Digital Fundraising and AI Adoption

Digital fundraising continues to evolve, with charities increasingly adopting AI tools for donor targeting, grant writing and campaign automation. As it stands, the 2024 Charity Digital Skills Report estimates that 41% of charities rate themselves as poor at digital fundraising, but there is growing recognition of its potential to enhance efficiency and reach. AI can help personalise donor engagement, optimise resource allocation and improve decision-making. Data analysis can also give greater visibility and insight into fundraising trends, helping to identify better ways to engage with potential donors and key demographics, whilst a better understanding of the digital ecosystem in general (including use of new and social medial platforms) is paramount for staying in touch with younger demographics and staying relevant in the digital age.

However, implementation requires investment in technology and skills, which may be challenging for smaller organisations. The report identifies a key resource gap, with 64% of smaller charities identifying themselves as being at an ‘early’ stage with digital adoption, as opposed to only 26% of larger charities. Whilst it’s clear that access to digital expertise can be a game changer, trustees will need to balance the need to invest with their responsibilities as stewards of charitable funds in order to achieve best value and ensure funds are deployed appropriately. Charities should explore partnerships and training opportunities to build digital capacity and ensure ethical use of AI. Accountants, auditors and other advisers should consider how they can add value through both digital expertise and experience with related governance issues. Embracing digital innovation will be crucial for future fundraising success but, as with all technological advances, governance will be key to ensuring successful adoption.

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If you have any questions, then please feel free to get in touch with Michaela Johns on 023 8046 1256 or email Michaela Johns.