The state of AI in nonprofit fundraising

Artificial intelligence (AI) is no longer a futuristic concept. It’s here, and it’s already transforming the nonprofit software sector. 

From writing donor emails to personalizing outreach at scale, AI is helping nonprofit teams save time, stretch resources, and deepen supporter engagement. But where exactly does the sector stand on AI right now? And what’s holding organizations back? 

To find out, Bonterra surveyed 547 nonprofit professionals from across the U.S. in August and September 2024. The findings? Equal parts inspiring, surprising, and urgent. 

The interest in AI is real 

Let’s start with the good news: 78% of nonprofit leaders want to use AI or use it even more. That’s a huge signal of momentum and a clear message that the sector is ready to embrace digital tools that amplify impact. 

What’s more, 70% say they’re already using AI in some way. From donor service chatbots to content generation and email personalization, AI is starting to show up in everyday workflows. This isn’t just a tech trend. It’s an operational reality. 

But as with any powerful tool, adoption isn’t without its challenges. 

Comfort levels are mixed 

While many are experimenting, nearly half of nonprofit professionals — 49% — say they’re still not comfortable using AI tools. That discomfort can stem from a lack of training, unclear ethical guidelines, or just the speed at which AI tools are evolving. 

And when it comes to trusting AI with organizational data? The hesitation grows deeper. 

Only 21% of respondents trust AI to deliver accurate results using their data. That’s a trust gap that needs to be addressed with transparency, accountability, and user education. 

The adoption gap: Time, trust, and talent 

One of the clearest signals from our survey is that interest alone isn’t enough. Nonprofits need more than curiosity. They need capacity. 

More than half, 53%, of leaders said they can’t adopt AI effectively due to limited personal time or organizational capacity. Time, not technology, is the real barrier. Whether it’s lack of staff, unclear priorities, or the learning curve required, it’s evident that nonprofits need support to move from interest to impact. 

And then there’s the elephant in the room: Data privacy. 

An overwhelming 92% of respondents expressed concern about sharing their data to improve AI tools, and 39% said privacy and security worries actively limit their AI usage. For a sector built on trust and relationships, this is critical. Nonprofits need to know that AI tools won’t compromise the sensitive data of their donors, volunteers, and communities. 

What’s next for nonprofits and AI?  

We’re entering a new phase where AI isn’t just about automation. It’s about amplification. Imagine donor journeys that adapt in real time. Reports generated in minutes. Volunteer outreach powered by predictive insights. These aren’t pipe dreams — they’re already happening. 

But to get there, we need to equip nonprofit professionals with the right tools, frameworks, and conversations. 

That means: 

• Making AI literacy part of professional development 
• Demanding transparency from vendors and partners
• Creating clear ethical guidelines for AI in fundraising
• Designing for inclusion, security, and trust from the start 

The organizations that thrive in the next chapter of nonprofit innovation won’t be the ones with the biggest budgets — they’ll be the ones that lead with clarity, courage, and care. 

Ready to dive deeper? 

Explore our Nonprofit Guide to Automation — a practical resource designed to help you understand how to integrate automation (including AI) into your daily workflows.

From boosting efficiency to driving deeper engagement, this guide offers strategies and tools to help your team save time and amplify impact.

Download the guide now and start building a smarter, more scalable approach to fundraising.