TECHNOLOGY | Why Your Nonprofit Should Start Small with AI

publication date: Jan 29, 2025
 | 
author/source: George Irish

“We should be doing something with AI.”

If you work in the nonprofit sector, you’ve probably heard this sentiment echoed in board meetings and strategy sessions. With all the buzz around artificial intelligence, many organizations feel pressure to jump in — but the path forward isn’t always clear.

Here’s the reality—while AI holds immense potential for transforming nonprofit fundraising, you don’t need to overhaul your entire operation overnight. In fact, you shouldn’t. The smarter approach is to start with a focused pilot program that lets you explore AI’s possibilities while carefully managing both risks and costs.

Why pilots are the perfect first step

Think of an AI pilot as a controlled experiment. Instead of making sweeping changes across your organization, you’re creating a safe space to test how AI could enhance specific aspects of your fundraising efforts. AI pilots can vary in scope and size, but can be as compact as 8–16 weeks — long enough to gather meaningful data, but short enough to pivot if needed.

The beauty of pilot programs lies in their contained nature. You can:

  • Test AI solutions without disrupting your existing operations
  • Gather concrete data about potential benefits before making larger commitments
  • Learn what works (and what doesn’t) through hands-on experience
  • Build confidence and expertise within your team gradually
  • Minimize risk while maximizing learning opportunities

Real-world applications that make sense

Let’s look at a few real-world opportunities for effective and practical AI pilots that can demonstrate solid value without disrupting current operations.

  1. Smarter donor segmentation
    Instead of relying solely on traditional demographic segments, AI can analyze your donor database to uncover hidden patterns in giving behavior, engagement levels, and communication preferences. This deeper understanding helps you tailor your outreach more effectively.
  2. Automated donor support “chatbot”
    A simple chatbot pilot can handle routine donor questions during off-hours, improving supporter experience while reducing staff workload. Start small — perhaps just handling basic donation process questions — and expand based on results.
  3. Personalized digital experiences
    Test AI-driven personalization on a single landing page or email campaign. The system can adjust content, giving arrays, and payment options based on how supporters arrive at your site, potentially increasing conversion rates.

Managing common concerns

Whenever I discuss AI pilots with nonprofit leaders, important concerns about AI need to be examined.

Data Security: Yes, donor data security is paramount. That’s why pilots should include strict data governance protocols, including anonymization and privacy compliance standards. Nothing moves forward without meeting your organization’s security requirements.

AI Bias and Ethics: AI systems can reflect societal biases present in their training data. Your pilot should include regular checks for fairness in donor targeting and messaging, with clear processes to identify and correct any biases that emerge. Strong ethical guidelines ensure AI supports your mission without compromising your values.

Technical Expertise: You don’t need a team of data scientists. Modern AI tools are increasingly user-friendly, and good pilot programs include comprehensive training and support. The focus should be on helping your existing team work smarter, not on mastering complex technology.

Staffing Concerns: AI isn’t about replacing fundraisers — it’s about enhancing their capabilities. Pilots help automate routine tasks so your team can focus more on what humans do best: building meaningful relationships with donors.

Starting your AI journey

The key to successful AI adoption is starting small but thinking strategically. A well-designed pilot program should:

  • Address a specific challenge in your fundraising operations
  • Have clear, measurable objectives
  • Include regular checkpoints to assess progress
  • Provide actionable insights for future decision-making
  • Build internal confidence and expertise

The goal isn’t just to test the latest technology — it’s to gain insight into how AI can serve your mission and improve your fundraising outcomes.

  1. Start small and contained.
    Choose a single, well-defined pilot project and keep it separate from your main operations. This creates a controlled environment for learning and validation.
  2. Rigorously protect donor data.
    Establish clear data governance protocols and ensure all donor information is properly anonymized before any AI testing begins. Your donors’ trust is paramount.
  3. Look beyond ROI.
    Include more than just financial outcomes in your evaluation criteria, consider safety metrics, data handling accuracy, error rates and donor feedback.
  4. Invest in team AI literacy.
    Ensure your team understands the capabilities and limitations of AI tools, with clear protocols for human oversight of AI-generated content.
  5. Document everything.
    Keep detailed records of the pilot’s performance, unexpected behaviors, and lessons learned to improve future implementation.

Remember: The goal isn’t just to innovate — it’s to innovate responsibly in service of your mission and donors.

The time is right

With AI tools becoming more accessible and affordable, there’s never been a better time for nonprofits to explore their potential through pilot programs. The key is to approach it thoughtfully. Start small and focus on learning.

Your organization doesn’t need to be at the bleeding edge of technology, but you do need to start understanding how AI can serve your mission. A well-designed pilot program offers the perfect balance of innovation and practicality, letting you explore AI’s possibilities while keeping risks and costs manageable.

The future of fundraising will undoubtedly include AI — but that doesn’t mean you need to figure it all out at once. Start with a pilot, learn from the experience, and let your AI journey unfold one strategic step at a time.

Get more AI fundraising pilot ideas. 

George Irish works at the intersection of Artificial Intelligence and fundraising, helping nonprofits navigate the opportunities and challenges of AI. With over three decades of experience, including 20 years leading digital fundraising for Amnesty International, he has delivered innovative fundraising results for charities in Canada, the United States, and internationally. George has been working with AI & ChatGPT since 2020 and builds custom AI-powered solutions for fundraising organizations at FundraisingwithAI.com.



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