Insights: AI

AI Strategy for Nonprofits: Start with Strategy, Not Shiny Tools

Executive Summary

It’s easy to get caught up in the marketing and glitz of AI agents, automation tools, and amazing advancements in generative technology. The buzz is everywhere, and the pressure is real.

The more we talk to nonprofits, the more we realize many focus too much energy on the wrong problem. Boards, vendors, supporters and some staff are urging for immediate AI adoption. When organizations ask technology partners for advice, they often get pitches about the features and functionality of shiny new tools instead of guidance on what matters most: solving real business challenges.

We get it—no nonprofit wants to be left behind. Despite uncertainty about the future and current trends, there’s always a real need to innovate and evolve to stay relevant with donors, constituents, and volunteers. Technology companies spend millions marketing the “art of the possible”, and it’s compelling. But what if we break down the buzz? What if we go back to the basics?

AI is more than a tool; it’s a catalyst for cultural and strategic innovation. Just as the Internet and social media transformed nonprofits, AI will reshape how organizations operate. The question is not if or when, but how. How will AI help nonprofits deliver their missions faster, cheaper, and more effectively?

If we view AI in this context, the key is grounding ourselves in fundamentals: What problems are your nonprofit trying to solve? What changes will alleviate those challenges? Once we understand that, we can decide where AI will have the most impact and what tools you need to support adoption.

AI isn’t just a tech upgrade, it’s a leadership imperative.

“The AI journey isn't about tools—it's about transformation. It changes how we lead, how teams work, and how we think about growth. The companies that treat AI as a leadership imperative, not just a technical one, are likely to be the ones that create lasting advantage. The question isn't if AI will reshape your industry, it's whether you'll lead that change or try to catch up. If AI is already improving operations, ask: What's stopping it from reinventing your business model?”

— Forbes Business Council, The AI Adoption Journey: From Skepticism To Strategic Advantage

The Disney Relationship

Most have heard of Walt Disney, the face of the Disney company, but few have heard of his partner and brother, Roy, who was equally involved in the success of the business. In this partnership, Walt represents the “art” and Roy represents the “science” of the company.

When we worked in the nonprofit industry, we used to say, “Fundraising Operations is the Roy Disney of the relationship”—much like Roy, who managed operations and finances behind the scenes while his brother Walt was the creative visionary front and center. Roy’s careful management ensured the company’s success and allowed Walt’s creativity to flourish. In the same way, our team’s commitment to operational excellence made sure everything ran smoothly so the organization could thrive. Just as Roy’s steady leadership enabled Walt’s ideas to come to life, our behind-the-scenes focus empowers fundraisers to succeed.

The Art and Science of Fundraising

Nonprofits must prioritize fundraising to achieve their goals. All fundraising involves “art and science”. The fundraising staff who create the “art” (the storytelling, relationship-building and mission-alignment work) are essential.

However, the “science”, or operations of fundraising is often overlooked yet equally as important. It’s the focus on the people, processes, and tools that support fundraising success. Fundraising operations helps nonprofits raise more money more efficiently. It includes systems, processes, and technologies that support and manage a nonprofit's efforts to secure financial support.

What Problem are We Solving?

As we all know, there are macro challenges impacting our industry right now and certainly our fundraising. We’ve seen some consistent themes for the last 20+ years. The challenges span across both the “art and science” of fundraising—impacting both front-line fundraising staff and operational teams.

Donors are looking for personalized, omni-channel and timely engagement, along with transparency and opportunities for volunteerism
Revenue sources, channels, platforms and their overall donor base need to continue to diversify
Outdated and siloed fundraising tools and constituent information prevent nonprofits from gaining a true “360° view” of a supporters
Burnt out, overworked, underpaid and siloed staff are causing the industry to shrink
Many nonprofits fail to operate strategically because they lack high-quality quality and actionable insights

Real-World Examples

We keep seeing many nonprofits pilot small AI initiatives with little success or impact. And it seems our industry isn't alone. A recent report from the MIT Project NANDA initiative (Networked-Agents and Decentralized AI) found that “95% of enterprise generative AI pilots fail to deliver measurable financial returns."

Successful nonprofits focus on using AI adoption to relieve their staff of time-consuming, administrative fundraising tasks. One such CEO at a medium sized health nonprofit (approx. $10M) recently told me that two years ago everyone would say if you were using AI, you were "cheating". Now she and her team have stopped "hiding" this amazing resource and are embracing it. They use generative AI to help draft stewardship messages and donor engagement content for themselves and their volunteers.

A Strategy-First Roadmap

Strategy doesn’t need to take a long time, produce an extremely long and useless report, and cost a lot of money. We all know nonprofits have limited resources, so we must find affordable options for nonprofits that are inclusive and strategic. Nonprofits can complete strategic discovery, including assessing people, processes and technology, aligning executives, and building a roadmap, in just weeks or a few months. The key is a collaborative approach that brings together fundraisers, technologists, and leaders to design, develop and align on a thoughtful plan and share ownership in its success. This will ensure your organization unlocks smarter AI adoption.

Plan by:

Identifying the core problem
Defining the ideal future state
Mapping the path from current to ideal
Determining what technology, people, and process changes are needed
Setting clear metrics for success

Key Takeaways

AI strategy should start with the basics- what problem are we trying to solve?
The real value of AI lies in how it reshapes organizations—driving new ways of thinking, leading, and working.
Fundraising, and fundraising operations specifically, are ripe for efficiency and therefore for AI adoption.
Let’s slow down to go fast: put strategy before technology to ensure long-term success with AI.