Fundraising is on the cusp of AI transformation – but first we must solve what’s holding us back

It means of course that fundraising has never been more essential, yet we also know that recent trends show donor numbers decreasing.  So how do we grow giving?   

Already reshaping much of our lives, developing technologies can present solutions here too, if we can harness them. AI is becoming increasingly accessible, offering incredible opportunities for better efficiency, personalisation, and strategic insight, and placing us on the cusp of transformational change. But of course, this also presents challenges that require careful navigation.  

To better understand how fundraisers are feeling about AI and what we can do at the Chartered Institute of Fundraising to help the sector take advantage of its benefits, we took a temperature check in collaboration with the Centre for Digital Innovation in Philanthropy and Fundraising at the University of York.   

Through an online survey and follow up interviews, we asked fundraisers and consultants how charities are currently using the technology, how fundraising professionals view AI in terms of the opportunities they want to grasp, and what barriers are stopping them.

The results, launched at Fundraising Convention in June, and shared in our report Shaping the Future of Fundraising with AI, show that the opportunities AI presents for fundraising are widely and well understood.   

In fact, more than three quarters of the people we spoke with see AI as a way to become more efficient, reduce costs, and communicate more efficiently. Around two-thirds also highlighted its ability to help them better understand their audiences.   

Yet less than half are currently using AI for fundraising. Of those that are, it’s mostly helping them improve written communications, as well as data selection for campaigns, and prospect research. The biggest benefit so far is the time it frees up to dedicate to other tasks. 

So, what’s holding fundraisers back? From the responses, it’s clear they feel a lack of both knowledge, and of the practical skills needed to be able to use AI to its full potential. In fact, only just over a third of respondents had received AI training in the last year, and even fewer know where they can access this. 

Ethical practice is always at the forefront of every fundraiser’s mind, so it also came as no surprise to learn that the ethics of using AI is another key area of concern, and that many are worried too about the very real possibility of data bias and discrimination. What doesn’t help, is the scarcity of regulations and guidelines that they can follow and trust – with most saying they’re unaware of any for fundraisers, leaving them to self-regulate as a result.  

In fact, there is no binding regulation for AI use in the UK – unlike the EU Artificial Intelligence Act. Instead, the government has issued guidance for regulators to interpret and apply, which for charities means ensuring compliance with existing legislation such as data protection and equality laws when using AI. 

Perhaps echoing many fundraisers’ thoughts, one respondent summed up with: “It feels like there’s so much out there, it shifts so quickly, obviously, how do you keep on top of that in a meaningful way. It’s quite a challenge, particularly for a small organisation and that’s before you get into complicated issues around regulations and ethics and data.” 

So, while revealing much positivity around how AI can help fundraising, our research also underscores an urgent need for support: for charity-specific guidelines and robust training to help fundraisers responsibly adopt AI and achieve the best possible results from doing so. 

At the Chartered Institute of Fundraising, these findings have been immensely useful in helping us better understand how the sector views AI and what’s currently holding it back from achieving the transformation possible.  

On Thursday 11 September, we’re hosting a free AI and Fundraising workshop at our Canopi office in London from 11am – 1:30pm (we’ll even provide lunch!) where we’ll be joined by researchers from the University of York and Durham University to explore the results of the AI and fundraising research, and to start the conversation about how senior leaders can support their fundraisers and charities in the use of AI.

Conversations will help us produce guidance for leaders to support them in decision-making around the use and adoption of AI – so if you think this is for you, please register your interest by emailing membership@ciof.org.uk. Spaces are limited so get in quick.  

In the meantime, I’d encourage you to take a look at this report, it’s free to download, as a starting point or as a sense check for your own AI journey. It’s a valuable resource for anyone seeking insight into how other fundraisers feel about AI, and how they’re using it, or planning to, as well as providing reassurance that most in the sector are moving forward at a similar pace. I hope it can support your charity in harnessing the opportunities AI brings for growing giving and enhancing your fundraising impact.