Nonprofit Pulse 2024 report launches with a special focus on AI

Today (April 10) sees the launch of the Nonprofit Pulse 2024 report, which reveals the biggest challenges and opportunities for nonprofits across Europe and how they are responding. For the first time, the report also includes a special focus on the development of AI.

The report, by the European Fundraising Association in partnership with the UK’s Chartered Institute of Fundraising and Salesforce, is based on a survey of 671 senior representatives of nonprofit organisations from 20 nations across Europe, conducted in November 2023. It shows how the ongoing economic crisis means nonprofits across Europe are doing more with less, with service demand and workload both rising, and a tight squeeze on donations and funding.

Challenges & opportunities

Just 6% of the respondents reported being unaffected by the cost of living crisis, with a fifth (20%) concerned about the future, citing workload, raising sufficient funds, and supporting staff and their wellbeing as their biggest issues.

Once again however, nonprofits are facing their challenges head on, with many seizing the opportunities available to them in response – from advances in technology and AI, to greater collaboration between organisations.

Rob Cope, executive director, membership & operations, Chartered Institute of Fundraising, says:

“The nonprofit sector is currently facing its biggest collective set of opportunities, challenges and risks in our lifetime. It’s a perfect storm of rising demand, growing workload and squeezed income that means together, as a sector, we must answer the big question of how we can all do more with less. One of the most exciting areas of opportunity has to be in new technologies and AI, which is a critical lever of change that we cannot ignore.”

Development of AI

The report’s focus on AI delves into how nonprofits are using it, or planning to, and their view on its opportunities and the challenges around its use. Also included are recommendations for getting started with AI, and commentary on this and other key report findings from fundraising experts.

Key findings

Easing of pressure but biggest challenges remain

2023’s survey suggests some easing of pressure from 2022 with percentages dropping in many areas of concern, however:

• 28% of those surveyed saw demand for services increase, while 28% saw income from donations fall, and 26% experienced a drop in supporter numbers.
• 20% had to use their reserves, while 28% let staff go, and workload along with staff wellbeing were key issues for 37% and 26% respectively.

Sector’s response to challenges

In response to the challenges, 2023 saw fundraising strategy remain unchanged for just 8% of nonprofits with the vast majority responding through a variety of means:

• Almost a quarter (23%) focused on further digital development and channel diversification.
• Collaboration was mentioned for the first time since tracking began in 2015 as a top area of focus, with 22% working more with other nonprofits.

Fundraising: in-person activity reignites alongside further growth in digital

Reliance on digital continued to grow in 2023 for Europe’s nonprofits and their donors:

• 19% acquired more supporters through social media and 17% through online events.
• The most popular channels for fundraising and engagement were social media (51% of respondents), website (47%), and email (46%). At the same time, in-person activity rose with face to face the fourth most popular channel (39%).

Focus on AI

Gauging nonprofits’ current sentiments on using AI, the research found:

• 13% were excited and already using AI, and 22% ‘optimistic but cautious’, while 15% said they didn’t see their organisation using AI at all.
• Key concerns for both Generative and Predictive AI were data security and privacy, loss of human expertise and job displacement.

Lori Freeman, VP & GM of nonprofits, Salesforce, says:

“AI represents a tremendous opportunity for nonprofits of all sizes, and will be the key to reducing workloads for overburdened staff, improving fundraising outcomes, accelerating mission impact, and so much more. But, successful adoption in the sector depends on the use of trusted AI that can help nonprofits safely take advantage of their data with confidence. By embracing AI and educating employees on how to use it in a trusted and ethical way, nonprofits have a once-in-a-generation opportunity to modernise their operations and impact.”

Commenting on the report, Charlotte Rydh, president of the European Fundraising Association (EFA) and secretary general of Giva Sverige in Sweden, says:

“There is immense value in working together and sharing expertise and experience. This is something that is echoed in this year’s survey findings, which show rising collaboration between nonprofits. Having this pan-European view of the nonprofit sector, with its trends, challenges and opportunities, also helps us all by enabling individual nonprofits to benchmark, and by providing valuable insights that national fundraising associations, networks like our own, and others supporting the sector, can use to inform our work.”

The full Nonprofit Pulse 2024 report and its findings can be downloaded for FREE. A webinar panel discussion on the findings will follow in May with details to be announced.