AI for Charities:
The hype-free guide

Published: 2nd June 2023 by Tom Pratt

Introduction

Whilst you probably won’t be replaced by a robot anytime soon, Artificial intelligence (AI) is revolutionising how nonprofits and charities operate. AI provides new opportunities to engage with donors. It can optimise fundraising campaigns and increase their impact.

Amongst all the hype, AI has the real potential to transform the way charities and nonprofits operate. By providing new tools and capabilities to:

  • engage with donors

  • optimise campaigns

  • increase their impact

This guide runs through potential ways charities can use AI. Feel free to skip to the relevant section or check out our list of 50+ AI Tools For Charities to have a go yourself.


Benefits of AI for Charities and Nonprofits

One of the key advantages of AI for charities and nonprofits is the ability to analyse large amounts of data quickly and accurately. By using AI-powered tools, charities can gain insights into donor behaviour and preferences. This allows campaigns and marketing efforts to better meet the needs and interests of the target audience. AI can also help charities to identify potential donors and target them with personalised messages.

AI technologies can help charities and nonprofits to:

  • better understand their donors

  • identify patterns and trends

  • personalise their outreach efforts

  • increase their fundraising activity

  • enhance their marketing campaigns

  • automate their processes

  • make their campaigning budgets stretch further

Charities can leverage AI technologies to make achieving their goals and making a difference in the world easier.

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Advantages of AI for Charities and Nonprofits

Efficient Fundraising

One of the most significant advantages of AI for charities and nonprofits is its ability to streamline fundraising efforts. AI-powered tools can analyse data and identify patterns. This helps organisations target the right donors and create more effective fundraising campaigns. By automating certain tasks, charities can save time and resources while improving the user experience.

AI-powered chatbots can help charities engage and answer people's questions in real time. This can lead to higher conversion rates and increased donations. Additionally, AI can help charities identify major donors, tailoring the outreach efforts to these individuals.

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Improved Supporter Engagement

AI can help charities improve supporter engagement by providing personalised experiences. By analysing data on funder behaviour, AI-powered tools can suggest personalised content. Examples include articles and videos that are more likely to resonate with people. This can lead to increased engagement and loyalty.

Charities can better understand their donors by using AI tools to analyse data on interactions with the organisation. This can help identify areas where changes or improvements are needed.

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Effective Marketing

Charities can create more effective marketing campaigns by using AI to automate tasks like research or asset generation. This can help charities expand their reach and attract more supporters - more about this later.

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AI applications for charity fundraising

Supporter Profiling

AI can help charities and nonprofits to identify the right donors to target for fundraising campaigns. By analysing data on supporter information such as

  • donation histories

  • demographics

  • interests

AI algorithms can create detailed profiles of donors. These profiles help charities to personalise fundraising messages improving chances of success. For example, AI can analyse data on donors' social media activity. This would identify which causes people are most interested in plus what types of content they are most likely to respond to.  

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Donor Management

AI can also help charities manage their relationships with donors more effectively. By analysing data, AI algorithms can identify which donors are most engaged and which may need more attention. This can help charities to prioritise their outreach efforts and resources.  

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Donation Processing

AI can also streamline the process of accepting and processing donations. For example, AI-powered chatbots can handle donor inquiries and requests. This would free up staff time for more strategic tasks.

Overall, AI has the potential to revolutionise the way that charities and nonprofits approach fundraising, donor engagement, and marketing.

By leveraging its power, where appropriate, charities can:

  • improve their targeting

  • personalise their messages

  • streamline their operations

  • run more effective fundraising campaigns

  • produce better outcomes for the causes they support.  

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How to use AI to help with donor engagement

Personalised Communication & Segmentation

AI-powered tools can help charities and nonprofits create personalised communication strategies that can increase donor engagement and fundraising efforts. By analysing donor data, AI can help create targeted messages that resonate with donors on a personal level. This can include personalised email campaigns, social media posts, and even direct mailings. AI can help charities segment their donors into groups based on their interests, giving history to communicate more effectively.

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Donor Retention

Donor retention is a critical factor for the long-term success of any charity or nonprofit. AI can analyse donor behaviour and preferences to create personalised retention strategies.

For example, identify donors at risk of lapsing to trigger actions to retain them. This could involve offering them a special promotion or personalised message. By using AI to improve donor retention rates, charities can reduce their fundraising costs and increase their impact. 

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Donor Feedback

AI can also help charities collect and analyse donor feedback to improve their fundraising efforts by:

  • using chatbots, surveys, and other AI-powered tools to collect real-time feedback from supporters

  • using this information to improve communication strategies and fundraising campaigns.

  • identify patterns in donor feedback to identify areas for improvement

  • plan these improvements in the workflow for development

Overall, AI has the potential to revolutionise the way charities and nonprofits engage with donors and raise funds. 

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AI Applications for Charity Marketing

AI-powered marketing tools can benefit charities and nonprofits. These tools help reach target audiences more effectively and efficiently.

Many charity marketing teams are small with limited resources. AI tools can be used to:

  • automate marketing campaigns

  • personalise messages

  • write emails

  • create copy

  • write ads

  • optimise video content

  • create product images

  • brainstorm campaign ideas

  • monitor brand reputation

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Targeted Marketing Campaigns

Using AI, charities can create targeted marketing campaigns that are more likely to reach the right people. AI-powered tools can analyse data on donors and potential donors. The patterns and preferences identified can then be used to tailor marketing messages. This helps charities create more effective campaigns which are more likely to resonate with their audience.

AI tools help charities automate their marketing campaigns, saving time and resources. For example:

  • Email marketing tools automatically send personalised emails to donors based on giving history. This helps charities stay in touch with donors, keeping them engaged without requiring a lot of manual effort

Sales tools can be utilised to create engaging content for potential funders.

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Social Media Management

Social media is an important marketing channel for charities. Yet, managing social media accounts can be time-consuming. AI-powered tools can help charities manage their social media accounts more efficiently. For example, AI tools can help charities:

  • charities schedule posts at optimal times

  • analyse engagement metrics

  • identify which types of content are most effective

  • generate social media posts automatically

  • spot trends and influencers to incorporate into campaigns

  • monitor social media for mentions of their brand or relevant keywords.

These tools help charities stay on top of conversations about their cause. Comments or questions from their audience can be spotted and responded to in a timely manner.

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