In the nonprofit sector, technology continues to shape how organizations operate and engage with their communities. These organizations work tirelessly to accomplish their missions, often with limited staff and resources. This is why this year, a cost-optimized technology strategy is the key to success.
This means that nonprofit IT leaders should invest in technology tools that help accelerate an organization’s digital transformation. In fact, nonprofits considered “digitally mature” are 4 times more likely to achieve the mission objectives, according to a Selling power study.
Prioritization artificial intelligence capabilities that reduce the burden on staff who need to invest in predictive analytics to facilitate fundraising efforts, these are the technology trends of 2024.
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Trend 1: A focus on generative AI. Nonprofit organizations are increasingly leveraging Generative AI to analyze donor data and predict giving patterns, resulting in more targeted and effective fundraising campaigns. This includes integrating tools such as AI-powered chatbots and AI-driven analytics into their operations to streamline tasks, improve communication and gain valuable insights.
Generative AI can deliver breakthrough advancements, but getting started means “enabling transformative, trusted, and ethical GenAI deployments across the enterprise,” according to a recent report from EY. Nonprofit Experts say that automating repetitive back-office tasks or running faster analysis of donor data saves staff hours of manual labor and makes fundraising more efficient.
As nonprofits invest in generative AI, they must also establish AI safeguards. Eric Reicin, CEO of BBB National Programs, told Forbes: “The challenges of obtaining AI governance rights are high, so organizations should think now about how to guide policies for responsible use, both for internal and external audiences.
LEARN MORE: Artificial intelligence can unlock the full power of your data.
Trend 2: A push toward data-driven decision-making. Organizations that operate predictive analytics predict needs get more information in their communities and refine communications with donors. Predictive analytics helps nonprofits determine future donor behavior based on past contributions. This means they can target the right donors more quickly.
“Donors are demanding tangible impacts from their contributions, pushing nonprofits to demonstrate results and efficient use of resources,” said Brightpoint President and CEO. Mike Razor says Forbes.
But to predict success, nonprofits must first look at all the data they have.
“Nonprofit organizations often have a wealth of historical documentation, databases, applications and other institutional knowledge. But it can be very difficult to find and effectively leverage this knowledge,” says Jamie Alexandre, co-founder and executive director of Learning equality.
That’s why organizations are turning to retrieval-augmented generation, an AI technique that indexes all of these documents into a large language model. “This allows this wealth of organization-specific knowledge to be retrieved, synthesized and interrogated, via chat,” explains Turon.
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Trend 4: Strengthening security, privacy and trust: With the increase in cyberattacks, there is an increasing focus on ethics and data confidentiality. Nonprofits are investing more in threat and vulnerability assessments “to build trust and maintain ongoing stakeholder support,” says Shaver.
Now more than ever, users are aware of scams and wary of robocalls. “An inauthentic thank you letter written by a chatbot or security breach through AI data control The service will undermine trust in the organization involved and in the industry as a whole,” Benefactor Group President Laura MacDonald told Forbes.
Trend 4: A commitment to sustainability: According to Institute for Environmental and Energy Studies, energy is one of the highest operational expenses for nonprofit organizations. Programs such as Renewing the American Nonprofit Agenda, launched in 2022 by the Biden administration, fund widespread energy improvements so that nonprofits can generate savings.
Reducing e-waste, improving data center efficiency, and prioritizing IT asset management and disposal strategies are all important steps for nonprofits. sustainable development initiatives.
Overall, 2024 promises a seismic shift as nonprofits use generative AI and predictive analytics to improve their operations and achieve digital maturity. IT managers who integrate new technologies in a thoughtful and transparent manner in their organization will be the most effective in maintaining the trust of their teams and their donors.
