Nonprofits use AI, but see little impact

Why it matters

- The gap between adoption and impact stems from a lack of strategy, with 81% of nonprofit AI use being individual and siloed rather than integrated into shared team workflows. Furthermore, a significant 76% of nonprofits lack a formal AI strategy or policy to guide their implementation. - A major barrier to effective AI use is the lack of internal expertise and resources; 60% of nonprofits report they don't have the in-house knowledge to properly assess AI tools, and only 4% have a dedicated budget for AI-specific training. This is compounded by the fact that in 43% of organizations, just one person is responsible for all IT and AI decisions. - Despite slow strategic adoption, nonprofits are using a range of AI tools, with ChatGPT being the most popular (57%), followed by Microsoft's Copilot (23%) and Google's Gemini (14%). For fundraising specifically, tools like Dataro and DonorSearch AI are being used for predictive modeling to identify potential donors. - Organizations that successfully leverage AI for fundraising report tangible results, with some seeing a 20-30% increase in donations through more personalized outreach and better donor targeting. For example, Charity: Water increased its donor retention rate by 30% by utilizing AI-powered chatbots for personalized communication. - Looking at specific fundraising applications, very few nonprofits have adopted more advanced AI tools. Recent survey data shows only 4.5% use smart donation forms, 2.3% use predictive AI to identify major donors, and just 1.2% are using emerging agentic AI software. - Data privacy and security are primary concerns holding back wider AI implementation, with 92% of nonprofit professionals expressing worry about sharing organizational data to improve AI tools. Furthermore, 70% are concerned about data privacy, and 63% worry about the accuracy of AI-generated information. - The digital divide is apparent in AI adoption rates, as larger nonprofits with budgets over $1 million are adopting AI tools at nearly double the rate of smaller organizations (66% vs. 34%). This resource disparity impacts the ability of smaller, grassroots nonprofits to benefit from AI advancements. - While 82% of fundraisers are comfortable using AI for donor research, 63% are hesitant to use generative AI for donor communications because they feel it is less personal. However, tools like Handwrytten use AI-powered robots to create personalized, handwritten notes at scale to maintain a human touch.

Key numbers

• A new benchmark study from Virtuous and Fundraising.AI found that while 92% of nonprofits are using AI tools, only 7% report major improvements in their organizational capabilities.
• The 2026 Nonprofit AI Adoption Report, which surveyed 346 nonprofits, reveals a significant gap between the adoption of AI technology and its effective impact on fundraising and operations.
• - The gap between adoption and impact stems from a lack of strategy, with 81% of nonprofit AI use being individual and siloed rather than integrated into shared team workflows.
• Furthermore, a significant 76% of nonprofits lack a formal AI strategy or policy to guide their implementation.

Sources

• Fundraising.AI found
• The gap between adoption
• Furthermore, a significant
• A major barrier to
• This is compounded by
• For fundraising specifically
• Organizations that
• Recent survey data shows
• Data privacy and security
• This resource disparity

Quick answers