Artificial intelligence (AI) is rapidly transforming the nonprofit sector, offering ample opportunities for charities to streamline processes, enhance fundraising efforts, and improve decision-making. However, with these advancements come important data privacy, security, and trustworthiness considerations.
Let’s explore how nonprofit leaders can stay ahead of the AI curve.
How charities can use AI to optimise processes
Automating administrative work
Many charities struggle with time-consuming administrative tasks, from processing donations to managing volunteer schedules. AI-powered tools can automate these processes, for example, AI-driven accounting software can handle financial reporting.
Improving donor engagement
AI-powered CRM systems can analyse donor behaviour, segment supporters, and personalise communications. Charities can use AI to tailor their fundraising campaigns, sending the right message to the right person at the right time, this helps lead to higher engagement and donation rates.
Enhancing impact measurement
Measuring the success of charity programs is essential for securing funding and demonstrating impact. AI can analyse data from various sources to track progress, identify trends, and predict outcomes. For example, AI can assess whether certain interventions are working effectively or highlight areas where additional support is needed.
By integrating AI into daily operations, charities can improve efficiency, reduce costs, and enhance the overall impact of their services.
Using AI for funding
Grant research
AI can scan multiple grant opportunities, identifying those that best match your charity’s mission. This saves time and increases the likelihood of securing funding.
Automated proposal writing
AI tools can assist in drafting funding applications by suggesting relevant content, structuring proposals, and ensuring compliance with funders’ requirements.
Predicting donor behaviour
Analytics through AI can assess donor engagement patterns and predict which supporters are most likely to donate. Charities can use this insight to create more targeted and effective fundraising campaigns.
Optimising crowdfunding campaigns
Your charity can analyse past fundraising efforts and receive recommendations from AI on the best messaging, imagery, and timing for crowdfunding appeals.
Addressing AI concerns: privacy, security and data protection
Compliance with data protection regulations
AI tools must comply with regulations such as GDPR (General Data Protection Regulation). This means ensuring that any AI system used to process personal data is transparent, secure, and aligned with legal requirements.
Choosing secure AI platforms
When selecting AI tools, charities should look for providers that offer encryption, access controls, and compliance with industry standards.
Minimising data input
Avoid inputting personally identifiable or sensitive information into AI tools. For example, anonymised data can be used for impact measurement without risking privacy breaches.
Regular AI audits
Charities should periodically review how AI systems process data and make decisions. This ensures that AI outputs remain ethical, unbiased, and aligned with the charity’s values.
By taking a proactive approach to AI security, nonprofit leaders can protect their organisation’s reputation and the trust of their stakeholders.
Can AI be trusted?
One of the biggest concerns around AI is whether it can be fully trusted. While AI is a powerful tool, it is not infallible.
Bias and verifying information
AI systems learn from historical data, which can sometimes carry biases. Human review is essential to ensure AI-generated recommendations align with ethical standards.
Ethical decision-making
AI lacks human judgment, compassion, and ethical reasoning. While AI can suggest courses of action, nonprofit leaders must always make the final decision, ensuring their choices align with their charity’s values. By keeping a human in the loop, charities can harness AI’s benefits while minimising risks.
What data can be safely input into AI tools?
Being cautious about data input ensures compliance and protects both your charity and those you serve. Here’s an AI guide to what is safe, and what to avoid:
Safe to input:
- Publicly available information, for example, general research and publicly listed grants
- Anonymised and aggregated data, including service delivery stats and volunteer numbers
- Operational metrics such as event attendance and fundraising trends
Avoid inputting:
- Personally identifiable information, including names, addresses, and phone numbers
- Financial records and sensitive donor data
- Confidential beneficiary information without encryption
Final thoughts
AI has the potential to revolutionise the nonprofit sector, helping charities become more efficient, effective, and financially sustainable. However, nonprofit leaders must approach AI adoption strategically balancing innovation with ethical considerations.
At Qlic IT for Charities, we support ACEVO members in navigating the complexities of AI, cyber security, and digital transformation. If you’re interested in exploring AI solutions for your charity, get in touch today to learn how we can help.
