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Why AI Matters in Modern Fundraising

5 transformative AI insights from Josh Hirsch’s workshop at IFC2024.

Why AI Matters in Modern fundraising? AI is rapidly becoming an essential tool for fundraisers, offering data-driven ways to personalize and optimize outreach. At IFC2024, Josh Hirsch’s “AI for Good” workshop explored the practical applications of AI in enhancing donor engagement, personalizing communications, and maintaining ethical standards. Here are the top five insights from his session to integrate into your fundraising strategy.

1. Streamlining Workflows

AI-driven tools are transforming how fundraisers handle administrative tasks, freeing up valuable time for strategic and donor-focused activities. Josh Hirsch highlighted how tools like Copilot can summarize key data from previous interactions, making it easier to prepare for upcoming meetings. For instance, an AI tool can quickly pull insights from six months of emails with a specific donor, then create an agenda, PowerPoint presentation, and an Excel spreadsheet with relevant KPIs—all based on past exchanges. This kind of automation allows fundraisers to spend less time on routine tasks and more on fostering donor relationships and crafting targeted strategies.

2. Using Sentiment Analysis to Deepen Donor Relationships

Sentiment analysis was another focal point, as it allows fundraisers to gauge the emotions in donor communications, social media interactions, and survey feedback. Tools like ChatGPT can instantly analyze text for sentiment, categorizing responses as positive, neutral, or negative. This insight enables fundraisers to tailor their follow-ups, addressing concerns directly or reinforcing positive engagement. Hirsch pointed out that sentiment analysis helps fundraisers understand donor attitudes at scale, leading to more empathetic and effective communication. Want to learn more? Have a listen to his podcast series.

“The goal of sentiment analysis is to understand and interpret the underlying emotions conveyed in communication… whether it be social media posts, survey emails, or other forms of community feedback.”

 

3. Personalizing Campaigns with Emotional Resonance

AI’s ability to tailor messaging is invaluable for creating donor-specific content. Hirsch demonstrated how AI tools can help fundraisers experiment with different tones and images to evoke desired emotions, like empathy or urgency, in donor appeals. By reverse engineering emotions using sentiment analysis, fundraisers can customize campaigns to fit the unique motivations and preferences of different donor segments, thereby enhancing the impact of their outreach.

“It’s not just about getting the message out there; it’s about creating an emotional connection… We want donors to feel empathy, urgency, or even joy, depending on the campaign.”

 

4. Building Ethical AI Policies to Ensure Responsible Use

Hirsch emphasized the importance of ethical AI policies, particularly concerning data privacy and transparency. As organizations adopt AI for sentiment analysis and content creation, clear guidelines are essential to protect donor data and maintain trust. He suggested developing an AI usage policy that includes privacy and accountability sections, regularly updated to stay aligned with evolving data laws like GDPR. An AI policy helps fundraisers harness AI’s capabilities while safeguarding donor relationships and ensuring compliance.

5. Training Custom AI Models for Continual Improvement

AI is most powerful when it continuously adapts to your organization’s data and goals. Hirsch highlighted the advantages of training AI models like ChatGPT to reflect an organization’s voice and brand, which improves content accuracy and relevance. By feeding tools like ChatGPT with past campaign data, donor profiles, and successful appeals, fundraisers can create an AI “brain” that supports more personalized, efficient, and insightful donor communications.

Josh Hirsch’s workshop at IFC2024 showcased the potential of AI to revolutionize fundraising strategies, from personalized outreach to streamlined administration. By integrating tools like Microsoft Copilot and ChatGPT, fundraisers can enhance efficiency, deepen donor connections, and ensure ethical AI practices. Embracing these insights enables fundraisers to navigate the future of philanthropy with innovation and integrity. 

Read other posts on face-to-face fundraising trends and insights here.