(Illustration by Peter Thomas Ryan)
Nonprofit leaders rightly prioritize human connection as foundational to their work. For this reason, they may be reluctant to employ AI in their organizations.
But what if they came to believe that AI could enhance, rather than replace, their relationships? What if AI enabled their nonprofits to better understand, engage, and inspire their donors while freeing up valuable time to focus on their missions?
We see enormous potential in advancing how AI can responsibly support—and even reshape—the future of giving. We believe the next wave of mission-driven work will be led by organizations that learn to use AI not to erode, but to strengthen, the relationships that drive their impact.
To be fair, nonprofits have had reasons for adopting AI more slowly than corporations, including technical constraints and data restrictions, well-placed ethical concerns, and the cost of investing in new technology and talent. But to the extent that nonprofits’ hesitation stems from fears that AI will corrode relationships—particularly with donors—we believe that they should rethink their reluctance. Used judiciously, AI can enrich relationships by providing an even greater degree of personalization and of the targeted insights that supporters (both donors and volunteers), providers, and beneficiaries all seek to stretch every dollar to its most impactful use.
For example, consider an issue dogging many nonprofits: donors who contribute once and never return. Research suggests that first-time donor retention rates hover around 20 to 30 percent. Research has also shown that increased repeated donations to nonprofits boosts unrestricted funds, in turn supporting nonprofits to achieve their intended impact and increasing social welfare. Repeat donors are far more valuable to nonprofits over time, yet nonprofits have a difficult time recruiting them.
Today’s donors themselves expect seamless digital experiences, personalized interactions, and clear evidence of success—exactly like what they receive from tech-savvy organizations in the private sector. By integrating predictive AI into operations, nonprofits can deliver these expectations to donors without requiring massive budgets or technical expertise, thereby better retaining their continued support.
Five Ways to Leverage AI
From our joint experiences in academic research, philanthropy, nonprofit work, and tech innovation, we see five ways in which AI can revolutionize donor engagement and fundraising:
1. Experiment with Personalization at Scale | One of the most powerful applications of AI is its ability to tailor donor engagement to individual preferences. Predictive AI can analyze donors’ past giving behavior, interests, and communication patterns to craft personalized messages and donation appeals to an individual known throughout their pattern of behavior or among the cohort of users who share comparable traits. AI-driven segmentation ensures that nonprofits can deliver highly targeted appeals, improving the effectiveness of fundraising campaigns.
For example, Dataro is one of many companies that use machine learning to analyze donor databases. They are trusted by nonprofits across countries on three continents (the United States, the United Kingdom, and Australia) to uncover predictive metrics and generate targeted donor lists. Their platform enables nonprofits to analyze thousands of donor data points to instantly identify the best donor audience for every campaign. What’s more, the use of AI-driven segmentation empowers nonprofits to engage more effectively with the donors they identify.
2. Leverage Predictive AI for Donor Retention | AI can predict which donors are at risk of disengaging and provide insights into how nonprofits can re-engage them before they stop giving. Organizations can then trigger automated, targeted follow-ups, such as thank-you messages, exclusive updates, impact reports, or other methods of engagement that do not expressly involve donations.
To illustrate this point, consider Animal Haven. Since 1967, the New York-based nonprofit has rescued and found homes for dogs and cats who have been abandoned throughout the Northeastern United States. Animal Haven partnered with AI platform Fundraise Up and used its analyses to tailor donation experiences in real-time, increasing conversion rates and donor retention. The nonprofit found that AI-supported insights allowed them to personalize donation suggestions for every visitor to its website. Since its application of AI in 2019 to better connect with supporters and increase its donor retention, Animal Haven reports a 264 percent increase in recurring donors.
3. AI-Enhanced Engagement | AI can also help match donors with causes that resonate with them, making their giving more meaningful and impactful, and increasing their likelihood of sustained engagement.
Coauthor Sam Fankuchen is the CEO of Golden, an award-winning volunteer-management software used by thousands of organizations, including nonprofits, corporations, foundations, government offices, schools, and health-care institutions. Golden’s coaching companion, “Goldie,” interacts with volunteers and donors and uses AI to translate their goals, intentions, and reflections into personalized recommendations. When users converse with Goldie about their aspirations, goals, and other feelings, Goldie’s AI compares their statement with personal data, behavioral data, and content on the platform to suggest how and when the user should engage in their next episode of volunteering or donation activity.
4. Optimize Giving Experiences with AI-Powered Fundraising Campaigns, Microgiving, and Crowdfunding | Rather than relying on trial and error, nonprofits can use AI to analyze past fundraising campaigns and optimize future ones for better performance. AI can also make small-scale donations more frequent and effortless, helping nonprofits tap into a wider pool of donors.
Specifically, AI-powered tools can conduct real-time A/B testing, adjusting email subject lines, donation requests, and messaging styles to maximize engagement. They can then optimize the donation experience by suggesting donation amounts and tailoring the process in real-time to each donor’s preferences. AI-driven round-up apps allow users to automatically donate spare change, increasing donation frequency without burdening the donor.
Returning to Golden, Goldie users control their robust profile data and extensive list of device permissions to create reciprocity. By sharing access with either the system or organizers operating on Golden, each individual receives more personalized opportunity recommendations. By leveraging AI insights from the users’ conversation with Goldie, together with other content, user personal, and behavioral data, Goldie promotes sustained engagement and fundraising campaigns, and helps each donor to develop into a more effective philanthropist over time.
5. Deploy AI Chatbots for Donor Support and Engagement | AI-driven chatbots can provide instant, 24/7 support, answering donor questions, facilitating donations, and even sharing personalized stories. By stimulating one-on-one conversations, such chatbots ensure that donors feel valued and engaged.
Chatbots are often the first point of interface between the nonprofit and donors. Chatbot functions vary, though. Take for example Clara, the blood donation chatbot by the American Red Cross, using the power of AI to help us manage our appointment and learn about donations. Clara is available on the right-hand side of the official American Red Cross website, making it the first point of contact for anyone wanting to ask questions about eligibility for becoming a blood donor, and other ways besides blood to give to the American Red Cross. By handling these inquiries, Clara frees staff to focus on high-level engagement.
Four Principles
AI tools, on their own, do not inherently strengthen or erode the human relationships that define nonprofit work; their full impact depends entirely on how they are deployed. To avoid potential problems, nonprofits should adopt four principles to ensure AI aligns with their values.
Far from depersonalizing relationships, Al tools can help nonprofits communicate in more personalized ways to their donors.
First, nonprofits should establish clear AI guidelines that prioritize human relationships. Organizations need to define where and how AI is used in fundraising and engagement, ensuring that human oversight remains central in decision-making. Nonprofits may want to afford donors and beneficiaries the option to opt in to AI participation, so they understand when and how AI is involved in their interactions. Transparency is critical—stakeholders should always know when they are engaging with AI-assisted tools, reinforcing trust rather than undermining it.
Second, nonprofits must continuously seek feedback to assess AI’s real-world impact on donors. AI tools should not be implemented and left unchecked. Organizations should actively gather input from donors, beneficiaries, and staff to ensure AI is enhancing, not diminishing, relationships. This feedback should shape further refinements to the use of AI tools.
Third, nonprofit leaders should deploy staff time strategically by letting AI handle tasks, not relationships. AI-generated donor insights can help fundraisers personalize outreach, but the engagement itself should still be led by people. Especially for sensitive conversations—such as those involving major gifts, crisis response, or beneficiary storytelling—AI should never fully replace the human touch.
Finally, organizations must commit to ethical AI use, centering transparency and trust. Nonprofits should ensure AI aligns with their values, avoiding bias and respecting donor and beneficiary privacy. AI should not be a black box—organizations must be clear about how AI is shaping engagement and fundraising strategies. Beyond efficiency, AI should be deployed to strengthen equity and accessibility, ensuring that its benefits reach a broad and diverse range of stakeholders.
Far from depersonalizing relationships, AI tools can help nonprofits communicate in more personalized and relevant ways to their donors. By implementing these AI strategies and adopting these principles, nonprofits can enhance their fundraising efforts, improve donor retention, and ultimately drive greater social impact.
Read more stories by Angela Aristidou, Andrew Dunckelman & Sam Fankuchen.