Artificial intelligence (AI) has revolutionized the way nonprofits approach fundraising. Predictive modeling empowers organizations to increase their return on investment (ROI) by making data-driven decisions on prioritizing their fundraising efforts.
However, as the power of AI solutions continues to grow, so do consumers’ concerns about these tools. A YouGov survey found that 54% of Americans describe their feelings towards AI as “cautious,” while 49% say they are “concerned.” Their concerns include potential negative societal impacts and mistrust that AI can make ethical or unbiased decisions.
Advancing your nonprofit’s AI use shouldn’t come at the expense of breaking donors’ trust. With that in mind, we’ve created this guide to responsible AI use, with nine best practices for developing a comprehensive ethical AI strategy.
1. Maintain data privacy and security.
AI solutions come with real security concerns that your organization must reckon with. 80% of data experts believe AI increases data security challenges, demonstrating the risks associated with these innovative tools.
Action steps to take today:
- Align with industry regulations, such as HIPAA or FERPA. Consult with your organization’s legal representative to cover all your bases.
- Maintain compliance with state and federal privacy laws, such as the CCPA. Keep track of emerging AI legislation to stay up-to-date on regulations in your state or region.
- Implement robust security measures to protect sensitive donor data from breaches and cyber threats. This includes access controls, data encryption, and multi-factor authentication.
2. Promote fairness and combat bias.
Bias is another well-known risk factor of AI modeling solutions. Researchers at the University of Southern California found bias in up to 38.6% of “facts” used by AI tools. If you train your model using outdated, biased information, you could perpetuate those biases in your fundraising activities.
Action steps to take today:
- Beware of inherent biases in AI algorithms that might perpetuate discrimination or exclude certain groups of potential donors.
- Train your AI models using diverse and representational datasets.
- Regularly audit AI systems to identify and rectify biases, ensuring that fundraising efforts are inclusive and equitable.
3. Obtain donors’ consent for AI fundraising.
Many donors will be enthusiastic about embracing new and innovative fundraising techniques, while others will be more cautious. Give donors the choice of whether they want to participate in AI fundraising.
Action steps to take today:
- Ask for donors’ consent to use their data in AI fundraising and predictive modeling. You can add a checkbox to your online donation form or send a mass email to everyone in your contact list updating them about your new AI strategies.
- Give donors an easy way to opt out at any time via a form on your website.
- Update donors anytime you change your data use policy so they can make informed decisions about whether they want their information to be involved.
4. Provide transparency and clear explanations for your AI use.
According to a Pew Research survey, 81% of people believe the information companies collect will be used in ways they are not comfortable with. The survey also found that six in ten Americans think privacy policies are ineffective at explaining how companies use people’s data.
The same goes for your nonprofit—your audience will have a healthy amount of skepticism about how your organization uses the data it collects. It’s your job to provide an overabundance of transparency and explain exactly how you’re using your AI solutions.
Action steps to take today:
- Create a data privacy policy for your website. Explain exactly what data you collect, how you use it in your predictive modeling, and how it benefits your mission.
- Be transparent about the use of AI in fundraising campaigns to maintain donors’ trust.
- Share your AI wins so your audience can see the benefits of pursuing this fundraising strategy. For example, describe how much money your organization has saved with the help of AI fundraising, allowing you to direct more funding toward mission-critical activities.
5. Mitigate negative impacts on donor relationships.
Your nonprofit’s use of AI should never come at the expense of positive supporter relationships. If you find that your use of AI is deeply troubling for your audience or you don’t have clear reasons for using these tools, it may be time to go back to the drawing board to reassess your AI strategy.
Action steps to take today:
- Take your supporters’ feedback into consideration. Ask supporters what they think about your current AI policies and what you could do to help them feel more at ease.
- Avoid overreliance on AI tools in fundraising that might lead to a loss of the human touch in fundraising efforts.
- Balance the use of AI technology with maintaining genuine and personalized interactions with donors. Don’t let AI take over all of your donor communications—maintain a personal touch by incorporating in-person interactions, handwritten notes, and other personalized touchpoints into your communications cadence.
6. Maintain human oversight.
To maintain legal compliance, data privacy, security, and personalization, you must have human oversight over all AI practices. Don’t take a “set-it-and-forget-it” policy with your AI modeling—actively monitor your AI procedures to identify potential issues before they become real problems.
Action steps to take today:
- Create an AI oversight committee to maintain human oversight in AI-driven fundraising processes, prevent unintended consequences, and ensure responsible decision-making.
- Manually assess your data and modeling processes. Ensure your data and models reflect your real audience to ensure diversity and accuracy.
- Remember human intervention is essential for addressing complex ethical dilemmas that AI might encounter. Your AI tools won’t have all the organizational history and context needed to effectively address and correct potential ethical issues.
7. Define clear accountability structures.
Create a plan up-front for mitigating potential issues that arise from your use of AI. Having a solid accountability structure in place will allow you to avoid scrambling when issues inevitably arise. With a clear response plan, you can restore your audience’s trust in your organization.
Action steps to take today:
- Clearly define accountability chains to assign responsibility in case of any ethical or security breaches. Specify which team members will take on different roles. For example, who will inform the public about the breach? Who will investigate the root cause? Who will adjust your strategies and procedures to prevent the issue from recurring?
- Regularly evaluate AI models and fundraising strategies to ensure adherence to ethical standards. Create a standard schedule for reviewing your models, such as once a month, to ensure this doesn’t fall by the wayside.
8. Train employees.
Your organization’s staff members, specifically your fundraising team members, will interact with your AI solutions daily. Therefore, they must know how to manage these tools effectively, securely, and responsibly.
Action steps to take today:
- Set clear guidelines for employee AI use at your organization, including the steps they’re expected to take to correct potential ethical issues. Make sure all employees are clear on different access limitations, password guidelines, and other security measures.
- Implement continuous learning opportunities, such as webinars, mandatory training sessions, and team meetings to align on evolving AI best practices.
- Train employees on how to communicate with external stakeholders about how your organization uses AI in fundraising or other operations. Standardize these talking points to ensure consistency across conversations.
9. Conduct an AI readiness assessment.
If you’re unsure whether your organization is prepared to take on AI responsibly, it can be helpful to work with an external partner who can provide an unbiased, expert assessment.
Action steps to take today:
- Work with a fundraising consultant to assess your organization’s readiness to implement AI methods and solutions. The experts at BWF can help by evaluating your organization’s AI literacy, identifying opportunities and challenges regarding AI implementations, and outlining potential risks when considering different tools. The BWF team will also equip you with a custom AI roadmap or tips for progressing your internal operations to better prepare for a future AI implementation.
Why Responsible AI Matters
The power of AI in nonprofit fundraising is undeniable, but its implementation must be guided by ethical considerations. As nonprofit leaders, we must leverage AI responsibly, with a commitment to fairness, transparency, and the protection of donor rights. By adopting ethical practices in AI-driven fundraising, we can achieve our fundraising goals, build stronger relationships with donors, and make a more significant impact on the causes we champion.
Are you ready to embrace ethical AI in your fundraising endeavors? Reach out to BWF to launch an AI readiness review to ensure your organization is prepared to implement AI successfully and ethically.
Let’s Talk
Find out how BWF can support your nonprofit AI strategies and goals.
