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AI and Fundraising: What You Need to Know

Howard Lake Director at Giving X Ltd Posted 1 year ago

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CharityConnect: AI and Fundraising: What You Need to Know
Last week I spoke at CharityConnect’s Connections event to discuss some of the key issues surrounding generative AI and its relevance to fundraising. I’ve written a summary of my talk for those of you who couldn’t attend.

Disclaimer - for once, here is an article about AI that does not include a punchline that some or all of this was written by AI.
AI and its algorithms have become an integral part of our culture. We feel its presence in nearly every facet of our lives. Kasabian's latest single is called 'Algorithms', and in this summer Mission Impossible movie Tom Cruise battles an evil AI.

As fundraisers, it is essential to focus on the AI tools we are currently using or considering implementing because they have a direct relevance or potential to enhance our work. It would be nearly impossible to keep track of the ever-increasing number of AI tools released, it’s estimated there are around a thousand new releases a week.
The introduction of ChatGPT last year transformed the fundraising landscape, prompting immediate online discussions among fundraisers about its potential applications. From this, questions emerged: could it improve grant applications? Can it enhance communication with donors? Suddenly, charities were exposed to information that is accessible in the form of a prompt—it’s that easy.
AI tools are freely available for personal and professional use. Accessibility is the key factor here—almost anyone can dip their toes into AI without undergoing formal training. With AI, it’s quite easy to ‘learn as you go’, but if you are finding it tricky to navigate, there are many free resources available for you to access, a few of which are available in my presentation slides. Having said this, we know from the Charity Digital Skills report that a quarter of charities use AI in their day-to-day operations but many find it challenging to navigate. If you feel overwhelmed, you are not alone. It’s moving at a very fast pace and it’s exhausting just trying to keep up!
Charities might well undertake a slower AI adoption than other sectors. Most charities, especially smaller ones, rely on third-party tools instead of building their own models. Leveraging AI effectively demands training, strategic planning, informed governance, and skills development—a combination of resources in which the charity sector as a whole faces a limited supply.
First, let's be clear: AI is not cheating!  While it introduces various challenges and issues, it can be an invaluable tool for fundraisers, offering significant time savings when used appropriately. Some of you might recall a similar outcry in the late 70s and early 80s that digital calculators would harm the maths skills of the nation's youth.
How do you manage fundraisers in the age of AI?
This is a top priority for managers, as AI skills will likely become essential in future job roles.

The memory capacity of generative AI models is rapidly expanding, enabling the processing of vast amounts of information that was not feasible a mere six months ago. Personal assistants powered by AI are expected to assume a significant portion of daily workloads. The one thing to hold on to is that AI, applied well, can save us time and enables fundraisers to focus on other important tasks. Even saving just 10 minutes or an hour per day for each staff member or volunteer could transform fundraising across the country significantly.
Think beyond ChatGPT. There are many tools out there ready for you to use. A few AI tools I would recommend:
- Charity Excellence Framework's collection of AI tools and advice
- Nonprofit Operating System by Cherian Koshy
- Nick Scott's Fundraising Copywriting AI assistant
If your initial experience with ChatGPT didn’t meet your expectations, revisit it in a month and you’ll find that it has developed and transformed even further!
A few things to consider:
AI is damaging. AI usage raises legitimate ethical concerns, much like the web and social media. By employing AI, we are utilising a tool that can have damaging effects on individuals. Biases inherent in the world around us permeate AI systems, leading to biased outcomes. For instance, less than a quarter of AI professionals are women. This affects what we see, what we do and what tools we use.
Charities will have a new role in the age of AI, well beyond fundraising. We might even see a new charity set up to address some of the negative impacts of AI. For example, job losses, mental health and legal issues from people having their identity stolen.
Why does AI matter to charities?
As fundraisers, we, along with our supporters, are actively utilising AI tools. We should create our own tools tailored specifically to the needs and values of charities. While most individuals we interact with are using AI, there are still those who are not. It is important to consider how we address and communicate with people who aren’t using it.
To summarise, I have a few suggestions on how to go forward as a fundraiser:
  1. Start with the basics: begin by focusing on the fundamentals. Review the existing data and data policies—the quality of your own data is at the heart of any successful use of tools.
     
  2. Think big. AI is different from anything we’ve ever experienced before: it’s development is not a linear progression. Write down and discuss some of the things you hope AI can help your charity overcome. Consider how AI can save time, streamline activities that consume creative and strategic thinking, and address any obstacles hindering your progress. Think: "what did I find dull, repetitive or time-consuming today?" These goals may take time but it’s essential to think ahead.
  3. Collaboration lies at the heart of effective AI utilisation. Engage in discussions and share ideas with others in the field to learn from their experiences and insights. By sharing knowledge, exchanging best practices, and learning from one another, we can collectively harness the power of AI for the benefit of our charities and the causes we support.
If you attended the session, for the resources I mentioned, please feel free to email [email protected] and they will send it over. I have answered several questions we received throughout the event which will be available in the comments.
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