Nonprofit AI E-Book

Nathan Chappell

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 382

Veröffentlichungsjahr: 2025

Beschreibung

A hands-on roadmap to implement Artificial Intelligence in your nonprofit organization

You've probably done everything in life that you were told to do: get educated, secure a job, work hard and be careful with money. And where did that lead you? Straight to the middle! But weren't you made for more?

In Nonprofit AI: A Comprehensive Guide to Implementing Artificial Intelligence for Social Good, a team of veteran artificial intelligence (AI) experts from the nonprofit sector delivers an insightful and practical overview of how purpose-driven organizations can use AI to increase their impact and advance their missions. The authors offer an all-encompassing guide to understanding the promise and peril of implementing AI in the nonprofit sector, addressing both the theoretical and hands-on aspects of this necessary transformation.

The book provides you with case studies, practical tools, ethical frameworks and templates you can use to address the challenges of AI adoption – including ethical limitations – head-on. It draws on the authors' thirty years of combined experience in the nonprofit industry to help you equip your nonprofit stakeholders with the knowledge and tools they need to successfully navigate the AI revolution.

You'll also find:

• Innovative and proven approaches to responsible and beneficial AI implementation taken by real-world organizations that will inspire and guide you as you move forward
• Strategic planning, project management, and data governance templates and resources you can use immediately in your own nonprofit
• Information on available AI training programs and resources to build AI fluency and capacity within nonprofit organizations.
• Best practices for ensuring AI systems are transparent, accountable, and aligned with the mission and values of nonprofit organizations.

Perfect for anyone interested in enhancing their nonprofit organization with the thoughtful, responsible, and beneficial integration of AI technologies, Nonprofit AI is a must-read for nonprofit directors, managers, fundraisers, employees, consultants, volunteers, and other stakeholders.

Leseprobe

Table of Contents

Cover

Table of Contents

Praise for Nonprofit AI

Title Page

Copyright

Dedication

Our Commitment to Responsible and Beneficial AI in Writing Nonprofit AI

Introduction

1 The Need for Innovation in the Nonprofit Sector Has Never Been Greater

What Got Us Here Won't Get Us There: The Nonprofit Sector at a Crossroads

The Nonprofit Sector: A Pillar of Global Economy and Social Well‐being

The Confluence of Circumstances: A Perfect Storm for Nonprofit Innovation

The Generosity Crisis: A Sobering Reality

The Imperative for Innovation

The AI Revolution: A Pivotal Shift

A More Charitable Future: The Promise of AI for Nonprofits

2 AI Deconstructed: Separating Myth, Hype, and Reality

The AI Revolution in Context

Deconstructing AI: The Reality Behind the Myths

The Evolution of AI: From Checkers to Charitable Giving

The Current State of AI: A Perfect Technological Opportunity

Defining the Science: More Than Robots and Sci‐Fi

The Future of AI: Trends and Possibilities

Why Understanding These Technologies Matters for Nonprofits

AI Myths versus Reality

Artificial Intelligence versus Augmented Intelligence: Synergy, Not Competition

The AI Hype Cycle: Navigating the Wave of Expectations

AI: An Imperative, Not an Option

Embracing AI with Eyes Wide Open

3 AI Fluency and the Future Nonprofit Workforce

The Imperative of AI Literacy in the Nonprofit Sector

What Is AI Fluency?

Why AI Fluency Matters

The Current State of AI Fluency in Nonprofits

Key Components of AI Fluency

AI Fluency and the Changing Nonprofit Workforce

The Future of AI Fluency in Nonprofits

The Road to AI Fluency Is Essential, Not Optional

4 The AI‐First Nonprofit

Reimagining Nonprofit Impact for Future Success

From Passive AI Use to Proactive AI Strategies: A Paradigm Shift

Lessons from the Private Sector: A Comparative Analysis of AI Adoption

The Stakes Have Never Been Higher

What It Means to Be an AI‐First Nonprofit

AI Can Solve Previously Unsolvable Problems

Scalability: AI and Mission Delivery at Unprecedented Scale

Wealth Does Not Equal Innovation: Insights from Trevor Noah

AI Across Nonprofit Functions: Front‐of‐House and Back‐of‐House

Encouraging a Culture of Innovation through AI

Becoming an AI‐First Nonprofit

5 AI for Program Development and Impact Measurement

The Power of AI in Nonprofit Operations

AI for Program Development: Designing Smarter Programs

AI for Impact Measurement: Quantifying Success with Precision

Case Study: Stop Soldier Suicide

Recommendations for Successful AI Adoption in Program Development and Measurement

6 AI for Fundraising, Resource Development, and Donor Experience

Precision Philanthropy: The Role of Predictive AI in Fundraising

Evolution 1: AI‐Enhanced Data Enrichment

Evolution 2: AI in Continual Learning for Fundraising Models

Evolution 3: Differentiating Donors from Prospects

Evolution 4: Quality Over Quantity in Donor Relationships

Evolution 5: Building Trust through Transparency in AI

AI‐Driven Personalization in Fundraising

Streamlining Fundraising with AI Automation

Case Study: Children's Healthcare of Atlanta

7 AI for Volunteer Engagement and Management

The Role of AI in Volunteer Engagement and Management

Forecasting Volunteer Needs and Engagement

Creating Personalized Volunteer Experiences

Streamlining Volunteer Coordination and Administration

Leveraging AI for Effective Volunteer Management

Case Study: The Trevor Project

Recommendations for Successful AI Adoption in Volunteer Management

8 AI for Nonprofit Marketing and Communications

AI in Nonprofit Marketing: A Game‐Changer

Content Creation: Using AI to Generate and Optimize Content

Social Media Management: Leveraging AI for Engagement

AI‐Driven Advocacy and Engagement

AI for Targeted Advertising Campaigns

AI for Event Promotion and Management

SEO versus GEO for Nonprofits

Case Study: Furniture Bank

Recommendations for Successful AI Adoption in Marketing

The Future of AI in Nonprofit Marketing

9 AI for Administration and Human Resources

Revolutionizing Nonprofit Operations with AI

Recommendations for Successful AI Adoption in Nonprofit Operations

Streamlining Nonprofit Administration

Forecasting the Future with AI

AI‐Powered Content Creation

Effortless Administration through Automation

Empowering Human Resources with AI

Anticipating HR Needs with AI Insights

Tailoring HR Content with AI

Automating HR Tasks for Greater Impact

Case Study: Education Resource Strategies

Conclusion

10 AI Transformation Is a Journey, Not a Destination

The Importance of Change Management in AI Adoption

Strategies for Successful AI Implementation

Setting Up a Multidisciplinary Team for Success

Why a Multidisciplinary Team Is Essential

Failing Fast: AI Is Iterative by Design

Investing in Philanthropic R&D

The Need for Perpetual Adaptation: Lessons from History

AI Is Here to Stay—Adapt or Get Left Behind

11 Beyond AI Ethics: The Nonprofit Sector's Imperative for Responsible and Beneficial AI

Upholding Ethical Standards: AI Aligned with Values

Currency of Trust: The Nonprofit Sector's Most Valuable Asset

Ethical According to Whom?: Measuring AI Perceptions from an End User’s Perspective

The Unique Role of the Nonprofit Sector in AI Governance

AI Advances Exponentially: Keeping Your AI Framework Adaptable

The Responsible and Beneficial AI Framework

Human Oversight: Keeping Humans in Control of AI Decisions

Ethical versus Legal Considerations: Navigating the Gray Areas

Data Privacy and Security: Protecting Sensitive Information

Bias and Fairness: Ensuring AI Systems Are Fair and Unbiased

The Role of Legislation: Navigating the Regulatory Landscape

A Higher Standard to Promote and Protect Trust

12 Evaluating AI for Nonprofits

Criteria for Evaluation: Key Factors for AI Selection

Does the AI Prioritize, Protect, and Promote Trust?

Red Flags: Warning Signs of Potentially Harmful AI Solutions

The Ever‐Evolving Nature of AI: Why Evaluations Must Be Reassessed Frequently

13 Humanity or Utility? New Questions for a New World

Humanity over Utility: A Moral Imperative

Trading Privacy for Convenience: A Faustian Bargain?

Provocative Questions for the Nonprofit Sector

Humanity as the Guiding Principle

The Need for Deliberation: Prioritizing Humanity in AI

Case Study: The Dangers of Over‐optimizing for Utility

Analogies in the Nonprofit World: The Hammer and the Hand

Human Oversight: The Need for Continuous Human Control

Humanity over Utility—A Moral Imperative

14 Overcoming Challenges in AI Adoption

Cultural Challenges: No Vision versus Too Much Vision

Jumping into the Deep End

Cultural Resistance

Technical Challenges

External Factors

Navigating Trust in the AI Marketplace

Recommendations

15 Building an AI Strategy for Your Nonprofit

The Role of AI in Nonprofit Strategy

Setting AI Goals

Developing Your AI Adoption Plan

Creating an AI Roadmap

Budgeting for AI Implementation

Building a Multi‐Disciplinary AI Team

AI Governance to Support Adoption

Measuring Impact and Continuous Improvement

16 Training and Capacity Building

Building Capacity for AI Adoption in Nonprofits

AI Training Programs: Available Resources and Courses for AI Training

Skill Development: Key Skills Needed to Leverage AI Effectively

Building AI Literacy: Strategies to Increase AI Fluency Among Staff

Financial Resources for Nonprofits to Adopt AI: Programs Offering Financial Assistance for AI Adoption

Building Capacity for AI Adoption

17 The Future of AI for Nonprofits

Agentive AI: A Step toward Autonomous Operations

Immersive Storytelling Through AR and VR

Quantum Computing: The Next Frontier

Deepfakes and AI‐Generated Content: Navigating Ethical Complexities

Efficiency versus Human‐centric Mission: The Tension

Long‐Term Vision: How AI Will Shape the Future of the Nonprofit Sector

Personalization at Scale: A New Era of Donor Engagement

Predictive Analytics and Proactive Decision‐Making

AI's Role in Reducing or Exacerbating Inequality

Preparing for the Future: Steps Nonprofits Can Take to Stay Ahead

The Future of AI for Nonprofits

18 Parting Thoughts

A Future Shaped by AI: Humanity at the Core

The Imperative for Urgent Action

The Moral Imperative of AI Governance

The Practical Steps to an AI‐Driven Future

A Call to Action: Leading the Future of Social Good

The Future Is in Your Hands

Appendix: Resources for AI Governance Templates and Frameworks

Fundraising.AI Framework

EU AI Act

Singapore Model AI Governance Framework

NIST AI Risk Management Framework

AI Ethics Guidelines by the European High‐Level Expert Group on AI

Glossary

References

About the Authors

Index

End User License Agreement

Guide

Cover Page

Table of Contents

Title Page

Copyright

Dedication

Our Commitment to Responsible and Beneficial AI in Writing Nonprofit AI

Introduction

Begin Reading

Appendix: Resources for AI Governance Templates and Frameworks

Glossary

References

About the Authors

Index

End User License Agreement

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Praise for Nonprofit AI

We are deeply grateful for the generous endorsements and thoughtful reviews from some of the nonprofit and technology industries' most esteemed thought leaders. Their insights and support underscore the urgency and importance of Nonprofit AI as a guide for mission‐driven organizations navigating this transformative era. This book is dedicated to helping nonprofits harness artificial intelligence responsibly, ensuring greater impact while upholding the values of trust, transparency, and community. We extend our sincere thanks to each leader who took the time to share their perspective and reinforce the vital role of AI in shaping the future of philanthropy.

“This powerful guide looks at how AI can revolutionize the work of the non‐profit sector, for both the people involved in fundraising and the communities their non‐profits serve. The authors provide practical and easy‐to‐understand advice for those just starting on the AI journey and those who are already on their way.”

‐Alice Ayres,President and CEO,Association for Healthcare Philanthropy

“Working with thousands of nonprofits at AWS over the last 10 years has shown me that successful AI adoption isn't about size or budget ‐ it's about intentional implementation. This book finally gives organizations of all sizes the roadmap they need to transform their operations and increase their impact.”

‐ Rick Buettner,Director of Nonprofits at Amazon Web Services (AWS)

“Wealth is great, but connection is better when it comes to finding and engaging donors. That's where they prove AI (and all of the other vowels) come in.”

– Paul Clolery, vice president & editorial director, The NonProfit Times.

“Nonprofit AI is more than just a guide to technology—it's a blueprint for the future of philanthropy. By weaving together real‐world examples, ethical frameworks, and actionable strategies, this book empowers nonprofits to embrace AI confidently and responsibly. It's an indispensable resource for any organization ready to innovate while staying mission‐focused.”

‐ Gabe Cooper, CEO, Virtuous

“I have read many books on AI meant to be a guide, but this one isn't just one of those guides; this book is a call to action for our nonprofits to step up and lead with courage. Through every chapter and example, authors make AI feel approachable and doable while reminding us of our tremendous responsibility in shaping its use for social good. This book is a must‐read for anyone who cares about impact – in other words, our entire social sector.”

‐ Meena Das, CEO, Namaste Data

“Nonprofit AI offers nonprofit leaders an accessible and practical guide to using AI to enhance their impact without adding to their burnout. Chappell and Rosenkrans cut through the noise to show how AI can support, not replace, the human side of fundraising.”

‐ Mallory Erickson, Author of What the Fundraising: Embracing and Enabling the People Behind the Purpose

“I highly recommend Nonprofit AI: A Comprehensive Guide to Implementing Artificial Intelligence for Social Good and I commend Nathan and Scott for putting it together. This book is packed with practical advice and real examples that show nonprofit leaders how to use AI in ways that actually make sense for their mission. It cuts through the noise and fluff and makes AI feel less intimidating, which is exactly what so many organizations need right now. If you're looking to make smarter decisions and get back to the work that really matters, this book is for you.”

‐ Shereese Floyd, AI Consultants for Nonprofits

“Nonprofit AI is a must‐read for nonprofit leaders looking to leverage artificial intelligence to amplify their mission while navigating the complexities of responsible adoption. With a pragmatic approach, this book demystifies AI and provides real‐world strategies for integrating technology in a way that enhances efficiency, engagement, and long‐term impact. In a rapidly evolving digital landscape, this is the guide that every mission‐driven organization needs to stay ahead while staying true to its values.”

‐ Lori Freeman, Global GM & VP, Salesforce for Nonprofits

“Whether you're new to AI or looking to refine your strategy, this book offers the tools and knowledge necessary to explore its promise and potential while tackling the critical work needed to promote and achieve ethical AI—ensuring that the future of the nonprofit sector advances social good.”

‐ Alesia Frerichs, President & CEO, Lutheran Services in America

“AI is becoming a fundamental part of the nonprofit sector. Nonprofit AI explores how organizations can adapt and innovate with AI. Their insights provide a practical perspective on leveraging AI responsibly to maximize impact.”

‐ Randall Hallett, CEO and Founder, Hallett Philanthropy

“As a nonprofit CEO implementing AI daily, I can affirm this isn't just another tech manual ‐ it's the definitive playbook our sector desperately needs, transforming AI from buzzword to practical tool for amplifying our missions. Just as our predecessors couldn't imagine running a charity without electricity, this book shows us why we won't remember how we served communities without AI.”

‐ Dan Kershaw, Executive Director at Furniture Bank

“This book is for the innovators who see AI as a mission multiplier. It's for nonprofit leaders ready to scale their impact without scaling their workload. It's for the change‐makers who know that in a world of algorithms, authentic human connection matters more than ever. And it's for those who believe that compassion plus innovation is how we'll solve humanity's greatest challenges. For those who hope the future looks like the past, or that AI is a passing fad, this book will change your mind.”

‐ Tim Lockie, Founder and CEO, The Human Stack

“This book perfectly frames how the balance of human touch, advanced technology and mission impact can amplify philanthropy. Nonprofit AI is the ideal bridge to connect fundraising progress with practical application, today.”

‐ Justin McCord, Chief of Staff, RKD Group

“Nathan and Scott provide the expertise and ethical clarity nonprofits need to navigate the rapidly evolving world of AI. This book turns complex concepts into actionable strategies, ensuring organizations can harness AI for real, mission‐driven change.”

‐ Ben Miller, SVP of Data Science and Analytics, Bonterra

“Over 30 years in technology and the past decade implementing AI in organizations, I have seen nonprofits struggle to keep pace with private enterprises and governments. Nathan and Scott deliver a commonsense roadmap designed specifically for nonprofit leaders navigating the AI revolution. Their guide bridges technological innovation with practical implementation, offering insights and real‐world case studies to empower responsible fundraising and boost operational efficiency.”

‐ Shawn Olds, Co‐Founder, boodleAI

“Nonprofit leaders should race to read this essential nonprofit AI playbook and empower their teams to rapidly adopt AI technology responsibly and ethically across every nonprofit job to be done. The organizations who put Chappell and Roseknrans's data‐driven AI best practices to work in responsible and ethical ways are the ones who are going to secure the most funding, deliver the greatest mission impact, and establish their program relevance for decades to come.”

‐ Erin McHugh Saif, Chief Product Officer, Microsoft Tech for Social Impact

“Having witnessed the evolution of AI for nonprofits from its earliest stages, it's clear that Nonprofit AI stands out as an essential resource for organizations navigating this new frontier. This must‐read book bridges cutting‐edge technology with the unique needs of the sector, offering actionable strategies that prioritize both innovation and ethical stewardship.”

‐ Salvatore Salpietro, Chief Community Officer, Fundraise Up

“This groundbreaking work by Chappell and Rosenkrans delivers exactly what today's nonprofits need: a practical blueprint for using AI to connect with your community, move them to action, and simplify your operations. It's both visionary and actionable ‐ a must‐read for any organization ready to transform how they deliver social impact.”

‐ Tim Sarrantonio, Director of Corporate Brand, Neon One

“As social and economic inequities deepen, nonprofits must leverage AI to drive impact—but for many, its potential remains out of reach. Nonprofit AI cuts through the hype, offering a clear and practical guide to using AI responsibly to address the very inequities it risks exacerbating.”

‐ Michael Sheldrick, Co‐Founder, Global Citizen & Policy Entrepreneur; Author, From Ideas to Impact: A Playbook for Influencing and Implementing Change in a Divided World

“Chappell and Rosenkrans reveal why embracing AI is not just an opportunity but a mission‐critical imperative for nonprofits, offering an inspiring vision of AI as a tool for service, not just profit.”

‐ Eric Siegel, CEO of Gooder AI and author of “The AI Playbook”

“Nonprofit AI is the ultimate guidebook for social impact leaders looking to harness AI ethically and effectively to drive real change in the world.”

‐ Amber Melanie Smith, Social Impact Expert

“From fundraising and donor engagement to program delivery and impact measurement, Nonprofit AI provides practical guidance for mission‐driven organizations. Whether you're new to AI or an experienced data scientist, this book makes the field accessible and actionable. Thank you, Scott and Nathan, for your passionate leadership!”

‐ Angie Stapleton, Executive Director, Research & Prospect Development, Vanderbilt University

“This guide is a game‐changer for the nonprofit sector. It doesn't just talk about AI—it shows how to use it. With clear examples and practical advice, it equips nonprofits to make data‐driven decisions, engage stakeholders, and scale their impact like never before.”

‐ Bill TeDesco, CEO and Founder, DonorSearch

“In Nonprofit AI, Nathan and Scott provide the definitive guide for nonprofits to bridge the gap between visionary ideas and actionable AI/ML strategies, empowering organizations of any size to predict donor behavior, personalize engagement, and optimize resources for maximum impact. Drawing on over a decade of experience as AI pioneers in the nonprofit sector, they share real‐world case studies, actionable insights, and lessons on change management to help leaders navigate the complexities of innovation responsibly and effectively.”

‐ Jon Thompson, AVP of Philanthropic Strategy & Technology at the Children's Hospital of Philadelphia

“For anyone who believes in the power of technology to amplify human compassion and drive meaningful change, this book is an essential companion. It's not just a guide—it's a call to action for a brighter, more impactful future.”

‐ Tammy Zonker, Award‐winning Major Gifts Expert, Keynote Speaker, and Founder of Fundraising Transformed

Nonprofit AI

A COMPREHENSIVE GUIDE TO IMPLEMENTING ARTIFICIAL INTELLIGENCE FOR SOCIAL GOOD

Nathan Chappell

Scott Rosenkrans

Copyright © 2025 by John Wiley & Sons. All rights reserved, including rights for text and data mining and training of artificial intelligence technologies or similar technologies.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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To the amazing humans who wake up each day with a desireto make the world a better place, armed with the courageand curiosity to amplify their mission with AI.

Our Commitment to Responsible and Beneficial AI in Writing Nonprofit AI

In writing Nonprofit AI: A Comprehensive Guide to Implementing Artificial Intelligence for Social Good, we sought to blend our collective 30+ years of experience in the nonprofit sector with the very tools we advocate for in this book. Generative AI played a supporting role in this process—not as a replacement for our insights, but as an amplifier of our expertise. By leveraging AI, we were able to organize complex ideas, explore diverse perspectives, and refine our messaging to resonate with the needs of nonprofit professionals.

We approached this collaboration with care, ensuring every AI‐assisted contribution was rigorously reviewed, edited, and supplemented by our deep knowledge of philanthropy, technology, and ethical leadership. Our goal was to demonstrate, through the creation of this book, how responsibly using AI can enhance—not diminish—human creativity, experience, and judgment.

This transparency reflects the ethos of responsible and beneficial AI adoption we advocate for throughout these pages, and we hope it serves as an example of how technology can support, rather than replace, the humanity at the heart of nonprofit work.

Introduction

“The landscape of American generosity is marked as much by decline as it is by increase. In recent years, surveyors of that landscape have begun to give as much attention to decline as to growth” (Soskis, 2024). The persistence of these undercurrents signals that doing things the same way will not meet today's challenges.

Now, More than Ever

The nonprofit sector is an indispensable pillar of the global economy, contributing significantly to societal well‐being and economic stability. Collectively, nonprofits and NGOs manage trillions of dollars in economic activity and employ tens of millions of hard‐working professionals worldwide. These individuals and the mission‐centered organizations they serve fill critical gaps that neither governments nor corporations can address alone, often acting as the thread of decency, love, and hope that together bind the fabric of society. Their contributions range from providing essential human services to protecting the planet, reducing inequalities, and educating future generations to fostering community resilience and beyond, making them essential agents of change in an increasingly complex and interconnected world.

Amidst a backdrop of fractured societies, declines in civic engagement, government stand‐offs, and an escalation of humanitarian crises of seemingly every variety, the need for nonprofit services has never been greater. Yet, the sector stands at a pivotal moment marking the urgency for rapid innovation more pronounced than at any time in history.

Exacerbating an ever‐increasing demand in nonprofit services is a sobering reality that in many developed nations, the number of people donating to or volunteering with nonprofits has seen systemic declines, making the delivery of mission‐critical initiatives increasingly challenging.

In a period of dramatic societal and technological change, doing things the same way will not enable the nonprofit community to support the humanitarian demands of this or future generations.

Yet, despite the confluence of headwinds facing the modern nonprofit ecosystem, there is great reason to maintain a hopeful and even optimistic stance about the sector's ability to solve many of humanity's greatest challenges with greater speed, precision, and efficiency than ever imagined.

While the advent of artificial intelligence (AI) is anything but new, the recent explosion of accessible and affordable AI heralds a pivotal shift, opportunity, and responsibility to rethink every facet of nonprofit work. The significance of this moment cannot be oversold. It’s our firm belief that the future of the nonprofit sector will depend largely on how swiftly and responsibly the organizations themselves accept or reject this technological milestone. How much and how well the nonprofit sector embraces AI will determine the speed and degree by which the digital divide becomes a digital chasm. There is little doubt that the winners of the digital divide will be represented by organizations that adopt new technologies to support their mission, while the losers will be those that do not. Ultimately, the success, consolidation, or dissolution of underperforming nonprofit organizations will lead to a more streamlined yet less diverse philanthropic landscape, making an immeasurable impact on humanity at large.

AI Adoption Is Not Enough

While AI adoption is inevitable, responsible and beneficial use of AI is not.

As the landscape of charitable giving undergoes significant shifts, understanding and leveraging AI technologies to amplify nonprofit missions becomes crucial for sustaining and enhancing organizational efforts. AI's increasingly broad role in supporting nonprofit success will pave the way for more strategic and precise philanthropic endeavors. To successfully navigate this tectonic shift in nonprofit business, mission‐oriented organizations must not trivialize the vastness of AI's potential, but also be mindful to leverage this breakthrough technology in ways that are responsible and beneficial. As guardians of public trust, nonprofit organizations must prioritize the beneficial utilization of AI while maximizing immediate impact and safeguarding the long‐term sustainability of the sector. In this dynamic environment, this book serves as an essential guide for any nonprofit professional, leader, volunteer, donor, or advocate seeking to execute and amplify their nonprofit mission in an algorithmic world.

The nonprofit sector, often constrained by limited resources and funding, stands to benefit immensely from the efficiencies and capabilities that AI can provide. However, the transition to becoming an AI‐first nonprofit is not without its challenges. This book addresses these challenges head‐on, offering practical tools, case studies, and templates designed to facilitate a smooth and effective AI transformation.

Drawing on our collective 30 years of nonprofit experience and global leadership on the responsible and beneficial use of AI within a nonprofit orientation, this book is crafted to serve you and your organization well. Nonprofit AI: A Comprehensive Guide to Implementing Artificial Intelligence for Social Good is not just a theoretical exploration of AI technologies. It is also a practical handbook to equip nonprofit stakeholders with the knowledge and tools to successfully navigate the AI transformation. The book provides actionable tools that can be readily applied to various aspects of nonprofit operations. From fundraising and donor management to program delivery, operations, and impact measurement, readers will find resources that can help them integrate AI into their daily activities.

Learning from the experiences of others is invaluable. This book includes numerous case studies from diverse nonprofit organizations that have successfully implemented AI solutions to best support their mission. It also takes forensic audit to the myriad reasons why others have failed. Learning from these real‐world examples offers insights into best practices, common pitfalls, and innovative approaches that can inspire and guide other organizations on their AI journey. To further support those embarking on their AI transformation, this book offers a variety of tips and resources that can be customized to meet the specific needs of different organizations, covering strategic planning, project management, data governance, and more, providing a solid foundation for AI initiatives.

Imagine a future where nonprofits can predict donor behavior with remarkable accuracy, personalize engagement strategies to resonate deeply with supporters, and optimize resource allocation to achieve maximum impact. This is not a distant dream but a near‐term reality achievable through AI. As you immerse yourself in the chapters ahead, you will discover how AI can be harnessed to amplify your mission, drive efficiency, and foster innovation.

The accelerated adoption of AI in the nonprofit sector is not merely an option; it is an imperative. As we look toward a future influenced by algorithms, it is clear that those who embrace these technological advancements will lead the way in creating more effective, efficient, and impactful organizations.

In an era where the need for innovation is paramount, this book stands as a beacon, lighting the path toward a future where technology and social good work hand in hand to create a better world for all. Your investment of time in reading through these pages promises significant returns, empowering you to scale your mission and amplify your impact through the thoughtful, responsible, and beneficial integration of AI technologies.

AI Transformation Is a Journey, Not a Destination

As you embark on this journey, remember that innovation is not just about adopting new technologies; it is also about embracing a mindset of continuous improvement, curiosity, collaboration, and courage. The future of the nonprofit sector is being written today, and with AI as your ally, there are no limits to what we can achieve together in support of a more equitable world for this and future generations.

1The Need for Innovation in the Nonprofit Sector Has Never Been Greater

What Got Us Here Won't Get Us There: The Nonprofit Sector at a Crossroads

As we stand on the precipice of a new era shaped by unprecedented technological advancements and global challenges, the imperative for innovation in the nonprofit world has never been more critical, nor more laden with potential for transformative impact.

Nonprofits and artificial intelligence (AI) are a match made in heaven. There's no industry that works harder, with constrained resources, delivering tremendous impact, than the nonprofit sector. The return on investment (ROI) of AI has been proven time and again through numerous studies, often involving A/B tests with diverse groups. Whether it's college students or white‐collar professionals, those who incorporate AI into their work consistently perform better, faster, and with higher satisfaction, not only helping to combat burnout—a challenge endemic in the nonprofit sector—but also enhancing overall efficiency, improving decision‐making, and enabling a deeper focus on creative, mission‐critical tasks (Microsoft, 2024). By taking on repetitive and administrative duties, AI frees up nonprofit professionals to concentrate on strategic initiatives, innovation, and cultivating meaningful donor relationships, ultimately amplifying their ability to create impact.

The nonprofit sector, a cornerstone of civil society, finds itself at a pivotal crossroads. On one hand, the need for its services has never been greater, with global crises multiplying, inequalities increasing, and societal factions deepening. On the other, the sector faces a combination of factors that threaten its traditional modes of operation and funding. This chapter explores the multifaceted landscape in which nonprofits now operate, the modern challenges they face, and the urgent need for innovation—particularly through the lens of artificial intelligence—to not just survive, but thrive in this new reality.

The Nonprofit Sector: A Pillar of Global Economy and Social Well‐being

Before exploring the myriad challenges and opportunities that lie ahead, it's crucial to understand the vital role the nonprofit sector plays in our global society and economy. Far from being peripheral, nonprofits and NGOs collectively manage trillions of dollars in economic activity and employ tens of millions of dedicated professionals worldwide.

“Nonprofits are the hands that catch people when they fall through the gaps.”

—Randima Fernando, Center for Humane Technology (Fundraising.AI, 2025, 21:45)

These mission‐first organizations fill critical gaps that neither governments nor corporations can address alone. From providing essential human services to protecting the environment, from educating future generations to fostering community resilience, nonprofits often act as the thread of decency, compassion, and hope that binds the fabric of society together.

Consider, for instance, the role of nonprofits in disaster relief. When Hurricane Katrina devastated New Orleans in 2005, nonprofits like the Red Cross and Habitat for Humanity were on the front lines, providing immediate aid and long‐term rebuilding assistance. Similarly, during the COVID‐19 pandemic, food banks across the nation scaled up operations dramatically to meet surging need, with Feeding America reporting a 60% increase in food bank users (Feeding America, 2022). Innovative nonprofit organizations like The Farmlink Project swiftly emerged to close the gap between the farmers with surplus food who lacked transportation and food banks with mile‐long lines of hungry families.

The economic impact of the sector is equally significant. In the United States alone, nonprofits contribute approximately $1 trillion to the economy annually, comprising 5.6% of GDP (International Monetary Fund, 2023). Globally, the nonprofit sector is the third‐largest employer, behind only retail and manufacturing. These statistics underscore the immense responsibility and potential impact that rests on the shoulders of nonprofit organizations.

The Confluence of Circumstances: A Perfect Storm for Nonprofit Innovation

Despite their crucial role, nonprofits find themselves navigating increasingly turbulent waters. An alignment of conditions has created a perfect storm that demands rapid and thoughtful innovation. Let's examine these factors in detail.

Global Pandemic: A Catalyst for Change

In many ways, the COVID‐19 pandemic acted as an unprecedented catalyst for change across all sectors, but its impact on nonprofits has been particularly profound.

The pandemic’s sudden onset exposed both the vulnerabilities and the potential of nonprofits in the information age. Organizations on the path to digital transformation found themselves better equipped to handle the crisis, ready to mobilize human and capital resources to areas of the greatest need, while those relying on traditional methods struggled to adapt.

While many nonprofits traditionally relied on in‐person gatherings to raise funds for their causes, the pandemic forced a dramatic shift in strategy. Organizations across the sector quickly pivoted to virtual events and digital fundraising, embracing technology to maintain engagement and sustain their missions. Despite the challenges posed by restrictions on group gatherings, this swift adoption of digital formats enabled many nonprofits to continue generating significant support and making a meaningful impact during an unprecedented time.

However, the pandemic also exacerbated existing inequalities within the sector. Many smaller, community‐based organizations lacked the resources to make rapid digital transitions, highlighting the need for sector‐wide support and innovation to ensure that all nonprofits can thrive in the digital age.

Financial Uncertainty: A Convergence of Macro Economic Factors

The economic fallout from the pandemic, coupled with ongoing geopolitical tensions, created a climate of financial uncertainty for nonprofits. According to the 2021 Nonprofit Finance Fund State of the Nonprofit Sector Survey, 88% of nonprofits reported that financial uncertainty was a significant challenge (Nonprofit Finance Fund, 2021).

This instability is compounded by changing patterns in philanthropy. The continued rise of donor‐advised funds, impact investing, and newer forms of giving, like cryptocurrency donations, are reshaping traditional funding models. Highlighting the gravity of this significant shift, The Giving Block, a crypto donation platform, reported a 1,558% increase in crypto donations from 2020 to 2021 (The Giving Block, 2022).

While these new funding streams offer exciting opportunities, they also require nonprofits to adapt quickly and develop new skills. Organizations must now be fluent not just in traditional fundraising methods, but also in emerging data‐fueled technologies and strategies.

Moreover, the economic uncertainty over the past decade has led to increased scrutiny of nonprofit financials. Donors, both individual and institutional, are demanding greater transparency and efficiency in how their contributions are used. This pressure, while challenging, also presents an opportunity for nonprofits to innovate in their financial reporting and impact measurement practices.

Technological Advancements: The Double‐Edged Sword

The rapid pace of technological advancement offers immense potential for nonprofits to increase their impact. Artificial intelligence, big data analytics, blockchain, and other emerging technologies promise to revolutionize how nonprofits operate, from fundraising to program delivery.

Consider the success of charity: water in leveraging technology. Their use of remote sensors to monitor water projects in real time improves their operational efficiency and provides donors with unprecedented transparency. This level of real‐time impact reporting is setting new standards in the sector.

However, as Gabe Cooper and Mckenna Bailey (The Nonprofiteers, 2020) argue in Responsive Fundraising, these advancements also raise the bar for donor expectations, creating a digital divide between technologically savvy organizations and those still relying on transactional engagement efforts. The risk is that this divide could lead to a concentration of resources in a smaller number of tech‐enabled nonprofits, potentially reducing the diversity of the sector, thus decreasing the intrinsic democratic nature of the nonprofit sector overall.

The ethical implications of these new technologies cannot be ignored. While AI promises tremendous opportunities to amplify nonprofit mission, it also brings concerns about data privacy, algorithmic bias, and the potential for dehumanizing relationships between nonprofits and their constituents. Nonprofits must grapple with these ethical considerations as they adopt new technologies.

Changing Donor Expectations: The Demand for Personalization and Impact

Today's donors, particularly millennials and Gen Z, expect a level of personalization and impact transparency that was unheard of a decade ago. Mallory Erickson (2022), in her work on nonprofit leadership, emphasizes the shift toward donor‐centric fundraising, where supporters expect to be treated as partners rather than mere checkbooks.

This shift is evident in the rise of peer‐to‐peer fundraising platforms and the success of giving days like GivingTuesday, which helped nonprofit organizations generate $2.7 billion in the United States alone in 2021 (GivingTuesday, 2021). These trends underscore the need for nonprofits to innovate in how they engage with supporters, moving beyond transactional relationships to create meaningful, personalized connections.

Nonprofits must not only do good work, but also demonstrate their impact in concrete, data‐driven ways. The demand for impact transparency is equally pressing. Donors increasingly demand to see measurable results from their contributions.

Increasing Competition for Connection: Breaking Through the Noise

In an era of information overload, nonprofits face intense competition for attention, not just from other causes, but from the entirety of the digital landscape. This challenge is particularly acute on social media platforms, where algorithm changes can dramatically impact a nonprofit's reach. Organizations like the American Civil Liberties Union (ACLU) have responded by adopting a multi‐channel, content‐rich approach, using everything from Instagram stories to podcasts to engage different segments of their audience (American Civil Liberties Union, n.d.).

The competition for attention also extends to the fundraising realm. With so many worthy causes vying for support, nonprofits must find innovative ways to tell their stories, secure volunteers, and demonstrate their unique value proposition to those who could benefit from their services. This requires not just compelling narratives, but also sophisticated use of data and technology to reach the right audiences with the right messages at the right time.

If the ROI of AI weren't impressive enough, consider these numbers. A recent study showed 74% of nonprofit employees are looking for or considering a new job within the year, with 65% unsure if they would continue to work in this sector (The Nonprofiteers, 2024). The primary reason: too much responsibility and not enough support. Nonprofit employees are continually on the brink of burnout. However, this trend can be reversed by leveraging AI to do more creative work quicker and feel better about it, keeping nonprofit employees satisfied and continuing to do good.

The Generosity Crisis: A Sobering Reality

Exacerbating the challenges outlined in the preceding section is a sobering trend: in many developed nations, the number of people donating or volunteering with nonprofits has seen systemic declines. This “generosity crisis” is making the delivery of mission‐critical initiatives increasingly challenging.

In The Generosity Crisis, authors Chappell, Crimmins, and Ashley (2022) explored how the percentage of U.S. households giving to nonprofits fell from 66% in 2000 to less than 50% by 2018, making givers a minority in the United States for the first time in American history. This phenomenon, often manifested as “dollars up, donors down,” highlights a paradox where total donations are sustained, but the donor base is shrinking. This concentration of giving, volunteering, and advocating among a smaller number of individuals creates a fragile system that is vulnerable to economic volatility.

The volunteerism crisis is equally concerning. According to AmeriCorps (2023), formal volunteerism in the United States dropped from 30% in 2019 to just 23% in 2021, marking the steepest decline in decades. This shortage is further straining nonprofits, especially small, community‐based organizations that depend heavily on volunteer labor.

Several factors contribute to this generosity crisis:

Changing societal norms and decreased community engagement and civic engagement

Economic pressures, including rising costs of living and stagnant wages

Shifting generational attitudes toward philanthropy

Information overload by the increased number of nonprofit organizations leveraging multiple channels, subsequently leading to compassion fatigue

Decreased trust in institutions, including nonprofits

Changes in tax incentives and government involvement

Declines in religious participation, which traditionally serves as a place where new generations learn the roles, responsibilities, and virtues of giving back

The dramatically increased role that algorithms play in capturing and steering attention toward their specific purpose

Competition with for‐profit entities, with robust research and development budgets to leverage big data and AI

This is not a comprehensive list; the generosity crisis is exacerbated by myriad factors. This crisis underscores the urgent need for nonprofits to innovate in how they engage supporters, build trust, and demonstrate impact. Traditional methods of fundraising and volunteer recruitment are no longer sufficient in this changing landscape.

The Imperative for Innovation

As management guru Peter Drucker (1985) wisely noted, “The greatest danger in times of turbulence is not the turbulence itself, but to act with yesterday's logic.”