Artificial intelligence (AI) could help charities strengthen relationships with their donors and volunteers rather than replace them, according to a new editorial in the Stanford Social Innovation Review co-authored by UCL School of Management’s Assistant Professor Angela Aristidou.
Writing with the Deputy Director of Philanthropic Partnerships at the Gates Foundation and the CEO of volunteer engagement platform Golden, Dr. Aristidou argues that rather than turning away from AI, charities should embrace it as a strategic tool to enhance engagement, improve fundraising outcomes and increase their social impact.
Public and organisational concern around AI adoption often centres on the idea of AI replacing human and humane practices and connection, but this does not have to be the case if used appropriately, say the article’s authors.
Speaking about AI adoption in the non-profit and charity sector, Dr. Aristidou said:
“Non-profit leaders can be reluctant to employ AI in their organisations because human connection is so important to their work. However, AI doesn’t have to be a tool that replaces that connection or creates an artificial relationship.
“One way that AI can boost a charity’s fundraising efforts is through donor retention. First time donor retention rates are at around 20-30%, and research has shown that repeat donors are far more valuable over time. Improving transaction experiences and streamlining digital journeys could help to boost retention rates, in turn boosting charity funds.”
AI is most effective as an optimisation tool and the authors suggest five ways to successfully leverage AI into a non-profit organisation:
-
Experiment with personalisation at scale, using AI to tailor donor engagement to individual preferences.
-
Leverage predictive AI for donor retention, to predict which donors are at risk of disengaging and provide insights on how they can be re-engaged.
-
AI-enhanced cause matching, bringing donors to causes that resonate with them.
-
Optimise giving experiences with AI-powered fundraising campaigns, microgiving and crowdfunding, analysing past campaigns and optimising future ones to boost performance.
-
Deploy AI chatbots for donor support and engagement, for instant 24/7 support on questions and facilitating donations.
Co-author Sam Fankuchen, founder and CEO of Golden, a for-profit company that supports NGOs and non-profit organisations with volunteer management, said:
“Today’s philanthropic AI has unlocked an era of converting idle donors to active collaborators, accelerating progress towards accomplishing non-profits’ missions.”
The authors add that AI tools, on their own, do not inherently strengthen or erode human relationships and that their full impact depends entirely on how they are used. According to the article, non-profit organisations should take care to use AI tools ethically and abide by four principles:
They should establish clear guidelines that prioritise human relationships, continuously seek feedback from donors, use AI to manage tasks rather than relationships, and prioritise transparency and trust when using AI.
Speaking about the future of charities and AI, co-author Andrew Dunckelman, from the Gates Foundation, said:
“The next wave of mission-driven impact will be led by organisations using AI to strengthen, not replace, human connections.”
