How AI Is Influencing Major Gifts Fundraising

At the end of 2024, I recorded a podcast with my colleagues about the state of relational fundraising and the new strategies and tools we believe will be useful in the non-profit sector. One of the areas we briefly touched on was artificial intelligence, or AI, and the ways that fundraisers and organizations have started using it to their benefit.

Well, I want to unpack this topic further as AI continues to grow in ubiquity and evolve faster than ever.

These days, non-profits and major gift fundraisers are increasingly leveraging AI to enhance donor targeting, personalize engagement, improve operational efficiency, and optimize fundraising strategies. On the surface, you might feel like this technology is antithetical to our mission here at Veritus, which is built around relational fundraising. But in actuality, it offers tools, models, and strategies to better achieve it, preventing time-consuming clerical work while getting you out from behind your desk and in front of your donors where you matter most.

As a major gift fundraiser, using artificial intelligence should always come with a caveat. Though it offers unprecedented opportunities, AI should be used strategically to support relationship-building rather than completely replace it. Here’s a more detailed breakdown of how AI is shaping major gifts fundraising today, and how you can leverage it in your own fundraising!

1. Enhanced Donor Targeting

AI enables non-profits to identify and engage high-potential donors more effectively through predictive analytics and segmentation. 

• Predictive Analytics: AI can analyze vast amounts of donor data, identifying patterns that predict a donor’s giving capacity, interests, and likelihood of future contributions. This helps fundraisers prioritize prospects with the highest potential for major gifts. 

• Segmentation: AI tools create precise donor segments based on factors such as giving history, demographics, and behavior. By understanding these segments, non-profits can tailor campaigns to resonate with specific donor groups, leading to higher engagement and conversion rates.

2. Personalized Engagement

Personalization is key in major gifts fundraising, and AI helps create deeper, more meaningful connections with donors. 

• Tailored Communications: AI-powered systems analyze donor preferences and past interactions to craft personalized emails, messages, and campaign materials. You know, the time-consuming stuff. This targeted approach increases donor engagement and retention by making interactions more relevant and compelling. 

• Chatbots and Virtual Assistants: AI-powered chatbots provide real-time responses to donor inquiries, guide them through donation processes, and offer instant support. These tools enhance the donor experience by providing timely, efficient communication without overwhelming fundraising staff.

3. Operational Efficiency

AI streamlines administrative tasks, allowing fundraising teams to focus on strategic relationship-building efforts. 

• Automated Tasks: AI automates routine processes such as data entry, follow-ups, and acknowledgment letters. By reducing manual workload, fundraising professionals can devote more time to cultivating donor relationships. 

• Event Optimization: AI analyzes data from past fundraising events and donor behavior to recommend optimal locations, timing, and messaging. This ensures events are more effective in attracting major donors and generating larger contributions.

4. Improved Fundraising Strategy

AI enhances fundraising strategies by providing insights that maximize campaign effectiveness and resource allocation. 

• Campaign Optimization: AI employs machine learning and A/B testing to identify the most effective messaging, outreach methods, and fundraising channels. This allows non-profits to continuously refine their approaches for better results. 

• Resource Allocation: AI helps determine where to focus fundraising efforts, identifying which donors require personal outreach versus automated engagement, which can ensure a higher return on investment.

5. Data-Driven Insights

With AI, non-profits can harness data to better understand donor behavior and improve fundraising outcomes. 

• Behavior Analysis: AI tracks donor interactions across various touchpoints, identifying patterns that reveal donor motivations. By understanding what drives giving decisions, non-profits can tailor their appeals accordingly. 

• Real-Time Monitoring: AI-powered dashboards provide real-time insights into campaign performance. This allows fundraising teams to make quick adjustments, optimizing strategies for maximum impact.

6. Broader Donor Outreach

AI expands a non-profit’s reach, making it easier to engage donors through digital channels and global networks. 

• Social Media and Digital Engagement: AI analyzes social media trends and donor behavior online to craft compelling digital campaigns. This ensures non-profits can reach potential donors where they are most active. 

• Global Reach: AI facilitates the identification and engagement of potential donors worldwide, enabling non-profits to expand their donor base beyond local and national boundaries.

7. Ethical Considerations

As AI becomes more integrated into fundraising, ethical concerns must be addressed to ensure responsible use. 

• Data Privacy: Non-profits must navigate donor data responsibly, ensuring compliance with privacy regulations and maintaining donor trust. 

• Bias Mitigation: AI algorithms can unintentionally reflect biases. Careful oversight is necessary to ensure fairness in donor targeting and messaging, preventing any exclusion or misrepresentation of donor groups. 

We are still in the experimentation phase here. Many of these tools take tinkering, tailoring, and practice with prompting, all with the goal of refining and providing better internal results. As a 2024 study from the Joseph Rowntree Foundation shows, the majority of surveyed non-profit organizations “are rapidly adopting and experimenting with generative AI,” and are already “finding significant gains in productivity.”

Still, it’s essential for fundraisers to use AI as a supportive tool rather than a replacement for genuine donor relationships. I’ve already heard stories from friends about an agency that’s using AI as its own major gift officer. A potential donor could visit their website, ask questions about the organization with a clinical chatbot, or even talk to AI over the phone, and never speak with a real MGO. That’s problematic on various levels.

While AI can provide valuable insights and streamline processes, the heart of successful major gifts fundraising lies in human connection. By leveraging AI strategically, you can free up more time to cultivate meaningful donor relationships, which means more revenue for your organization and better results for the problems in the world you’re trying to solve.