Lessons on AI for the Nonprofit Sector

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👋🏾 Hey! I’m Sid and this is The Philanthropy Futurist, a weekly advice column preparing you for the future of the nonprofit sector. Each Friday, I tackle reader questions about measuring impact, driving growth, and managing your nonprofit.

This Week’s Newsletter at a glance:

• Lessons on AI for the Nonprofit Sector

• Philanthropy News From This Week

• Sid’s Book Recommendation

Lessons on AI for the Nonprofit Sector

Here’s the reality— AI isn’t just coming. It’s already here. And the Nonprofit Sector is at a crossroads: adapt and thrive OR hesitate and fall behind.

If you’re new to AI, keep reading. If you’re already experimenting with it, you’ll want to keep reading too. Thank me later.

Understanding The AI Opportunity

Many people don’t know this, but artificial intelligence (AI) has actually been around for decades. The true innovation that’s caused so much excitement is a sub-category of AI called Large Language Models (LLMs)— that’s the real game changer right now.

To put this into perspective:

• 12+ years ago, AI started quietly making our lives easier without most of us even noticing. Think about the way your phone suggests the next word as you type a text message. That’s AI at work

• Now, you can ask ChatGPT whether a tomato is a fruit or a vegetable, and in seconds, it will confirm… it’s a fruit! And yes, you read that right— tomatoes are fruits!

When I worked at Google, I saw firsthand how fast AI-powered tools were evolving both internally and out in the world. Many experts are saying the impact of AI will be bigger than the internet itself— and I agree!

Today, we are not even halfway there— we’re only scratching the surface.

AI is going to reshape how we live, work, and serve our communities. Nonprofits that embrace this technology now— will be far ahead of the curve.

Practical Ways AI Can Strengthen Your Nonprofit

The potential uses of AI in the Nonprofit Sector are massive. Here are some ways organizations are already using it:

• Donor Research & Engagement – Identify, segment, and engage donors with intention

• Grant Writing – Draft compelling proposals in a fraction of the time

• Impact Measurement – Analyze program outcomes and ROI with AI-driven insights

• Fundraising – Scale personalized outreach, while potentially boosting donor conversion

• Program Operations – Automate routine tasks, freeing up teams for high-value work

• Marketing and Communications – Edit videos, draft communications, and optimize social media messaging

This is our chance to do more with less and amplify our impact. A 20-person team can now achieve the results of 60, and a 200-person organization can scale like a 400-person team. But the key is implementing AI strategically.

Smaller Nonprofits likely have a competitive edge in AI adoption— primarily because they have less bureaucracy and fewer barriers to change.

That said, regardless of the size of your organization— AI should be implemented very wisely. The power of human connection is irreplaceable, and Nonprofits must strike the right balance between automation and authenticity.

How to Get Started with AI— Today

You don’t need a tech background to start using AI. Here’s how to take action today:

For AI Beginners

• Experiment with ChatGPT prompts to draft grant applications or donor communications

• Use AI transcription tools like Fathom to capture meeting notes. And if your team uses Google Suite, you likely have this feature on Google Meet already

• Explore tools like Icon or OpusClip to help with video editing

For Seasoned Users

• Use predictive analytics to forecast fundraising trends using DonorSearch

• Implement AI-driven workflows using Zapier to connect Claude with other software tools your team is already using. Find a list of tool integrations here

• Automate tasks by letting Claude temporarily use your computer. The Claude feature is called Computer Use. OpenAI has a similar feature called Operator

Beyond the above examples, many AI tools are emerging to support Nonprofits. I’ll be curating a free directory of AI tools— including hands-on video reviews for each. The goal of the directory is to help readers like you navigate this fast-moving environment. Stay tuned for more info!

Looking Ahead

If you remember one thing from this newsletter today, please let it be this:

“AI is so much more than ChatGPT prompts.”

Think bigger. Dream bigger. Because— your imagination may fuel the AI tool that changes the Nonprofit Sector forever.

Over the coming weeks and months, I’ll be speaking with AI Experts, Engineers, Researchers, and Nonprofit Leaders who are already using AI in unique ways. Expect deep dives, real-world case studies, and strategies to future-proof your organization.

For now, explore the examples above and think outside the box. Experiment, experiment, experiment.

The future of the Nonprofit Sector isn’t just about impact— it’s about innovation. And AI can play a huge role in shaping that future.

See you next week.

Have questions you want answered? Submit questions using this form and I’ll work hard to get you the answers by way of this newsletter.

Philanthropy News From This Week

• Los Angeles Wildfire relief donations top $650 million

• Tracking Federal Actions Impacting the Nonprofit Sector

• DAFgiving360 donors award more than $7.7 billion in 2024

• Chess Grandmaster Broke a Dress Code With Jeans — for Charity

Sid’s Book Recommendation

Each week, I recommend a book or film that has impacted my life in a positive way. My recommendation this week is:

THE 4 DISCIPLINES OF EXECUTION by Chris McChesney, Sean Covey, and Jim Huling

This book is a simple, proven formula for executing your most important high priorities in the midst of the whirlwind. It’s a good read for individuals and teams. Personally, I have read this book many, many times! Learn more.

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