Philanthropy and Technology: How AI is transforming Charitable Giving and the Nonprofit Landscape

Philanthropy and Technology: How AI is transforming Charitable Giving and the Nonprofit Landscape 

In an era where technology, particularly artificial intelligence (AI) and machine learning (ML), is reshaping every facet of our lives, it’s no surprise that the world of philanthropy is also undergoing significant transformation. There have been significant philanthropic dollars spent toward studying, advancing, and setting up responsible AI over the last decade. For example, foundations like The Ford Foundation, Rockefeller Foundation, and MacArthur Foundation have committed nearly $1 billion to this work. Most recently, with the rise of Generative AI and the release of popular applications like Chat GPT to the public in the last two years, it has become even more mainstream, creating many new opportunities for the philanthropic sector.

These innovations are providing new tools and methods for donors to maximize their impact, ensure transparency, and enhance the efficiency of charitable giving. For nonprofit organizations that leverage AI to strengthen their processes, it is helping them be more efficient, which ultimately allows for more resources to focus on their mission and deliver impact. In addition, many innovative organizations are also going a step further by creating AI-powered solutions to address complex global issues. 

‍Applications of AI for Nonprofits

The average nonprofit organization is already using AI in some form. According to a 2024 Google.org survey of 4,600 nonprofits around the world, more than half reported that at least some of their employees use AI, mostly for drafting content for fundraising and communications. Specific use areas include:

• ‍Fundraising & Development
  AI-powered predictive analytics can analyze vast amounts of data to identify trends and predict outcomes. This can improve nonprofit fundraising and development because it allows for the personalization of donor experiences by analyzing individual preferences, characteristics, and behavior patterns. Nonprofits can use this information to tailor their communications and engagement strategies, making donors feel more connected to the causes they support. For example, AI can recommend specific projects or initiatives based on a donor’s past giving history and interests or power virtual reality experiences to immerse donors in a particular issue area or region. It can also help streamline fundraising campaigns by targeting potential donors who are more likely to donate. There are new programs like Grant Assistant or Fundwriter.ai that help fundraisers save time drafting grant proposals. These enhancements allow staff to focus less time on administrative tasks and more time developing meaningful donor relationships—a skill that technology is not able to do.
• Impact Measurement
  Nonprofit organizations can collect and analyze data better by utilizing AI to provide more detailed insights into the effectiveness of their programs. This in turn, can enable philanthropists to better understand the impact that they are supporting and encourage them to do more. By leveraging better data, donors can allocate their resources more effectively, ensuring their contributions make a substantial difference.
• Operational Efficiency
  Nonprofits (and their donors) are very conscious of how they’re allocating their grant dollars and staff time but often need to spend significant resources on operational tasks. AI can automate many of these repetitive tasks, freeing up valuable time and resources that can be redirected towards high impact work that furthers their mission. This not only increases efficiency but also enhances the overall effectiveness of the organization.‍

Although cost is no longer a primary barrier to entry for nonprofits to utilize AI tools, there are still issues preventing these organizations from using it and it is up to each organization to invest their time and capacity into making the most out of the technology available. For example, 64% of the respondents in the Google.org survey stated that the main challenge deploying the technology was because of the lack of familiarity and its use cases, followed by selecting which tools to use and implementation (62%), lack of funding to support AI use (51%) and training of staff (50%).

Fortunately, efforts to support nonprofits with funding and training to upskill staff to advance their capabilities are underway. Many have partnered with tech companies like Google or Amazon Web Services (AWS) to support them with this effort. For example, this past month, Google.org launched a $20 million accelerator for 21 tech-savvy nonprofits that will receive training, funding, and free consulting from experts at Google to help expand their use of Generative AI. Other funders may consider how to support nonprofits to take advantage of AI-powered tools through rethinking grantmaking priorities as well. ‍

AI for Good

Outside of the day-to-day applications of AI, nonprofits are also seeking to utilize AI to find new, innovative ways to approach the big problems they are tackling in the world across healthcare, education, the environment and more. One exciting example of an advanced application of AI with high impact that the Google.org accelerator is supporting is Jacaranda Heath. Jacaranda Health is enhancing the quality of maternal and newborn care in Sub-Saharan Africa, scaling support to mothers who live in underserved areas using Natural Language Processing (NLP) that has been trained in Swahili. They developed an AI-enabled digital health service (PROMPTS) that supports mothers seeking care with timely, clinically accurate information and lifesaving advice through SMS messaging by using behavioral nudges and a helpdesk to triage health questions. It is the first NLP model that is trained in African languages.

Another organization, The Rocket Learning Foundation, is developing digital communities to support early childhood education in low-income areas across India. They are using generative AI models and machine learning to develop an AI coach that can create localized academic content and personalized curriculums to increase education opportunities and improve learning outcomes for children. 

While these advanced applications of AI and ML to an organization’s mission may not be as widespread yet, it shows the potential for how AI can be applied to help reduce inequities and benefit everyone on a global scale.

Considerations of AI for the Sector

Despite the many ways AI can be used for good, there have also been many critiques of the usage of AI across the philanthropic sector. Just like in any other sector, it is important for organizations to understand the potential biases and risks with AI. A few of those considerations include ensuring AI supports equitable research and design of the technology for the end users, a transparent global information ecosystem and an inclusive economic future.

According to a study by Stanford University’s Institute for Human-Centered Artificial Intelligence (HAI) and Project Evident on US nonprofit organizations current and future use of AI, one of the top concerns about AI that both the grantmakers/foundations and nonprofits had was that it is biased and were unsure how to use it and maintain their organization’s ethical standards. It is important for organizations to develop policies for AI usage to establish norms, protect data privacy, and monitor potential biases. In the same Stanford University HAI study, more than half of the 230 respondents stated they use AI in their work but 78% of nonprofits and 72% of funders did not have an organizational policy guiding AI usage.

As the private sector continues to develop their usage of AI, it will be critical that they, along with philanthropists, tech-forward foundations, and governments come together to ensure that people do not get left behind during this transformational shift. The goal is for AI to help reduce inequities rather than contribute to it. We need to continue training AI models with diverse data sets reflecting the languages and cultural contexts where they will be used.

An initiative born from these considerations, Partnership on AI (PAI), a nonprofit community of academic, civil society, and industry organizations addressing the most difficult questions on the future of AI, recently launched an AI & Philanthropy Steering Committee, to foster increased collaboration, dialogue, and action at the intersection of artificial intelligence and philanthropy. PAI emphasizes the key role that philanthropic organizations play in driving change towards equitable AI because they can engage and collaborate directly with communities which is essential when designing equitable AI solutions.

They have created resources, such as the “Making AI Inclusive: 4 Guiding Principles for Ethical Engagement,” which outlines recommendations for developers, emphasizing early adoption of inclusive strategies and ethics training. Their research also helped to inform the White House Blueprint for an AI Bill of Rights and to strengthen global policy frameworks such as the EU AI Act. By advancing partnerships between nonprofit organizations, technology developers, policy makers and funders, PAI hopes to center the perspectives of historically excluded communities in AI development.

The Future of AI in Philanthropy

As AI continues to evolve, its impact on philanthropy will only grow. These technologies not only enhance the efficiency of charitable giving but also empower donors to make more informed and impactful decisions. By accelerating the nonprofit sector to utilize new technology, they will be poised to thrive in our future AI-driven world and find innovative ways to address social and environmental issues. 

How we approach AI to mitigate the risks it may pose to society while creating opportunities for impact will determine how it will benefit us all. Philanthropy will play a crucial role to help ensure that funding goes toward harnessing technology for good to reduce inequity, remain accessible, and provide services to those who most need it.