As artificial intelligence (AI) continues to evolve, its influence is increasingly felt across the nonprofit sector. While many organizations have embraced this technology to enhance efficiency and further their missions, questions remain about advocate and donor perceptions of AI. In August 2024, the Donor Perceptions of AI study set out to explore these perspectives. This independent research surveyed 1,006 individuals who had donated to 501(c)(3) nonprofits within the past year, offering the first comprehensive look into donor attitudes toward AI’s role in the nonprofit world. We led this groundbreaking study with the aim of providing valuable insights for philanthropists, nonprofit leaders, fundraisers, and technologists as they navigate AI integration within nonprofit operations.

Trust Through Transparency Enhances Donor Perceptions of AI

For us, perhaps the most striking revelation was donors' emphatic demand for transparency in AI usage, with an overwhelming 93% rating it as "very important" or "somewhat important." This mirrors broader trends in philanthropic governance, where clear communication about operational practices directly correlate with donor confidence and sustained giving.

The research also identified specific areas where donors see the greatest potential for AI to enhance charitable operations:

  • Fraud detection and prevention (48.3%)
  • Operational efficiency improvements (44.7%)
  • Impact measurement and reporting (33.8%)
  • Enhanced beneficiary service targeting (31.9%)

These preferences suggest that donors value AI applications that strengthen organizational effectiveness while maintaining the human-centric nature of philanthropy.

The Personalization Paradox

Interestingly, the study revealed complex attitudes toward AI-driven personalization in fundraising. While 16% of donors appreciate personalized approaches, a significant 39.8% express discomfort with how their data might be used. However, 28.1% indicate acceptance if organizations maintain transparency about their practices. This suggests that successful AI implementation requires clear communication about data usage and robust privacy protections.

Income and Age: Key Factors in Donor Perceptions of AI

The research identified notable correlations between donor demographics and attitudes toward AI:

  • Higher-income donors ($100,000+ annually) demonstrated greater comfort with AI applications, particularly in financial management and impact measurement.
  • Younger donors (ages 18-44) showed more openness to AI-driven innovations.
  • Older donors (60+) expressed stronger preferences for maintaining traditional human interactions.

These variations highlight the importance of tailored approaches when implementing and communicating about AI initiatives.

Read the full article about donor perceptions of AI by Nathan Chappell and Cherian Koshy at Fidelity Charitable.