Investment, training and transparency needed in fundraising AI adoption

UK fundraising experts have published a report which is “intended as a first point of call” for fundraisers looking to safely implement AI in their work.

Shaping the Future of Fundraising with AI was published earlier this month at the Chartered Institute of Fundraising (CIOF)’s annual Fundraising Convention. Based on surveys and interviews with 100 fundraisers, it is published jointly by the CIOF and the University of York’s Research Centre for Digital Innovation in Philanthropy and Fundraising (CDIPF).

Of those surveyed, 47% are currently using AI in some form in their work, with 62% of those saying it has helped improve their written communications.

 Budget advice

A third (37%) of survey respondents say that their organization spends less than £1,000 per year on AI, while 31% don’t know how much is spent. The report says that while it may be “tempting” to try to adopt free AI tools and digital innovations, it will require investment to ensure they are used effectively. It advises:

“Fundraising leaders need to evaluate where in the development of their fundraising practice AI can make the greatest impact and add the greatest value for their donors and their beneficiaries.”

This is likely to include training – three-quarters of respondents, regardless of whether they are using AI or not, say that they lack knowledge of this technology, while only 37% of respondents have received relevant training in the past year. However, the sector also feels there is a lack of trusted sources of training, sector guidance and best practice cases, the report says.

While AI adoption was sometimes portrayed as a generational issue, with younger fundraisers more keen or able to pick up AI tools, one fundraiser cautioned against this view. They told the researchers:

“We have an amazing young workforce who are digitally native, and I think they’re very excited. But no, they haven’t got a clue how to do this, or how we can best do this in a fundraising context.”

In addition, 60% of all respondents recognised three or more different risks or concerns around its use – and just 5% say that they see no risk at all. Fundraisers already using AI were more likely to see risks than those not using it.

Risks aplenty

The three most commonly-cited risks were data bias; ethical concerns (cybersecurity risks, privacy & data breaches); and keeping pace with legal and regulatory requirements.

The report says that there is still work to be done on these as a sector, noting:

“Complex issues such as the responsible handling of donor data, legal and regulatory compliance, and the implications of microtargeting can be difficult for the sector to navigate. There is a real need to develop more transparent and consistent AI-powered fundraising approaches cognisant of the human rights implications of emergent technologies and data-driven processes.”

Dr Marta Herrero, lead researcher and director of the CDIPF, hopes the report will give fundraisers confidence to begin tackling those points, saying:

“We want fundraisers to feel confident about using AI, feeling that they understand what it can do well, the challenges it poses, and – most importantly – that they trust in their own abilities to identify how they can use the tools responsibly for the benefits of the communities and donors they serve.”

Ceri Edwards, executive director of engagement at the CIOF and EFA president, added:

“As a sector, I believe we can work together to shape a future where AI enhances the impact of fundraising efforts, driving positive change in our communities for years to come.”