From Data to Donors: Can AI Reshape Fundraising Strategies

Abstract

Nonprofit-Organizations (NPOs) must continuously optimize their fundraising strategies to efficiently generate and secure financial resources long-term. Artificial intelligence (AI) is increasingly important, as it could transform fundraising strategies. This research explores AI's potential for strategic fundraising planning in NPOs, based on Gahrmann's (2024) integrated objective setting and planning process. The Technology Acceptance Model (Davis, 1989) and the AI Acceptance Model (Scheuer, 2020) form the theoretical basis for analyzing AI acceptance and use. To gain practical implications for the use of AI in the strategy development of fundraising, communication managers in NPOs were surveyed. In order to derive practical implications for the use of AI in fundraising strategy development, a survey was conducted among communication managers in NPOs, guided by the following research leading question: What potential does artificial intelligence offer communication managers of nonprofit organizations for the development of fundraising strategies? To answer this question, qualitative semi-structured interviews were conducted with two fundraising associations as well as communication and fundraising managers from 14 NPOs in the DACH region (Germany, Austria, Switzerland), and analyzed using qualitative content analysis. Results show that AI is currently a supportive resource, not a replacement for human thinking. Larger AI projects are still in testing, and not all NPOs have clear strategies. Benefits include time savings, increased efficiency, improved analyses, and automation of repetitive tasks, resulting in cost reductions. However, challenges such as ethical concerns, lack of human touch, and potential reputational risks remain. A thorough review is necessary, as AI can generate errors and biases. In the next five years, AI will transform strategy development. Beyond efficiency gains, analyses could be revolutionized, enabling continuous rather than periodic assessments. While the content of strategies will stay the same, increased automation may support individualized donation strategies. Human oversight remains essential for creativity, empathy, and error control. Data protection and transparency will be critical for AI's future use in NPOs.