The Nonprofit AI Revolution: Why the Human Touch Matters More Than Ever

The nonprofit sector isn’t safe from the significant shifts happening as a result of artificial intelligence (AI) and predictive large language models. Donors and nonprofit leaders realize that transformation isn't on the way — it's here. And the organizations that will survive will adapt, as will their fundraisers.

That said, nonprofits tend to overlook the fact that while AI can write appeals, rank prospects and predict giving patterns, it can't create and build human relationships that drive transformational impact. As a result, the organizations that will thrive and keep their doors open don't blindly invest in technology but in their professional teams to boost the right skill sets, particularly for social and emotional intelligence. Philanthropy is human!

The New Fundraising Reality

This year, more than ever, I’ve been in countless conversations about how to integrate AI into fundraising. Let's face it: It's no secret that tech companies are selling people on the fact that AI is going to be the answer to everything. As a result, we have fundraising teams writing fundraising appeals, investing in AI-driven donor research, and ranking as donors become scarcer and fundraising dollars decline in certain areas. 

What required a full team of fundraisers — say five or six people, from grant writers to coordinators and researchers — now can be narrowed down to a person or two with AI doing the remaining work. Nonprofits leaders are seeking to quickly cut costs and lean into tech. But here's the thing — they're missing the sector's point — humans matter. 

The Transparency Revolution on Impact

My view of the sector's changes doesn't align with the theory that the best solution for nonprofits is to lean exclusively on technology. Donors drive change, and they're not asking for tech to lower costs. What they are asking for is to leverage technology to provide transparency and robust impact reporting. Moreover, there’s more discussion at the major gift level for independent reporting and transparency regarding nonprofits. 

So, what does that mean in practice? Well, imagine using AI impact reporting to trace where every dollar impacts how meals are served or families are housed. Imagine warehouses where machines minimize waste and communicate to program officers and fundraisers that there's a greater need for diapers in a natural disaster — and not clothes donations. As a result, those professionals get the call out to supporters.

The shortfall we must remember with potent technology is that it has no soul. It's there to predict, crunch numbers and bring more transparency to nonprofit operations than ever, but it 100% needs human oversight. AI is not infallible, and in fact, it can manipulate people. So, it’s on nonprofits hiring the right people for oversight that will lead to the real revolution — complete and accurate reporting on nonprofit impact. 

The Human Advantage: Relationship-Driven Philanthropy

There are 1.8 million nonprofits, and we're moving toward consolidation. However, with AI and tech, it's my view that the organizations that will thrive are not the ones investing in it without much thought and intention. The nonprofits that will survive are those that invest in humans who have different skill sets, particularly around social and emotional intelligence (which AI doesn’t do). 

Technology excels at processing data and predicting the context and words to write fundraising emails. But it doesn't have meaningful conversations with peers and donors at a nonprofit dinner. It doesn't support donors during personal crises, or nurture long-term and meaningful relationships. This is why humans and relational fundraisers matter more than ever for ensuring resources. Nonprofits need to reimagine their organizations. 

Preparing for the New Paradigm

Leaders need to lean into the human element for organizations to thrive during the AI revolution. Two critical areas of focus exist to ensure that organizations survive consolidation and thrive.

1. Invest in Relationship-Building Team Capabilities

Some people are natural-born people persons, and others aren’t, but it doesn’t mean they can’t learn the skills. Therefore, proper coaching and training for relational team development is a start. In other words, teams need to focus on the tech and their roles with each other and the tech. Who’s responsible for what? Where’s the ethical human, controlled use and oversight of technology? Teams don't just know this. It must be taught and learned. 

2. Get Your Team Out From Behind Their Desks

Again, technology is shifting everyone's roles within nonprofits, from grant writers to major gift fundraisers. So, humans have to do what they do best, and that means connecting humans to humans. Nonprofit boards and leaders need to get their fundraisers out from behind the desk and into the community, local events, etc. Trained and skilled fundraisers must be out meeting people. 

Embracing the Future That Is Here Now

Donors want and require specific, measurable outcomes and impact, and they know that more platforms — using AI — can provide them with that knowledge. They don’t want just emotional appeals, likely written by large language models with human review. They want verifiable results. The nonprofits who combine meaningful relationship building through balance-sheet philanthropy and other approaches with intentional and useful impact reporting are the ones that will survive what some call the “AI apocalypse” in the sector.

Candidly, the idea of the end of nonprofits on the altar of AI misses the point of the sector. We're not necessarily witnessing the end of nonprofits. Still, we see a massive transformation with potent precision tools for transparency and financial and programmatic reporting. We're also witnessing the absolute need — more than ever — for properly trained and skilled humans to be the gatekeepers. 

The preceding content was provided by a contributor unaffiliated with NonProfit PRO. The views expressed within may not directly reflect the thoughts or opinions of the staff of NonProfit PRO.