As society adapts to the ever-expanding presence of AI – particularly generative AI that creates new, original content – the philanthropic sector is increasingly embracing this rapidly evolving technology and its vast capabilities. In this new blog series, we’ll be examining the current uses and considerations of AI in the rapidly changing space of philanthropy. We’ll be exploring the benefits, drawbacks and current challenges of AI for funders and their nonprofit partners, and discuss strategies they are using for implementation, governance, liability, and risk mitigation. (And in case you’re wondering, yes, we did develop this series in part with AI, namely, to conduct thorough research more efficiently.) We hope it provides a practical framework to help the philanthropic sector confidently use AI for the greater good.
Some Ways AI Is Currently Being Used in Philanthropy
Philanthropists are employing AI for help with all kinds of things, from more efficiently performing critical tasks like writing and reviewing grant applications, to enhancing impact measurement through data collection and analysis, to creating a more equitable giving environment by mitigating biases from decision-making processes.
Nonprofits are also turning to AI for improving efficiencies like faster grant writing, streamlined operations, and sharper fundraising through predictive donor modeling. Philanthropy software, too, is enhanced by AI, to feature more powerful technology solutions for the industry, from integrated management platforms for private foundations to sophisticated donor engagement tools for nonprofits to configurable administration systems for donor-advised fund (DAF) sponsors.
Evolution and Adaptation
With AI firmly embedded in philanthropy, conversations are shifting from experimentation (How can we use it? What can it do for us?) to governance and safety (How do we ensure it’s used responsibly?). Many charitable giving entities, such as private foundations and DAF sponsors, are moving beyond pilot phases of AI and establishing internal policies to guide its implementation. Nonprofits are doing so as well, increasingly with the help of their funding partners. Monitoring and regulating the use of such boundless technology is a formidable task but an important one—as is training employees.
AI For Giving
Applications of AI in philanthropy are abundant and continuously evolving. For more than 30 years, the sector has relied on technology – coined today as PhilTech – to improve operational efficiency and boost effectiveness. With the rise of AI, these technologies are more powerful than ever. Here’s a closer look at how AI enhances PhilTech for funders as well as nonprofits:
Grantmaking and Funding Decisions
Pioneered by Foundation Source more than 25 years ago, grants management platforms – which have evolved to support nearly all aspects of foundation management – enable donors to make more informed and impactful funding decisions. With the help of AI, these tools now offer more robust features such as data analysis to identify trends or gaps that may influence funding allocation and risk assessment to flag potential concerns based on historical outcomes or predictive indicators.
Charitable Focus
Through its extensive research and filtering capabilities, AI can help donors determine which causes and nonprofits to support whether they are giving directly or through a charitable vehicle. Through values-based matching platforms, such as Firefly Giving, AI can pair donors with charities according to their specific interests, morals, goals and preferences.
Fundraising
In a similar values-based vein, AI can help nonprofits more accurately identify donors to target in fundraising efforts. Tools such as DonorSearch Ai and Instrumentl can analyze donor history, predict potential for major gifts, and personalize outreach to improve campaign messaging, donor engagement and build trust.
For both nonprofits and funders, AI can also scan news sites and social media to identify stories and trends that align with charitable missions and aspirations.
Program Evaluation and Impact Assessment
To strengthen evaluation efforts, AI can rapidly analyze large datasets collected from surveys, reports, interviews and other sources, enabling the sector to extract insights more efficiently. It can also synthesize findings into clear, concise impact reports that help stakeholders quickly build awareness and understanding.
Communication and Knowledge Sharing
By improving both the efficiency and quality of communications, AI enhances how philanthropists and nonprofits engage with partners, grantees/grantors, and broader audiences. It can curate relevant research, reports and best practices tied to an organization’s focus areas and assist in drafting a wide range of materials – from internal updates to external thought leadership such as, blogs, press releases and social media content. Additionally, AI can help identify potential bias in applications, funding decisions and communications; while these systems may themselves reflect biases in their training data, when paired with human oversight they can help surface inequities that might otherwise go unnoticed.
As AI progresses, its applications within philanthropy will further expand. The sector may rely on AI to predict the future impact of funding decisions and hyper-personalize charitable solutions to specific communities and causes. We’ll also likely see increased collaboration of philanthropy with the technology sector as well as other areas, such as social sciences, academia and the arts, to share AI tools, gain diverse perspectives, and collectively address local and global challenges.
In our upcoming edition in this series, we’ll dive deeper into how AI is changing the work of philanthropy.
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