81. How Donors Feel About the Use of AI in Fundraising
About this episode
Are you ready to embrace the future of fundraising? As artificial intelligence (AI) continues to reshape our world, it's crucial for those of us in the nonprofit sector to understand its implications for charitable giving. I recently had the pleasure of hosting Nathan Chappell and Cherian Koshy on my podcast, where we dove deep into their groundbreaking study on donor perceptions of AI in fundraising. Their insights were eye-opening, and I'm excited to share them with you. In this episode, we share some of the key findings from their research and offer practical takeaways. By the end of this episode, you'll have a clearer understanding of how AI is shaping donor expectations and how you can leverage this knowledge to enhance your fundraising efforts while maintaining trust and transparency.
The Promise and Perils of AI in Fundraising
As we navigate the rapidly evolving landscape of AI in fundraising, it's essential to recognize both its potential benefits and risks. Nathan and Cherian emphasized that while AI offers tremendous opportunities to amplify our missions and increase efficiency, we must approach its implementation with caution and responsibility.
One of the most striking findings from their study was that 86.3% of donors believe transparency about AI usage is crucial. This underscores the importance of being open and honest with our supporters about how we're leveraging technology to enhance our fundraising efforts. As Nathan pointed out, this transparency can be as simple as creating an AI manifesto on your website, explaining how and why you're using AI to support your mission.
Donor Perceptions and Expectations
Interestingly, the study revealed that donors are generally comfortable with AI being used in various aspects of charitable activities, including solicitation of funds, donor communication, and financial management. However, they also expressed concerns about privacy, data security, and the potential loss of human interaction in the fundraising process.
This highlights a crucial balance we need to strike: leveraging AI to improve our effectiveness while maintaining the personal touch that donors value. As Cherian noted, "Donors are sort of expecting us to use AI. They're comfortable with that. But they want the human interaction."
Responsible and Beneficial AI Implementation
Perhaps the most important takeaway from our conversation was the need for a responsible and beneficial approach to AI in fundraising. Nathan and Cherian emphasized that we must go beyond simply considering the short-term benefits of AI and think critically about its long-term implications for our sector and society as a whole.
This means asking tough questions about how AI might be used or misused and involving stakeholders – especially donors – in these discussions. By doing so, we can ensure that our use of AI aligns with our values and enhances rather than undermines the trust our donors place in us.
Conclusion
As we embrace the potential of AI in fundraising, it's clear that transparency, responsibility, and a commitment to maintaining human connections are key. The insights from Nathan and Cherian's study provide a valuable roadmap for navigating this new terrain. By keeping our donors' perspectives in mind and approaching AI implementation thoughtfully, we can harness its power to amplify our missions while strengthening the relationships that are at the heart of philanthropy.
I'd love to hear your thoughts on this topic. How is your organization approaching AI in fundraising? What challenges or opportunities do you see?
Please share your experiences in the comments below, and don't forget to share this post with your colleagues who might benefit from these insights. Together, we can shape a future of fundraising that's both technologically advanced and deeply human.
With boundless gratitude,
Tammy Zonker
Major Gift Expert & Keynote Speaker
Our guests
Cherian Koshy, Vice President of Product Strategy, Kindsight
LinkedIn / Twitter / Contact / Website
Nathan Chappell, MBA, MNA, CFRE, Senior Vice President, DonorSearch
“You must be able to leverage technology to support your organization. But do so in a strategic and measured way that mitigates long term and unintended consequences.”
Nathan Chappell, MBA, MNA, CFRE, Senior Vice President, DonorSearch
“Know that the technology is going to rapidly change and how you do your work will change more significantly over the next year than it has over the last five.”
Cherian Koshy, Vice President of Product Strategy, Kindsight
Resources mentioned in this episode
Donor Perceptions of AI: Key Findings
Engage – Human-Centered AI (formerly NonprofitOS)
Artificial Intelligence and the Future of Generosity, Nathan Chappell, TEDx
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