Bias and exclusion: AI systems trained on historical data may replicate or amplify existing biases, potentially marginalizing certain donor groups or communities.
• Lack of transparency: If donors do not understand how their data is used or how decisions are made, confidence in the organization may erode.
• Over-automation: Excessive reliance on AI can lead to impersonal engagement and weaken authentic human relationships, which are central to fundraising.

Responsible use requires balancing innovation with accountability.

Principles for Responsible AI Use in Fundraising

To ensure ethical and effective adoption, nonprofits should be guided by the following principles:

1. Transparency

Organizations should clearly communicate when and how AI is used in fundraising activities. Donors deserve to know how their data informs outreach, segmentation, or solicitation strategies.

2. Data Stewardship

Collect only data that is necessary, store it securely, and comply with all applicable data protection regulations. Strong governance and regular audits are essential.

3. Fairness and Inclusion

AI models should be reviewed for bias and tested to ensure they do not unfairly disadvantage or exclude specific populations. Human oversight is critical in interpreting AI-generated recommendations.

4. Human-Centered Decision-Making

AI should support, not replace, professional judgment. Fundraisers must remain accountable for decisions, ensuring empathy, context, and ethics guide final actions.

5. Purpose Alignment

AI tools should advance the organization’s mission and values, not simply maximize short-term revenue. Responsible fundraising prioritizes long-term relationships and public trust.

Building Organizational Readiness

Responsible AI use also requires internal preparation:

• Staff training: Fundraisers and leaders should understand both the capabilities and limitations of AI tools.
• Clear policies: Organizations should establish ethical guidelines for AI use, including accountability structures and escalation processes.
• Vendor due diligence: When using third-party AI platforms, nonprofits should assess vendors’ data practices, transparency, and ethical standards.

Conclusion

AI has the potential to significantly enhance fundraising effectiveness, but its use must be grounded in responsibility, ethics, and respect for donors. By prioritizing transparency, data protection, fairness, and human oversight, nonprofits can harness AI as a force for good—strengthening trust, advancing their missions, and ensuring fundraising remains both effective and principled in the digital age.

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