Harnessing AI for Successful Fundraising

3rd February 2025

Although artificial intelligence (AI) systems are new to many, they are evolving rapidly and undoubtedly, this technology will play an increasing role in fundraising for charities and voluntary organisations of all sizes. AI is here to stay, and we’d like to help you approach it effectively – but with caution.

This blog explores how to use AI effectively in fundraising, highlighting key benefits and potential risks associated with this approach. With thanks to guidance from the Chartered Institute of Fundraising.

In this blog, we’re discussing:

• Definitions of AI
• AI governance
• Benefits and uses of AI in fundraising
• Pitfalls and risks of AI
• Further information
• Get support with fundraising and income generation

Definitions of AI

There is no universal definition of artificial intelligence, but the following are helpful.

AI technologies are scientific disciplines that can perform tasks we would normally consider to need human intelligence, such as making decisions and producing natural language. It can include machine-based systems that make conclusions and predictions and produce content based on the input of historical data. AI can conduct complex tasks and have varying levels of autonomy. Learn more from the Scottish AI Alliance

Generative AI (or Gen AI), is a type of technology that can create original content such as text, images, video, audio or software code in response to a user’s prompt or request. IBM explains more.

Gen AI tools can be used in fundraising to create social media posts, write bids, summarise reports and generate ideas. It’s user-friendly and often free to use, but it raises questions about ethics, data management and bias. CIOF

Predictive AI is another type of technology that uses statistical analysis and machine learning to identify patterns, anticipate behaviours and forecast upcoming events. Organisations use predictive AI to inform potential future outcomes, causation, risk exposure and more. IBM

Predictive AI tools can be used to improve accuracy in routine fundraising tasks. It can process data, forecast future outcomes and automate processes. However, it is complex to use and requires additional investment in technology and building specialist skills sets, and so presents more of a challenge. CIOF

AI Governance

Before introducing AI technology, charity leaders should understand the implications and plan well ahead. Ideally, organisations should create policies and boundaries on their use of AI and only select AI products that align with their values, ethics and supporter expectations.

Use of all AI tools must have human oversight and be managed appropriately. It’s important that managers understand how the AI tool generates content and where the source material and data comes from.

As with any other fundraising tool, AI should be used in accordance with the responsibilities and standards outlined in the Code of Fundraising Practice. All fundraising activities should support the four values of the Code: legal, open, honest, and respectful.

Benefits and Uses of AI in Fundraising

• Administration: AI is useful for processing basic or routine administration tasks such as invoicing and can also provide automatic updates to data within CRM systems. Some AI packages like Supernormal can help with administration tasks associated with meetings such as taking notes and summarizing main action points. Grammarly can check grammar within text blocks. Conversational AI tools such as chatbots or voicebots can answer simple questions and direct calls.
• Communications: Generative AI tools can be useful to create all types of communication messages that boost engagement and reach. In particular it can provide several distinct variations of draft text blocks. A recent survey by Charity Excellence Framework found that one quarter of charities are now using AI to generate text and content. As the technology develops, charities may need to be transparent about how AI is being used in their communications.
  
  A popular generative AI tool is ChatGPT, often used create options for fundraising content and communications copy and can be used to summarise lengthy documents or produce reports. AI tools can also be used to create imagery, animation and film quickly, for example, Midjourney and DALL-E. However, this technology will raise ethical concerns for charities, particularly where individuals are identified.
• Grant applications: Generative AI tools such as ChatGPT can also be useful to help prepare basic text for grant applications, but it cannot be relied upon entirely to produce a good quality application. Human expertise is essential for this. Some charities have introduced a policy that no content generated by AI can be released without human interaction and approval.
  
  Grant applications written by AI are likely to fail without significant human interaction because AI can generate, “awful applications written in binary, with no heart, no context, no corroboration, and no accountability.” CIOF
• Individual giving: Used with care, AI can also be used to enhance individual giving, particularly for larger charities. Used alongside CRM systems, AI can identify giving patterns among individuals. It can personalise communications, create copy that treats people as individuals, enhance storytelling and can improve the donor experience overall.
  
  In a recent CIOF case study, Pancreatic Cancer UK found that their use of predictive AI in a recent fundraising campaign increased return on investment (ROI), improved efficiency and increased the average value of donations received. However, for smaller organisations with less than 5,000 entries in their supporter database, AI technology is unlikely to produce good fundraising ROI.
• Major donor giving: Research by the Charities Aid Foundation (CAF) found that major donors are more likely to favour the use of AI compared with other types of donors, however major donors are also likely to expect greater transparency on the use of AI.
• Analysis: AI is useful for analysing data and donor records within CRM systems. AI debating functions can be a really useful tool to aid critical thinking.

“It’s good to remember there are no shortcuts to effective and responsible fundraising. While AI can be a useful tool, charities must continue to develop and manage their fundraising strategy; invest in building fundraising skills and capacity in their team; and work really hard to win funding bids and attract donations to their cause. The use of AI is no substitute for skilled, human fundraisers.” June Burgess, GCVS Funding Adviser

Pitfalls and Risks of AI

Rubbish in, rubbish out:

To function effectively, AI tools depend on accurate, reliable and substantial data input. Charities may need to invest heavily to build skills and resources to support this. Bad data informs bad decisions.

Risk: Human employment:

The introduction of AI can be perceived as a threat to charity worker’s jobs. It’s already clear that staff members who know how to use AI effectively in their work have a distinct advantage on those that don’t.

Risk: Data breach:

Charities will need to ensure robust data security to protect personal information and privacy as this will have substantial implications for GDPR. Current advice is not to release any personal data or sensitive information to AI systems.

Risk: Reputation:

Public trust is really important to charities, therefore AI must be introduced and managed really well to ensure trust is maintained. The human touch makes charities special to supporters and needs to be preserved. Consider the potential negative effect AI could have on donor relations. If supporters are used to talking with human beings, how might they react when they discover they’re speaking with a robot? Charities will need to consider how use of AI tools can help to engage donors rather than alienate them.

Risk: Equality, Diversity and Inclusion:

Consider that AI will perpetuate any existing inequality or bias found in source material or data. AI tools may have an inherent bias, for example, ChatGPT uses American language, so will need significant edits to make the text relevant to UK and regional audiences.

AI energy use:

AI tools require a huge amount of power to operate and charities should consider the environmental implications of its use. It’s important to understand where the AI servers are located and energy use is monitored.

Further Information

Resources

Chartered Institute of Fundraising

Charities Aid Foundation
What the Public Think of Charities using AI

Charity Digital
Artificial Intelligence Hub
Also search for “How to Use AI for Fundraising, Jan 2025”

Charity Excellence Framework
AI Benchmarking Survey 2024

Fundraising AI
Framework Toward Responsible AI for Fundraising

National Lottery Community Fund
Using Artificial Intelligence in Funding Applications

Scottish AI Alliance
AI Strategy for Scotland

SCVO
Guide to Generative AI for Scotland’s Voluntary Sector

Get Support with Fundraising and Income Generation

We also offer other resources, advice, support and training on funding, fundraising and income generation. Community groups, voluntary organisations, and some social enterprises in Glasgow can access this support for free. See full information on our funding support page, or contact us at sectordev@gcvs.org.uk.

Our thanks to the Chartered Institute of Fundraising (CIOF) for their detailed guidance. CIOF offers advice on ‘Using AI in Fundraising’ for their members at ciof.org.uk

What’s been your experience of using artificial intelligence?

If you have already used this technology for fundraising in your organisation, how did you get on? To help share useful learning with the sector in Glasgow please contact us on sectordev@gcvs.org.uk.

View this advice as a downloadable resource in our Resource Bank.