High-Level Considerations

Before adopting AI widely, organizations should consider its potential implications. While AI can offer significant benefits, it also presents challenges and ethical concerns, as discussed below. 

Training
As a new technology, there will likely be a learning curve. Organizational leaders should educate themselves on AI to make informed decisions about integrating it. Staff must be trained to use it properly in accordance with policy and guidelines.

Data Privacy
AI relies heavily on data, and managing sensitive donor and beneficiary information raises ethical and privacy concerns. Nonprofits must adhere to data privacy laws and implement robust security measures to safeguard sensitive information while upholding donor trust.

Data Quality and Bias
AI algorithms mirror the data they are trained on, which may contain bias and perpetuate discrimination and inequality. As the saying goes, “garbage in, garbage out.” It’s essential to exercise caution when making decisions based on AI data analysis to ensure that ethical AI practices are followed.

Impact Assessment
It is important to continuously assess how AI impacts the organization’s programs, services, and beneficiaries. This is vital to ensure that AI is being effectively implemented and utilized. Since AI is constantly evolving, it may be necessary to adjust strategies if the technology is not achieving its intended outcomes.

Risk Management
AI presents potential risks, such as damage to reputation from AI errors. Another risk is security breaches from hackers targeting AI. An organization’s “Incident Response Plan” should address these risks posed by AI.

Best Practice – Adopt an AI Governance Framework

Like an information governance policy, an AI governance policy will guide organizations in adopting and using AI, providing guideposts for its responsible and ethical use. 

The policy framework should include the following elements:

1. Ensure the AI policy aligns with the nonprofit’s mission and core values. Clearly define the policy’s purpose and scope, including the AI initiatives and applications covered.
2. Remember to address “change management” issues—ensuring employees understand that AI will help them work more creatively and strategically, not take their jobs.
3. Define the roles and responsibilities of individuals, board committees, and staff members responsible for oversight and implementation.
4. Plan to train the board and staff on AI ethics, responsible AI practices, and the organization’s AI policy.
5. Explain how the organization will interact with the community, including donors, volunteers, funders, and vendors. Collect feedback and address their concerns about AI initiatives.
6. Outline the process for reviewing, updating, and approving changes to the AI policy, involving relevant parties as necessary.
7. Articulate the ethical principles that guide AI initiatives, such as fairness, transparency, accountability, privacy, and non-discrimination. Emphasize the organization’s commitment to identifying and mitigating bias in AI algorithms and data sources.
8. Address how the organization will ensure compliance with AI-related laws and regulations, including data protection laws, and describe how the organization stays informed about changes in legal requirements.
9. Develop a timeline for the AI policy and initiative implementation stages. It’s advisable to take small steps.
   
   
   

The Don’ts of AI

One of artificial intelligence’s (AI)  main limitations is its lack of “consciousness,” which can result in inaccurate or even entirely false information. A significant concern is AI’s ability, and some might argue its tendency, to create realistic images and generate fake news or stories. Furthermore, like humans, AI can have inherent biases based on the data it receives, leading to skewed responses and analyses. If the input data contains biases, these biases will also be present in the output. Considering this, it’s essential for nonprofits and all users and organizations to be mindful of how they utilize AI. Here are some practical guidelines.

Don’t Plagiarize
AI systems are constantly improving, but we should keep in mind that AI-generated content may include inaccuracies or contradictions, which can be seen as ‘hallucinations’. Since AI relies on existing content or generates its own, it’s best to avoid directly copying and pasting whatever it creates. It’s also important to consider the risk of unintentionally using copyrighted content, especially in the case of images, which can violate third-party intellectual property rights.

Check the Facts
Similar to the previous comment, it is essential to always verify the truth and accuracy of AI-generated content.

Caution with Search Engine Optimization (SEO)
Google and other popular search engines can detect AI-generated content and may flag it as spam, negatively impacting search engine ranking efforts.

Keep Control of “Brand Voice”
While AI can provide helpful content suggestions and even generate new ideas for brand positioning, it cannot replace the brand expertise and organizational knowledge of your internal and external resources.

Know your License!
It’s important to remember that AI platforms have specific licenses and terms of use that govern their usage. These licenses offer different rights and limitations, and some may not allow for commercial use of the AI output. This means that if an organization uses the AI output for commercial purposes, they are violating the license. Before using AI internally, it’s crucial to carefully read the applicable license and ensure that your planned use aligns with the rights granted to you.

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Winston Churchill once said, “Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning”. As AI becomes more advanced and accessible, it has shown its potential to radically transform how nonprofits operate, helping them to boost efficiency and optimize fundraising. As with all new technology, the promise of increased efficiency certainly comes with both risks and rewards. In this article I discuss the current state of AI, and ways in which AI is being adopted and utilized by nonprofit organizations.  

Current State

In general terms, AI systems work by ingesting large amounts of data and analyzing it for correlations and patterns, then using these patterns to make predictions about future states. A recent study conducted by unite.ai found that 89% of nonprofit organizations believe that AI will improve efficiency, but only 28% say they currently use it. This low adoption rate is not surprising as the practical uses of AI are still being developed. But even in its infancy, AI provides a variety of useful tools and benefits.

How AI is Helping, and Can Help, Nonprofits 

1. Screening and Predicting Donor Behavior

AI analyzes data to screen prospective donors, provide segmentation and create predictive models about their behavior. Inputting AI data about past and potential donors assists nonprofits to identify new donor sources, gauge how much they are likely to give, and offer strategies for engagement. AI tools can also help analyze strategic donor profiles to suggest personalized engagement techniques such as A/B testing for different segments of donors, thus refining outreach strategies continuously. AI creates personalized emails and pitch letters by analyzing the organization’s information and data on previous and potential donors. 

2. Automating Routine Tasks 

AI automates routine tasks, freeing up time to focus on more important work and critical tasks while reducing the risk of human error. Examples include reviewing and updating donor prospect profiles, reading, and responding to incoming communications, and sending internal and external reminders.

3. Managing Communications, Social Media Engagement & Programmatic Support 

Generative AI learns patterns and structures in order to generate text, images, media, marketing copy, newsletters, and other communication material. Generative AI tools such as ChatGPT, Bard, and Bing generate draft press releases, social media posts, marketing copy, newsletters, and other communications material. AI-powered social media management tools can be used to analyze social media trends, write post text, image captions, and hashtags, and monitor engagement on multiple platforms. 

4. Managing Data and Evaluating Outcomes; Operational Support

AI-powered customer relationship management software and its analytic capabilities enable nonprofits to identify the most effective interventions and optimize resources. For example, AI can analyze financial data and make suggestions for budgetary planning. AI tools also make the process of managing data “at scale” a lot easier. AI is useful in evaluating programs, analyzing data to identify program outcomes, assess effectiveness, understand sentiment around the programs, and identify potential improvements.

5. Customer Service

Chatbots can handle inbound queries and requests, simulating human conversation by using natural language processing. These interactive AI assistants mimic human conversation and offer pop-up assistance to the user on a nonprofit’s website. This provides customer service and resources 24/7. AI provides “predictive analytics” by analyzing patterns of donor and website visitor behavior.  

6. Evaluating Programs 

AI helps organizations evaluate programs by analyzing output data to identify program outcomes, assess effectiveness, understand sentiment around the programs, and identify potential improvements. Nonprofits can then use these insights to make programming more efficient and effective for those who participate. 

7. Fraud Detection; Internal Controls

AI can help nonprofits protect financial transactions and sensitive donor information. For example, AI can analyze workflows and access privileges to ensure that authorized users’ duties and controls remain separate to prevent fraud. Similarly, it can automatically alert decision-makers when someone requests approval for a transaction. AI tools can be programmed to monitor suspicious activities or notice language that may indicate fraudulent activities in emails, chat logs, or submitted forms.   

AI is Here to Stay

It’s a certainty that AI is here to stay, and its impact on how we live and work will be transformational. In my next article, I will provide high-level considerations that organizations should address prior to adopting AI on a broad level. I’ll recommend best practices to adopt when employing AI, as well as a few “don’ts” for its use. Stay tuned!

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