Is AI the Next Best Thing for Fundraising?

If you have an investment in AI, you are not alone! Estimates on the amount invested in AI in 2025 is $1.5 trillion, which suggests that it is one of the best opportunities in history or one of the biggest potential busts in the 21st century.

But if you are in the not-for-profit world, especially if you are engaged in fundraising, you have a simpler question — does/will AI work to raise more funds to justify organizations getting AI tools?

The software is free or near discounted, but if you go for a custom job, it can run into the tens of thousands. But there is a cost to getting new software, as every not-for-profit knows. It takes time to train staff and to use it effectively. Getting a “plain Jane” CRM takes enormous energy to convert from one software to another. AI does not guarantee it will take less time.

And then there is the peculiarity that has now become overwhelming to all not-for-profits — 80-90% of your gifts will come from major donors, not from mail or email or social or any other low-end generation. And guess what? — Major donor demand face time! And not just for the “ask”, but for the full cycle of maintenance, both before and after the gift has been made.

And that begs the question — how does AI fit into such a system? Yes, you can generate thank you and follow-ups, but any good major gift officer knows how to craft such a response. And yes, AI can sometimes find hidden potential major donors in your lists, but you need the human to open the door and keep the door open to such hidden gems, and to open and close the gift.

Capital campaigns and endowments are especially focused on the one-on-one solicitation and maintenance approach. I don’t see how AI can change these dynamics, where the donor expects — requires! — that they speak to humans, the higher up the organization’s command, the better!

And don’t try AI with foundations! They will tell you point blank that your approach will not be accepted if they discover it was generated or written by AI. This isn’t college, the foundations will say “No!” and may close the door to any further attempts from you if you are marked as an AI junkie.

So I suspect that the smart not-for-profit will approach will be to using AI where the human touch isn’t so important — CRM maintenance and search capacities; low maintenance communication; small gift requests via direct mail, email, social media; special event invitations and rsvp generation.

For major gifts, unless the upcoming generations will be truly comfortable with AI, the human being will still be necessary, because other human beings will demand it. And no, this article was not written by AI! You can contact me about it and still get a human!

With my move to Pennsylvania—and a little break called the Covid19 Pandemic—my opportunities to do live presentations dwindled. We all became very familiar with ZOOM and its capacities and capabilities—and we all have gotten a little tired of it.

Now, I am doing live presentations again, starting with a luncheon get-together with the AFP-NEPA Chapter (Northeast Pennsylvania) on Friday, March 22.

Picking up on the work I used to do with the AFP Connecticut chapter and with other AFP programs, I will be speaking about how to use planning as a tool to engage staff, volunteer leaders, and donors in the “team sport” we call fundraising.

“Refreshing Your Campaign Planning” is aimed at directors of development and all fundraising staff that they cannot fall into the “hamsters on a wheel” syndrome—constantly running in place to raise funds—without getting exhausted and failing to engage more people in the process.

By using a directed planning approach, fundraising professionals can review their work through more than the “how much money did I raise” lens and understand both the quantitative as qualitative effect of their efforts—and get more people on board to join in and make fundraising more effective and enjoyable.

If you are in the NEPA area, I urge you to check with AFP-NEPA (https://www.afpnepa.org) how you can join us at the luncheon. If you are out of the area, please check with the AFP-NEPA chapter to see if this session will be on ZOOM and whether/how you can participate.

Hope to see you there!

If I told you that the Covid pandemic changed things, you wouldn't be surprised. This was true for Real Fundraising.

If I told you that the Covid pandemic changed things, you wouldn't be surprised. This was true for Real Fundraising.

We moved out of Connecticut, we did work for internationally-based organizations, got much more active in the art world, and expanded our remote work dramatically.

And yet, in the not-for-profit world, even as things changed, the need to raise funds did not! Thus, Real Fundraising finds that the call for our services is just as intense as it has ever been, but how the work is done has changed.

We are still available to those needing an experienced firm able to work on capital needs, endowment issues, and annual campaigns, in hybrid settings and remotely, using face-to-face solicitation methods and electronic means. We even have the capacity to prepare communications materials, from feasibility studies to annual reports to newsletters and thank you letters.

Please reach out to us for your fundraising needs, wherever you are located!

Real Fundraising provides non-profit organizations with "real time" solutions to real problems and challenges, with special emphasis on fundraising.