Latest Guidance on AI and Fundraising

In this episode of The First Day podcast, host Bill Stanczykiewicz, Ed.D., is joined by Dr. Ashutosh Nandeshwar, Senior Vice President at CCS Fundraising and author of Data Science for Fundraising, to explore the rapidly evolving role of artificial intelligence (AI) in nonprofit fundraising. Dr. Nandeshwar breaks AI into two key categories: traditional AI, which includes predictive analytics and machine learning (long used for prospect identification and donor cultivation), and modern AI, which encompasses generative AI tools like ChatGPT. While predictive AI has been a staple in fundraising for years, generative AI is making waves by democratizing access to advanced technology, allowing nonprofits—especially smaller ones—to create content, analyze donor data, and streamline operations with minimal technical expertise. The conversation highlights a unique paradox: small nonprofits stand to gain the most from AI’s efficiency, yet larger organizations are often the first to adopt it due to greater resources and infrastructure. However, Dr. Nandeshwar shares survey data indicating that AI adoption is growing across nonprofits of all sizes, with smaller organizations increasingly leveraging generative AI for tasks like social media content, donor outreach, and report summarization. That said, he cautions that while AI can assist with automation, it does not replace the human touch needed for relationship-building. Additionally, organizations must be mindful of data privacy concerns, ensuring that sensitive donor information isn’t inadvertently shared with AI platforms. Bill and Dr. Nandeshwar also address common fears about AI, including the concern that it could become too powerful or eliminate the need for human fundraisers. While AI can generate text, analyze data, and even suggest donor engagement strategies, it still requires human oversight to ensure accuracy, maintain an organization’s unique voice, and build authentic donor relationships. AI is far from perfect—it can be "confidently incorrect," making up facts and presenting them with certainty. Fundraisers must carefully vet AI-generated content and establish internal guidelines for ethical and effective AI use. Additionally, Dr. Nandeshwar emphasizes that traditional AI techniques remain highly valuable and should not be overshadowed by the generative AI hype. For fundraisers looking to integrate AI into their work, Dr. Nandeshwar’s advice is simple: experiment, learn, and adapt. AI is neither a magic bullet nor something to fear—it’s a tool that, when used strategically, can improve efficiency and free up time for deeper donor engagement. However, while AI may help streamline certain tasks, there is no clear evidence yet that it is significantly reducing the time fundraisers spend on administrative work. Bill closes the episode by encouraging fundraisers to stay informed and proactive in exploring AI’s potential while maintaining a strong human-centered approach to donor relationships. He also highlights The Fund Raising School’s courses, certifications, and online resources to help nonprofits navigate AI and digital fundraising strategies effectively.