Insights
We share how charity leaders can enhance their understanding of artificial intelligence and consider the emerging risks and opportunities to stay ahead of the curve
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 considerations around data privacy, security, and trustworthiness. With new AI tools emerging all the time, charity leaders must ensure they remain cognisant of these concerns, that their understanding of the opportunities and risks of AI are up-to-date amid the constant chopping and changing of tech.
Below, we delve into how nonprofit leaders can stay ahead of the AI curve to make the most of the technology and mitigate potential risks.
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AI can revolutionise the way charities operate, freeing up valuable staff time and resources so organisations can focus on their mission.
Here are three ways that AI can improve charity processes:
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 by quickly analysing data, finding trends, and using them to build bespoke reports.
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, in turn leading to higher engagement and donation rates.
Measuring the success of charity services 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.
Funding is very important for charities, and AI can help organisations find new opportunities and streamline the application process.
Here are four of the best ways charities can use AI to enhance their fundraising efforts:
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.
AI tools can assist in drafting funding applications by suggesting relevant content, structuring proposals, and ensuring compliance with funders’ requirements.
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.
Your charity is able to analyse past fundraising efforts and get recommendation from AI on the best messaging, imagery, and timing for crowdfunding appeals.
Nonprofit leaders must also consider the ethical implications and potential risks of using AI, especially around data privacy and security. Charities handle sensitive information making it crucial to use AI responsibly.
Here’s are four ways to stay secure whilst using AI:
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.
When selecting AI tools, charities should look for providers that offer encryption, access controls, and compliance with industry standards.
Avoid inputting personally identifiable or sensitive information into AI tools. For example, anonymised data can be used for impact measurement without risking privacy breaches.
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.
One of the biggest concerns around AI is whether it can be fully trusted. While AI is a powerful tool, it is not infallible.
Here are two of the considerations that charity leaders should be factoring in when using AI:
AI systems learn from historical data, which can sometimes carry biases. Human review is essential to ensure AI-generated recommendations align with ethical standards.
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.
To use AI responsibly, charities must be mindful of the data they share. Here’s an AI guide from IT experts Qlic IT which outlines what data is safe to input into AI, 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
Being cautious about data input ensures compliance and protects both your charity and those you serve.
AI has the potential to be of real support to 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 Charity Digital 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.
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