Nonprofit Leadership Podcast: What’s the Future of AI for the Nonprofit Sector?
Host: Dr. Rob Harder
Guest: Ben Miller, Senior Vice President of Data Science at Bonterra
Release Date: December 1, 2024
Introduction
In the December 1, 2024 episode of the Nonprofit Leadership Podcast, host Dr. Rob Harder delves into the transformative potential of Artificial Intelligence (AI) within the nonprofit sector. The episode titled “What’s the Future of AI for the Nonprofit Sector?” features an insightful conversation with Ben Miller from Bonterra, a company dedicated to supporting nonprofits through advanced technological solutions.
Guest Introduction and Bonterra’s Role
Dr. Harder opens the discussion by introducing Ben Miller, highlighting his role at Bonterra and the company’s comprehensive support across the nonprofit ecosystem. Ben explains, “[Bonterra] helps nonprofits raise money, manage cases, handle grant administration, and facilitate corporate giving” (02:09).
As the SVP of Data Science, Ben Miller focuses on building predictive models and AI tools that enhance nonprofit efficiency and funding outcomes. He emphasizes Bonterra’s unique position, arising from a merger of nine companies, allowing them to address virtually every aspect of nonprofit operations (02:32).
Enhancing Fundraising and Donor Engagement with AI
The conversation pivots to the core topic: leveraging AI for good within nonprofit organizations. Dr. Harder poses a critical question about how AI can enhance engagement between nonprofits and their donors, especially during crises.
Ben responds by sharing experiences from as early as 2010, where AI-driven predictive models identified donor behaviors based on their lifecycle stages. He notes, “AI can help you prioritize your communications, ensuring you engage appropriately with donors who are eager to hear from you versus those who prefer less frequent contact” (03:48).
A pivotal example Ben shares involves Hurricane Katrina, where AI was employed to differentiate between one-time emergency donors and those likely to continue their support. This distinction allowed the nonprofit to focus retention efforts effectively, significantly increasing sustained donations (04:44).
Prioritizing Data and Improving Operational Efficiency
Dr. Harder further explores how AI aids nonprofits in making sense of vast amounts of data to improve fundraising, volunteer engagement, and service delivery. Ben elaborates, “[AI] helps you prioritize the most important activity, whether it’s identifying key donors to engage or optimizing your overall fundraising strategy” (06:05).
He illustrates this with a case study where Bonterra automated a previously manual and error-prone mailing process. By implementing AI, a large nonprofit uncovered a significant group of donors they had inadvertently excluded, leading to an additional $70,000 raised per month (07:23).
Overcoming Barriers to AI Adoption
Addressing the skepticism surrounding AI adoption, especially concerning budget constraints and technical expertise, Ben acknowledges the fears many nonprofit leaders have. He shares a personal anecdote, “I’m also a diabetic using an AI-powered insulin pump, which has been life-changing. This illustrates that trusting AI can lead to positive outcomes” (10:21).
Ben advocates for a cautious yet open approach, encouraging nonprofits to start small by experimenting with AI tools on a limited scale. He suggests, “Test AI with a small segment of your donor base, such as 5%, to evaluate its effectiveness before scaling” (11:00).
Ethical Considerations in AI Implementation
A significant portion of the discussion centers on the ethical use of AI in nonprofits. Ben stresses the importance of data security, mitigating biases, and ensuring human oversight. He states, “Bonterra has developed its own ethical framework based on industry best practices to ensure responsible AI usage” (16:08).
Key ethical considerations include:
- Data Security: Protecting donor and organizational data from breaches.
- Bias Management: Identifying and counteracting inherent biases within AI models.
- Human Involvement: Ensuring AI complements rather than replaces human roles.
Ben emphasizes that nonprofits must choose technology partners who transparently address these ethical concerns, warning, “If a software provider can’t answer questions about data handling and ethical practices, they’re likely not a good partner” (17:52).
Future Trends and Predictions for AI in Nonprofits
Looking ahead, Ben anticipates several emerging trends in AI that will shape nonprofit operations:
- Hyper-Personalization: AI will enable nonprofits to tailor their communications and services to individual donor preferences and needs more precisely.
- Advanced Analytics: Enhanced data analysis frameworks will allow organizations to better understand their performance and identify areas for improvement.
- Increased Adoption Among Large Nonprofits: While larger nonprofits are currently more adept at integrating AI, smaller organizations will begin to catch up as user-friendly and affordable tools become more widespread (19:25).
Ben predicts that AI will become indispensable for nonprofits seeking to maximize their impact and efficiency, much like the transition to cloud computing in the past.
Recommendations for Nonprofits Considering AI
For nonprofits with budgets ranging from $1 to $5 million, Ben offers practical advice on investing in AI:
- Start Small: Allocate a portion of the budget (e.g., $10,000 to $20,000) to pilot AI projects and assess their value.
- Utilize Free Resources: Explore free AI tools with caution, ensuring no sensitive data is compromised.
- Evaluate ROI: Measure the efficiencies and increased funding generated from AI investments to justify the costs (23:32).
Ben also highlights Bonterra’s offerings, including AI-integrated packaging and beta tools available for nonprofits to test without significant upfront investments.
Conclusion
Dr. Rob Harder wraps up the episode by reiterating the importance of intentional AI use in the nonprofit sector. He underscores Ben Miller’s key insights on overcoming barriers, ensuring ethical practices, and embracing the future of AI to drive greater impact.
Ben leaves listeners with a call to action to explore AI tools thoughtfully and leverage them to enhance their organizations’ missions. Dr. Harder encourages nonprofit leaders to access additional resources through Bonterra’s website and other recommended platforms mentioned during the episode.
Key Quotes:
- Ben Miller [02:32]: “Bonterra touches the entire ecosystem of the nonprofit space.”
- Ben Miller [03:48]: “AI can help you prioritize your communications, ensuring you engage appropriately with donors.”
- Ben Miller [07:23]: “We uncovered a pocket of donors that they had not been mailing because the mail plan missed them, raising upwards of $70,000 per month.”
- Ben Miller [10:21]: “I’m also a diabetic using an AI-powered insulin pump, which has been life-changing.”
- Ben Miller [16:08]: “Bonterra has developed its own ethical framework based on industry best practices to ensure responsible AI usage.”
- Ben Miller [19:25]: “I see hyper-personalization and advanced analytics as the future trends that will shape how nonprofits operate.”
Resources Mentioned:
- Bonterra Website: bonteratech.com
- Fundraising Effectiveness Project: fundraisingeffectivenessproject.org
- Giving Tuesday: Co-sponsored with AFP
For nonprofit leaders seeking to integrate AI into their operations, this episode provides a comprehensive overview of the benefits, challenges, and ethical considerations essential for making informed decisions. Ben Miller’s expertise offers valuable guidance on navigating the evolving landscape of AI in the nonprofit sector.