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Demystifying Artificial Intelligence for Nonprofits:

Why you should care about artificial intelligence for your nonprofit right now, not later

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It feels like every day there are new headlines about both the benefits and the dangers of AI. Some say it will replace human workers because it can aggregate information, summarize data and provide key insights, and it learns as it goes. Others worry it’s a passing fad that could open organizations up to data breaches and eliminate actual jobs. And how, exactly, does artificial intelligence fit in for nonprofits?

As with most technology, the truth is likely somewhere in between “it will replace humans so we can replace everyone!” and “we must kill it with fire!” The reality is AI tools have been around for years and many of us have been using them without realizing it.
 
In previous posts, Sylogist has explored the basics (AI 101) and key terminology (AI 102) but now we’ll take a deeper look at attitudes within nonprofits around AI.
 
Attitudes about AI
We are at an inflection point. Workers want to use AI tools RIGHT NOW but leaders in both the for profit and nonprofit space worry that they won’t be able to demonstrate the impact AI has in objective terms and are leery to implement new technology without proper security and policy in place.
 
According to the 2024 Work Trend Index Annual Report from Microsoft and LinkedIn, use of generative AI has nearly doubled in the last six months with 75% of global workers reporting they use it. 
 
Users say AI helps them to:
Save time (90%)
Focus on their most important work (85%)
Be more creative (84%)
Enjoy their work more (83%)*
 
Staff Burnout & Turnover
AI tools are a potential avenue to address increasing levels of staff burnout and turnover in nonprofit organizations. For most employees – 68% – work has accelerated faster than employees’ ability to keep up. The pace and volume of work has increased leaving 46% reporting that they feel burned out.*
 

In the nonprofit sector specifically, recent studies show concerning trends in staff burnout and employee turnover. In a 2024 report from the Center for Effective Philanthropy, 95% of leaders expressed some level of concern over employee burnout and 69% of respondents ranked it as “very much a concern”.**

33% of nonprofit leaders were “very much” concerned about their own burnout. Half also reported that they are more concerned about their own burnout now than they were last year. About three quarters of leaders said that this burnout at least slightly impacts their organization’s ability to achieve its mission.**
 

Factors contributing to this rise include increased workloads, emotional strain from working with vulnerable populations, and the blurring of work-life boundaries, especially with the shift to remote work. The report highlights that younger employees, in particular, are experiencing higher levels of burnout, possibly due to less experience in managing stress and work-life balance.

Burnout inevitably leads to higher turnover rates and nonprofits are already at a disadvantage as financial constraints often limit the ability of nonprofits to offer competitive salaries and benefits, making it challenging to retain top talent.
 
Many organizations only look at compensation and benefits when considering employee turnover. They forget that training, equipment, and hiring resources also contribute to the cost. If you’re curious about the cost of turnover in your own organization, The Nonprofit Leadership Alliance has a free turnover calculator you can use.
 
Diverging and converging views
Most leaders – 79% – agree that their company needs to adopt AI to stay competitive, but 59% worry about quantifying the productivity gains of AI and demonstrating a sufficient return on investment. Many leaders – 60% – worry their organization’s leadership lacks a plan and vision to implement AI properly.*
 

Some leaders might want to give it some time and ensure that any new tools are properly vetted and tested. While this is understandable, a void of guidance and official policy at the top of the organization leads to employees taking things into their own hands and using AI tools without proper transparency and training. Hesitating for too long to implement new AI tools also means missing out on the benefits that come from strategic AI usage across an entire organization.

Clearly there is a lack of alignment between how employees at different levels view AI usage.

53% of people who use AI worry that using it on important work tasks makes them look replaceable. 52% of people who already use AI at work are reluctant to admit to using it for their most important tasks.*
 

Conversely, 66% of leaders say they wouldn’t hire someone without AI skills.*

For most people AI isn’t going to replace their entire job. There are still plenty of things that humans do better. And even the harshest critics admit that we’re nowhere near a Skynet/Terminator scenario playing out in real life.
 
As is the case with most technological shifts, AI is likely to make people’s jobs more efficient and free up time that typically had to be allocated to repetitive administrative tasks. For nonprofits, the less time spent on administrative tasks, the better. Automating tasks like labor intensive data entry, report creation, bank reconciliation, and fund accounting allows fundraisers to focus on building relationships with donors and sponsors.
 
We can’t predict the future of AI, and we’d be remiss to promise that certain things will happen on a definitive timeline. We can, however, look at real-world examples of properly vetted AI tools that can help all levels of nonprofit employees be more efficient, increase transparency and financial accountability, and gain powerful data insights that can help inform your organization’s fundraising and accounting practices in real time.
 
Real-world Applications of AI for Nonprofits
 
AI can revolutionize the way nonprofits operate by providing powerful tools for financial management, enhancing transparency, and utilizing data for impactful storytelling. Here are some specific ways AI can help:
 

  • Financial Management: AI can automate financial reporting, reduce errors, and provide real-time insights into financial health.

  • Transparency: By automating data collection and analysis, AI enables nonprofits to create detailed and accurate reports for donors and stakeholders.

  • Data-Driven Storytelling: AI can analyze large datasets to identify trends and patterns, helping nonprofits craft compelling stories that highlight their impact.

  • Natural Language Processing: AI tools that understand natural language inputs make it easier for nonprofits to adopt and use these technologies without extensive training.

 
AI Tools with Low Barriers to Entry
 
It may feel like there are huge barriers to entry when it comes to implementing AI tools at nonprofit organizations. There are the typical concerns anytime an organization implements new software and the unknowns about cost, data security, and if users will need extensive training. What you may not realize is that many of the tools and software you’re already using incorporate AI.
 
You’ve probably heard the most about stand-alone products like ChatGPT and Google Gemini which can come with a learning curve. However, if we look at Microsoft, applications like Word, Excel, and PowerPoint, each has features like predictive text, grammar and style suggestions, and even data insights. You’ve probably seen the design ideas sidebar pop up in PowerPoint. It gives you ready to use slide templates based on the content you’re laying out.
 
Google and Bing both use AI to enhance search results, improve user experience, and manage the vast amounts of data they process with each inquiry. AI-driven autocomplete suggestions help users to complete their queries quickly by predicting what they’re likely to type next.
 
Nonprofits that already use additional Microsoft products like Dynamics 365 have the option of adding Copilot. There’s a long list of functionalities, but some of the highlights for nonprofits include:
 
Grant Proposals and Reports: Copilot can assist in drafting grant proposals, reports, and other documents, ensuring they are well-written and formatted.
 
Marketing Materials: Create newsletters, social media posts, and promotional materials with AI-generated content, saving time and ensuring consistency.
 
Donor Management: Analyze donor data to identify trends, segment donor lists, and personalize communication strategies.

 

Task Automation: Automate routine tasks such as scheduling meetings, sending reminders, and managing to-do lists.

Budgeting and Forecasting: Assist in creating budgets, financial forecasts, and expense tracking.
 

Report Generation: Generate financial reports and summaries for board meetings and donor presentations.

 
Natural Language Processing
Natural Language Processing (NLP) is a field of artificial intelligence that focuses on the interaction between computers and humans through natural language. It involves the development of algorithms and models that enable computers to understand, interpret, generate, and respond to human language in a way that is both meaningful and useful.
 

AI tools that leverage natural language processing make it infinitely easier for new users to start using AI tools and it allows users to personalize software to their own specific needs. This means less training and quicker implementation for all users.

 

 AI Tools vs. AI Platforms

The examples above show how much we already use AI tools and help to illustrate that there are different approaches to using AI within your organization. There are single platforms like ChatGPT or Google Gemini, or there are software options that integrate AI tools and insights into other tools your organization already uses.
 

For nonprofit financial management, it’s ideal to find software that meets your needs for fund accounting, grant application and management, budgeting and forecasting, and reporting AND uses AI tools for data insights, content creation, and marketing.

 
Implementation
 

Implementing software with AI tools is generally easier than relying on a single AI platform. Some of the factors to consider include: flexibility, specialization, and integration capabilities. AI tools are often designed to address specific tasks or problems, allowing organizations to choose and combine the best solutions tailored to their needs. This modular approach provides greater flexibility in terms of functionality and scalability, enabling organizations to adapt quickly to changing requirements and integrate new capabilities as they evolve.

 
Specialized Tools
 

Specialized AI tools offer depth and expertise in particular areas, such as natural language processing, computer vision, or data analysis. These tools are typically developed and maintained by experts in the field, ensuring they incorporate the latest advancements and best practices. By leveraging a variety of specialized tools, organizations can achieve higher performance and more accurate results than they might with a general-purpose AI platform. This specialization allows for more precise and efficient solutions, ultimately leading to better outcomes.

 

Integration with Other Software

 

Integration is another significant advantage of using multiple AI tools. Modern software development often involves complex ecosystems of interconnected services and applications. AI tools are designed to integrate seamlessly with existing systems, APIs, and workflows, facilitating smooth implementation and reducing the time and effort required for deployment. This compatibility ensures that AI capabilities can be embedded into various aspects of the organization’s operations without the need for extensive reengineering or custom development.

 

In contrast, a single AI platform may impose limitations in terms of adaptability and specificity. While it may offer a broad range of functionalities, it might not provide the same level of expertise or performance in every area. Additionally, a single platform might require more extensive customization to fit the unique needs of the organization, leading to increased complexity and potential implementation challenges.

 

 Security

 

Using software with AI tools built in is generally better for the security of nonprofit donor data for several reasons: enhanced threat detection, improved data management, real-time monitoring, and compliance support. These AI-driven security features can offer nonprofits a more robust and proactive defense against data breaches and cyber threats, which is crucial for protecting sensitive donor information.

 
Enhanced Threat Detection
 

AI tools embedded in software can analyze patterns and behaviors to detect anomalies that may indicate a security threat. These tools can identify unusual activities, such as unauthorized access attempts or suspicious data transfers, and alert administrators in real-time. This proactive approach helps to identify and mitigate potential security breaches before they cause significant harm, ensuring donor data remains protected.

 
Improved Data Management
 

AI-driven software can help manage and secure donor data more efficiently. These tools can automate the classification of sensitive information, ensuring that donor data is stored and handled appropriately. By automating data management tasks, nonprofits can reduce the risk of human error, which is often a significant factor in data breaches. AI tools can also enforce data access policies, ensuring that only authorized personnel can access sensitive information.

 
Real-Time Monitoring and Response
 

AI tools provide continuous monitoring of the organization’s digital environment, offering real-time insights into potential security issues. This constant vigilance allows nonprofits to respond quickly to threats, minimizing the window of opportunity for attackers. AI can also automate responses to certain types of threats, such as isolating compromised systems or blocking malicious IP addresses, further enhancing the organization’s security posture.

 
Compliance Support
 

Nonprofits must often comply with various data protection regulations, such as GDPR or CCPA. AI tools can assist in ensuring compliance by monitoring and enforcing data protection policies, generating audit logs, and providing insights into compliance status. This support helps nonprofits avoid costly fines and reputational damage associated with data breaches and regulatory violations.

By using software with built-in AI tools, nonprofits can benefit from advanced security features that are continuously updated to address emerging threats. Most nonprofits lack the resources to maintain the highest level of security for donor data, so working with a trusted software partner gives you access to infrastructure and policies that will keep your donor’s data safe.
 
Choosing software that leverages AI tools, rather than one AI platform, allows organizations to build more robust and efficient financial operations while avoiding the constraints of a one-size-fits-all platform.
 

The Future of is Now

Regardless of how AI develops over the next couple of years, nonprofits can’t afford to adopt a “wait-and-see” approach to implementing new AI tools.
 
Embracing AI tools now offers nonprofits a range of immediate and long-term benefits. From improving efficiency and decision-making to staying competitive and maximizing impact, AI has the potential to transform how nonprofits operate and achieve their goals. By adopting AI technologies proactively, nonprofits can ensure they are well-positioned to navigate the future and continue making a positive difference in their communities.
 
 Citations:
 

*Source: 2024 Work Trend Index Annual Report from Microsoft and LinkedIn

 
 

**Source: “State of Nonprofits 2024: What Funders Need to Know”

 
 

 Additional resources:

 
 
 
 
 
 
 
 
 
 

Date: Tuesday, September 17, 2024

 

Time: 1 pm ET / 10 am PT (1 hour)

 

Cost: Free

 

Presented by: 

 

Michelle Kocin, Digital Marketing Manager at SylogistMission

 

Chris Stevenson, Director of Sales for SylogistMission ERP

 

The nonprofit industry is at an inflection point. Nonprofit fundraisers are already using AI tools, but leaders are searching for the right path forward. According the 2024 Work Trend Index Annual Report from Microsoft and LinkedIn, the use of generative AI has nearly doubled in the last six months alone and 75% of respondents said they use AI tools to help them save time, focus on building relationships rather than administrative tasks, and enjoy their work more.

Many nonprofits lack clear guidance on AI usage meaning the organization misses out on the opportunity to implement AI at scale and the usage of free, open-data model AI tools opens the organization up to data security problems.

This free webinar is essential learning for every nonprofit employee, regardless of title. We’ll preview some of the ways organizations are incorporating AI tools into the software they already use. SylogistMission’s staff will help you to:

 
1.       Understand the power of AI tools for nonprofits
 

2.       Preview real-world applications to increase transparency & demonstrate impact

 

3.       Learn about the magic of natural language

 
 
 
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About Sylogist

Sylogist provides mission-critical SaaS solutions to over 2,000 public sector customers globally across the government, nonprofit, and education verticals. The Company’s stock is traded on the Toronto Stock Exchange under the symbol SYZ. Information about Sylogist, inclusive of full financial statements together with Management’s Discussion and Analysis, can be found at www.sylogist.com.

With over 30 years of experience serving nonprofit organizations, Sylogist understands the unique challenges faced by these entities. SylogistMission ERP, built on Microsoft Dynamics 365 Business Central, reflects our expertise in product development, successful implementations, and exceptional customer service. This specialized approach ensures that SylogistMission precisely caters to the distinctive requirements of nonprofit organizations, setting it apart from repurposed ERP solutions.

 

SylogistMission ERP offers nonprofits a comprehensive solution tailored to their unique needs, backed by the power of the Microsoft Stack and unparalleled expertise in global implementations. Contact us today to learn more about how SylogistMission can support your organization’s mission and drive meaningful change.

 
 

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