How AI is Revolutionizing Non-Profit Organizations

24 October 2024

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AI is not something that is yet to be experienced but is currently being experienced in different industries in the global market. AI gives non-profit organizations the opportunities of how to solve traditional issues and make a huge impact because they are always limited with resources. From the acquisition of donors to the programs that are implemented, or even the fundraising, the use of AI is changing the non-profit organizations in ways that were unimaginable a few years ago.

Revolutionizing Donor Engagement and Fundraising

Fundraising is a key element in non-profit organizations and with the help of AI, the way the organizations obtain and distribute funds is evolving. Whereas conventional fundraising approaches are founded on general solicitations, AI is revolutionizing non-profit fundraising by offering specific approaches. A good example is Greenpeace that leverages on Dataro’s AI tools to improve on their fundraising.

Greenpeace’s AI-Driven Success

Direct Mail Appeals: Greenpeace AU employed AI to optimize their direct mail campaigns. Dataro’s AI-driven predictions achieved a response rate of over 14%, compared to just under 9% with traditional segmentation. This resulted in a potential revenue increase of 23% and over 2,800 individual gifts, versus around 2,500 from traditional methods, despite working with a smaller list of donors.

This chart shows the ROI from each discrete group of donors that were identified in the two mailing lists:

  • Red: Donors chosen using traditional RFM segmentation but not flagged as worthwhile by the machine learning tool
  • Green: Donors selected by Dataro’s machine learning algorithm but not chosen through RFM segmentation
  • Blue: Donors who appeared in both the AI and RFM mailing lists

Reducing Donor Churn: AI also improved donor retention by identifying those at risk of lapsing. Personalized “thank you” calls helped Greenpeace retain 64 donors who might have otherwise dropped off, saving the organization $23,040.

These AI-driven strategies significantly enhanced Greenpeace’s fundraising effectiveness and donor engagement. For a deeper look, explore the full case study here.

Enhancing Program Delivery with Precision and Efficiency: As non-profit organizations are likely financially constrained, it is important that they are efficient. The use of AI can be very meaningful in enhancing the delivery of the program and ensuring that the available resources are properly utilized.

An example of an organization that falls under the category of non-profit organization with focus on disaster management. Thus, the organization can estimate where help is needed most using weather forecasts, social media updates, and ground-level devices with the assistance of AI. For instance, in the 2019-2020 Australian bushfires, Microsoft applied AI in the identification of the fires’ scope and effects by analyzing satellite images and social media posts. It also assisted in the allocation of emergency resources to the areas most in need and offered valuable information for the fighting and alleviation of fires.

Empowering the Use of Data for Decision-Making to Achieve Bigger Outcomes: Think of a healthcare non-profit organization that employs AI in tracking diseases incidences in real-time. For example, the World Health Organization (WHO) uses artificial intelligence in monitoring and analyzing disease trends across the world. AI can predict the outbreaks by analyzing the data from the hospitals, clinics, and public health reports and allocate resources to the most effective interventions.

This real-time data enables timely responses and optimal utilization of resources, which have a direct bearing on the health of the public.

AI is also very crucial in increasing transparency and accountability in the non-profit organizations. For instance, the Gates Foundation uses AI in monitoring and evaluating its programs. AI tools are used to evaluate the impact of such programs as the “Global Health” program by analyzing the data collected by AI tools. These insights assist in establishing the effectiveness of their programs to the stakeholders hence attracting more support and trust.

Optimizing Volunteer and Workforce Engagement: With the help of AI algorithms, the matching of volunteers with opportunities can be enhanced and can be done according to their skills and preferences. For instance, United Nations Volunteers (UNV) use AI in the volunteer recruitment process to assign volunteers to the right positions depending on their qualifications and interests. This not only increases the satisfaction level of the volunteers, but also assigns the volunteers to the right position which they can do best.

AI can help in the distribution of tasks and their coordination to avoid overworking volunteers and at the same time, ensure that all the work is well shared. For instance, the American Red Cross has implemented AI systems to help it to organize and assign volunteers’ shifts. It assists in the management of working hours and distribution of tasks to avoid overworking the volunteers and at the same time ensure that the volunteers are utilized to the maximum.

Ethical Issues in the Management of Artificial Intelligence: AI systems are usually designed to work with the data that contains personal information, which is a crucial issue of privacy. AI practices for non-profit organizations must be designed in a way that data is not exposed to breaches and misuse. For instance, the International Federation of Red Cross and Red Crescent Societies (IFRC) has stressed on the need for strong data protection measures in its AI projects. Maintaining the confidentiality of data is another factor that keeps the supporters and beneficiaries informed and trusting the organizations as they have sound policies and follow international data protection guidelines (IFRC, 2024).

Prejudice in AI systems can be perpetuated if not given a right approach to handle them. AI is a powerful tool that non-profit organizations need to incorporate, but the tools used must be equitable. For example, the non-profit organization called Fairness Labs focuses on the process of auditing AI systems to make sure that they are fair and do not discriminate against any community. Periodic reviews and openness in the creation of AI systems assist in reducing bias and enhancing fairness.

The Future of AI in Non-Profits: New Possibilities Await: AI is expected to bring significant changes in the non-profit organizations in the future. In education, AI can help children to have individual learning process, for example, Khan Academy using AI to adapt content. In healthcare, AI tools can solve the problem of unequal access to medical care in rural areas, for example, the project Health4All, which uses artificial intelligence in healthcare. Furthermore, AI can be used in climate change as it involves analyzing of data to come up with the best strategies.

In the future as AI technology advances non-profit organizations will be more capable of handling a variety of social problems. Therefore, by embracing AI in its operations, non-profits are in a position to increase their effectiveness in delivering their mandate and achieve great social changes for the benefit of the society.

AI is not a passing fad but a revolution that is set to change the non-profit organizations. More Than Half of nonprofits now use A. I. for some tasks, as reported by the The Chronicle of Philanthropy, a development that has been achieved within one year of the availability of the technology. It is not only about following the trends in technology but about changing the nature of organizations and their impact. Non-profits are now using the AI strategies just like Greenpeace and other organizations and are achieving great results with a 23% increase in revenues and improved donor interaction. AI’s ability to enhance disaster response and real-time disease tracking proves that it can effectively respond to significant global issues.

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