In the ever-evolving digital landscape, nonprofit organizations (NFPs) are increasingly turning to Artificial Intelligence (AI) to enhance their operations, improve decision-making processes, and streamline their services. While AI offers a plethora of opportunities for nonprofits, it also comes with potential pitfalls and ethical considerations.
UTILIZATION OF AI IN NONPROFITS:
Several nonprofits have recognized the transformative potential of AI in achieving their missions more efficiently. The implementation of AI technologies can be seen across various sectors within the nonprofit realm, including fundraising, program delivery, and data analysis.
FUNDRAISING OPTIMIZATION:
AI algorithms can analyze donor behavior, predict trends, and personalize fundraising campaigns. This allows nonprofits to tailor their outreach efforts, resulting in increased donor engagement and more effective fundraising strategies.
PROGRAM EFFICIENCY:
Nonprofits can use AI to streamline program management, automate routine tasks, and analyze vast datasets. This enables organizations to allocate resources more effectively, improve program efficiency, and ultimately enhance the impact of their initiatives.
DATA-DRIVEN DECISION MAKING:
AI tools help nonprofits make informed decisions by analyzing large volumes of data. This can be particularly valuable in areas such as impact assessment, resource allocation, and strategic planning.
PITFALLS AND ETHICAL CONSIDERATIONS:
While AI presents numerous opportunities for nonprofits, it also poses potential challenges and ethical concerns that organizations need to address:
BIAS AND FAIRNESS:
AI algorithms can inadvertently perpetuate biases present in training data. Nonprofits need to be vigilant in ensuring that their AI systems do not discriminate against certain groups or perpetuate social inequalities.
PRIVACY CONCERNS:
The collection and analysis of vast amounts of data raise concerns about privacy. Nonprofits must implement robust data protection measures to safeguard the sensitive information they handle.
LACK OF UNDERSTANDING:
Limited understanding of AI technologies among nonprofit staff can impede successful implementation. Adequate training and education are crucial to ensure that staff can effectively utilize AI tools.
CRAFTING RESPONSIBLE AI POLICIES FOR NONPROFITS:
To navigate the complexities of AI adoption, nonprofits should consider developing comprehensive AI policies. These policies can guide organizations in utilizing AI responsibly and ethically. Key components of such policies may include:
ETHICAL GUIDELINES:
Clearly define ethical principles that guide the use of AI within the organization. This can include commitments to fairness, transparency, and accountability in AI applications.
DATA GOVERNANCE:
Establish protocols for responsible data collection, storage, and sharing. Ensure compliance with relevant data protection regulations to protect the privacy of individuals involved.
TRAINING AND EDUCATION:
Implement training programs to enhance the AI literacy of staff members. Foster a culture of continuous learning to keep up with advancements in AI technologies.
REGULAR AUDITS AND ASSESSMENTS:
Conduct regular audits and assessments of AI systems to identify and rectify potential biases or ethical concerns. This ongoing evaluation ensures that AI applications align with the organization’s values.
AI TRENDS FOR 2024:
Several AI trends are anticipated for 2024. These trends include:
AI-ENABLED PERSONALIZATION:
AI will play a pivotal role in delivering highly personalized experiences, allowing nonprofits to tailor their services and engagement strategies for individual stakeholders.
ETHICAL AI PRACTICES:
The focus on ethical considerations in AI development and deployment is expected to intensify. Nonprofits should proactively address ethical concerns and incorporate responsible AI practices into their policies.
AI-DRIVEN AUTOMATION:
Automation powered by AI is set to become more sophisticated, offering nonprofits opportunities to streamline operations, reduce costs, and enhance overall efficiency.
AI-POWERED DECISION SUPPORT:
AI will increasingly serve as a valuable tool for decision-makers, providing data-driven insights to inform strategic choices within nonprofits.
COLLABORATIVE HUMAN-AI WORKFORCES:
The integration of AI into daily workflows will promote collaboration between human and AI entities, creating synergies that amplify the impact of nonprofit initiatives.
As nonprofits continue to explore the potential of AI, it is crucial to approach this technology with a thoughtful and responsible mindset. By leveraging AI strategically, addressing potential pitfalls, crafting comprehensive policies, and staying informed about the latest AI trends, nonprofits can harness the power of AI to advance their missions and create positive societal impact.
Albert is a member of Cerini & Associates’ audit and consulting practice where he focuses on serving the firm’s special education and nonprofit clients. Albert is also involved in the marketing and development of the firm, and frequently participates in recruiting efforts, and research.
Networking and relationship building have forever been critical practices for nonprofit organizations, their leaders, and other major organizational stakeholders such as board members, community relations professionals, fundraising professionals, and development teams.
In my networking, I have the honor of knowing, connecting with, and collaborating with many leaders of nonprofit organizations which offers perspective through a unique lens. Having interviewed more than 150 nonprofit executive leaders on Philanthropy in Phocus, since January of 2021 – I have been able to gain some unique insights. In my experience in 2023, networking for nonprofit organizations proved to be as important as ever, although at times it looked different than it had looked in the past. Nonprofit organizations, like other businesses network and build relationships for a variety of reasons and with a very specific set of outcomes. In nonprofit organizations, some reasons for networking are:
To grow their donor base
To form alliances with for-profit businesses, government agencies, faith-based organizations, and other mission-driven organizations
To build their brand recognition
Attract board members and volunteers
Professional development
Give back – help others
Attract new employees
When building a networking strategy, while traditional methods work, I see the importance of adopting or continuing to evolve an organization’s use of social media platforms, as well as exploring utilizing Artificial Intelligence programs. Like creating a strategic plan for your organization, it’s also important to consider a strategic plan specifically for your networking initiatives. While meeting new people, making connections, and learning about each other can be fun and exciting, what is important is the idea to create a win-win experience with measurable results.
*Some ideas to consider when planning your networking strategy*
Why are you networking?
Who are you looking to meet?
How will both parties benefit from the connection?
How will you evaluate success?
How will you add value and nurture these relationships?
While pen and notebook can work, spreadsheets and potentially using a CRM system are often beneficial when managing an organization’s relationships. Many organizations use CRMs and donor management tools to manage donor data – I see the opportunity to leverage such tools in networking practices as well. When it comes to the how and where, it is important to identify where, as in what types of groups or events you want to attend, as well as if there is a specific geography focus.
A major boon for nonprofit professionals and others from the COVID era was the high adoption of virtual and hybrid networking events. While many believe that virtual meetings and events may at times lack some level of connection experienced at a live in-person event, I believe that the efficiency and reach of the virtual connection offset some of the shortfalls. To my surprise, I have developed some incredibly strong connections with people that I have yet to meet in person. I have grown my network substantially over the last 3 years, specifically across the US and in some international markets. Not only has this had a positive effect on my business and me – but it also has added value to those in my network by way of introductions that I can facilitate. I know many nonprofits that have grown substantially, created new collaborations, and enhanced programming with much less regard for the geographic distance that may have seemed prohibitive in the past. I also know others who have focused locally and have had success in forming relationships with strategic partners by exploring creativity and innovation.
I expect in 2024 to see continued opportunities for nonprofit professionals to leverage their networks and create and nurture new relationships. I believe that a well-thought-out networking plan and strategic effort can support an organization’s growth and impact in 2024 and beyond!
Many people have heard that your “Network is your net worth” – I have been known to discuss the importance of Social Capital consistently saying things like – “I am only as strong as my network” or “my success is based on the strength of my Social Capital.”
Why is this important? An engaged board is an essential component of a thriving and impactful mission-driven organization. Consider incorporating some of the tactics below into the Board Development part of your strategic plan — this way you can map out what to tackle near-term vs. Y2 or Y3.
TIP #1: Reflect on Your Overall Strategic Goals
Your board of directors should be in alignment with your organization’s strategic goals. Consider a board matrix exercise to identify gaps in skills and representation in order to recruit smarter not harder.
TIP #2: Assess Your Board’s Strengths & Weaknesses
Ensure you have a Roles & Responsibilities document that is reviewed and referenced regularly. This can be a checklist or an agreement. Introduce this during onboarding and store it in a central location.
TIP #4: Reconnect Members to Your Mission
Strengthen your “mission moments” muscle memory: 1) Add a 5-minute “Mission Moment” standing agenda item, 2) Invite your board members in regularly to see your impact first-hand, 3) Share your impact story in a visually appealing way.
Tip #5: Reconnect Members to Each Other
People show up for teammates. Build camaraderie by exploring a “board buddy” tactic, setting up board triads, or holding a half-day retreat.
Tip #6: Offer Board Training
Whether it’s a free webinar or an in-person session, board members need to know their legal duties.
In today’s digital age, with nearly 4 billion social media users worldwide, nonprofit organizations have a golden opportunity to connect with a vast online audience. Leveraging social media can facilitate fundraising, volunteer recruitment, and storytelling to turn readers into followers.
WHY SHOULD NONPROFITS USE SOCIAL MEDIA?
With the massive user base on social media platforms, nonprofits can significantly benefit from online engagement. Social media allows organizations to:
1.) BUILD TRUST:
Demonstrate authenticity and industry knowledge to build trust with followers.
2.) PROMOTE EVENTS:
Share details about in-person or virtual events, from galas to panel discussions.
3.) EXPAND REACH:
Connect with new audiences and share your mission with a broader community.
4.) FUNDRAISING:
Utilize social media fundraising features on platforms like Facebook and Instagram.
Moreover, engaging with nonprofits on social media often leads to action, with 55% of individuals taking some form of action and 59% making donations.
CHOOSING THE RIGHT SOCIAL MEDIA PLATFORM:
Rather than being on every platform, select one or two that cater to your target demographic. Consider:
Specific Goals: Define clear and specific goals for your social media strategy.
Measurable Objectives: Use platform analytics to measure progress.
Attainable Goals: Ensure goals are realistic within your time, budget, and resource constraints.
Relevant Goals: Align goals with your organization’s mission and long-term plans.
Time-Based Deadlines: Set deadlines to stay focused and motivated.
For an effective strategy, break down SMART goals for both the year and specific campaigns.
DEVELOPING A SOCIAL MEDIA CONTENT STRATEGY:
Getting started on social media involves developing a robust content strategy. Follow these key steps:
1.) SET OBJECTIVES:
Clearly define your organization’s goals for being on social media.
2.) IDENTIFY YOUR AUDIENCE:
Understand your current and desired audience to tailor content effectively.
3.) DEVELOP A TONE AND STYLE GUIDE:
Establish consistent branding across all communication channels, maintaining a clear and recognizable identity.
4.) CREATE A CONTENT CALENDAR:
Plan posts in advance, considering timing and engagement for consistent and successful strategies.
SOCIAL MEDIA WORKFLOW FOR CONTENT CREATION:
Outline a content creation workflow to track tasks from brainstorming to post scheduling. This process informs your content calendar and serves as a tool for team management, collaboration, and analysis.
Define Tasks: Identify tasks from brainstorming to scheduling posts.
Assign Tasks: Allocate tasks to team members with defined timelines.
Facilitate Collaboration: Encourage collaborative work sessions, community engagement, and peer reviews.
Archive and Analyze: Utilize the workflow for archiving and reporting purposes.
PREPARING SOCIAL MEDIA CONTENT IN ADVANCE:
Decide how far in advance to prepare content, recommending at least 3-4 weeks to gather assets, write copy, get approvals, and plan community management strategies. Align your planning timeline with your workflow steps.
ENSURING TEAM COLLABORATION:
Make your social media calendar easily accessible and editable for team members. Encourage collaboration and maintain a tidy calendar by adding sections for comments, questions, and notes.
BEST PRACTICES FOR RUNNING SOCIAL MEDIA FOR NONPROFITS:
Enhance your nonprofit’s social media presence with these best practices:
Share Stories of Impact: Illustrate the direct impact of your work through powerful stories.
Post Shareable Content: Encourage followers to share your content to reach new audiences.
Check Other Nonprofit Organizations for Inspiration: Learn from successful nonprofit strategies and adapt them to your needs.
MEASURING SUCCESS AND RUNNING EFFECTIVE CAMPAIGNS:
Experiment and monitor different post types to determine what works best. Utilize analytics provided by social media platforms to measure engagement, track likes, comments, new follows, views, video metrics, and click-through rates.
Social media can be a game-changer for nonprofits, providing a powerful tool to achieve goals and reach new audiences. While building an effective social media plan requires trial and error, patience, and adaptability, the benefits for expanding your organization’s reach and deepening connections with donors and stakeholders are well worth the effort. With these resources and insights, nonprofits can run impactful and successful social media strategies.
Kelli-Anne is a Manager for Cerini & Associates’ marketing staff. She oversees all marketing and communications efforts for the firm. Kelli-Anne is heavily involved in firm operations, recruitment, and development. She work’s with the firm’s various services areas and management team to define and meet growth goals, as well as working to help organize and promote the Long Island and New York City Imagine Awards.
The Veteran Peer Mentor is an individual who has served in the United States Armed Forces (preferably including at least one tour of duty), who can serve as a positive example, and is committed to assisting other veterans, and their family members in
As we embark on the journey through 2024, nonprofits are faced with an ever-evolving fundraising landscape, marked by dynamic shifts and emerging trends. In addition to the previously discussed strategies, several other factors will play a crucial role in shaping the trajectory of nonprofit fundraising efforts in the coming year.
1.) THE BOUNCE-BACK EFFECT:
Reversing the Giving Decline: In 2022, Giving USA reported a significant 10.4% decrease in charitable giving when adjusted for inflation. However, 2023 showed signs of recovery, projecting an increase of 5-6% in overall giving. Should the economy maintain its upward trajectory, 2024 is likely to witness further growth in charitable contributions, marking a positive reversal of the previous decline. Discussion of allowing charitable contributions for non-itemizers could spur fundraising even more.
2.) THE POLITICAL PULSE: ELECTION YEAR GIVING IN 2024:
With 2024 looming as a charged election year, political and voting rights organizations are poised to witness a spike in donations. Historically, election years have galvanized donors, and given the current heightened political climate, this trend is set to intensify. Nonprofits operating in these spheres should leverage this opportunity to advance their causes and expand their impacts.
3.) EMBRACING INCLUSIVITY: DIVERSITY IN LEADERSHIP AND DONORS:
The call for diverse board leadership and donor representation has been a high priority for many organizations over the past few years. The demand for inclusivity will remain a priority and cornerstone for organizations seeking to diversify their donor base and have a more profound impact. Embracing diversity ensures a broader perspective and a richer understanding of the communities served.
4.) THE RISE OF DONOR-ADVISED FUNDS:
Donor-advised funds (DAFs) are becoming a preferred giving vehicle for many donors as they offer flexibility, tax benefits, and the allure of strategic philanthropy. Their popularity is only expected to grow, making them a crucial consideration for nonprofits seeking diversified funding sources. Understanding how to engage with donors utilizing DAFs can unlock new avenues for financial support.
5.) THE GREAT WEALTH TRANSFER & PLANNED GIVING:
The baby boomer generation is amid a monumental wealth transfer to younger generations. This presents a golden opportunity for nonprofits to unlock the potential of planned giving and blended giving strategies, ensuring long-term financial stability and enduring donor engagement. Crafting compelling narratives around legacy giving will be essential in capturing this generational wealth transition.
6.) THE POWER OF CAMPAIGNS:
With their targeted approach and compelling narratives, campaigns have always been one of the most powerful tools in a fundraiser’s toolkit. As the economy strengthens and wealth is transferred between generations, campaigns will be more pivotal in rallying support and driving donations. Nonprofits should invest in strategic campaign planning to maximize their impact and reach.
7.) GENERATIONAL LEADERSHIP SHIFT:
The torch of board leadership is passing from older generations to their successors. This transition brings fresh perspectives, innovative strategies, and a renewed commitment to the organization’s mission. The board will need next-generation prospects on the bench as succession occurs at the board level. Nurturing and mentoring the next wave of leaders will be essential for organizational continuity and innovation.
8.) AI: FUNDRAISING’S SILENT REVOLUTION:
Artificial Intelligence (AI) is no longer a futuristic concept but a present-day reality. In fundraising, AI promises enhanced productivity, data-driven strategies, and personalized donor engagement. Organizations that harness the power of AI will undoubtedly be a step ahead in their fundraising endeavors, streamlining processes and improving the overall donor experience.
9.) THE WIDENING GAP: DISPARITIES IN GIVING:
The traditional 80/20 rule, where 80% of donations come from 20% of donors, is shifting towards a 90/10 divide. This growing disparity underscores the importance of nurturing major donors while cultivating a broader donor base. It is the key to ensuring sustainability and balance in philanthropic ecosystems. Nonprofits must adopt strategies that bridge this gap, ensuring a more inclusive and sustainable funding model.
10.) THE DOMINANCE OF INDIVIDUAL GIVING:
The Giving USA report highlighted that 64% of all donations came from individuals. This trend is set to persist, with major gifts offering the highest Return on Investment (ROI). For nonprofits, this means prioritizing individual donor relationships and crafting tailored strategies to nurture major gifts. Building strong connections with individual donors remains fundamental to a successful fundraising strategy.
11.) DIGITAL PHILANTHROPY TAKES CENTER STAGE:
In our increasingly interconnected world, digital philanthropy is witnessing a surge. The fusion of technology and altruism enables donors to contribute effortlessly. Crowdfunding platforms, blockchain-driven transparency, and virtual reality experiences that allow donors to witness the impact of their contributions firsthand are becoming central to philanthropic initiatives. Nonprofits must embrace digital strategies to meet donors where they are and provide seamless, immersive giving experiences.
12.) IMPACT INVESTING GAINS MOMENTUM:
The concept of “doing well by doing good” is becoming even more prevalent in 2024. Impact investing, where financial returns are combined with measurable social or environmental benefits, attracts socially conscious investors seeking both financial growth and positive global change. Nonprofits can align their missions with impact investors, emphasizing measurable outcomes and sustainable solutions.
13.) DECENTRALIZED PHILANTHROPY:
Blockchain technology continues to disrupt traditional philanthropy, introducing transparency and security. Decentralized autonomous organizations (DAOs) enable communities to collaborate, make decisions, and allocate resources collectively, promoting democratic giving and trust. Nonprofits can explore the potential of decentralized platforms to engage communities directly and foster a sense of shared responsibility.
14.) PERSONALIZED PHILANTHROPY JOURNEYS:
Donors now demand more than just transparency; they seek personalized experiences. Nonprofits are leveraging AI and data analytics to tailor their communications, offering donors the opportunity to engage in projects that align with their passions and values. Creating individualized philanthropy journeys fosters stronger connections and encourages long-term donor commitment.
15.) CIRCULAR PHILANTHROPY AND SUSTAINABILITY:
With growing environmental concerns, philanthropy is increasingly focusing on sustainability and circular economies. Donors are funding projects that aim to reduce waste, promote recycling, and support eco-friendly initiatives. Nonprofits should align their initiatives with sustainability goals to attract environmentally conscious donors and contribute to a greener future.
16.) COLLABORATIVE PHILANTHROPY ECOSYSTEMS:
Philanthropic organizations in 2024 are fostering greater collaboration. The focus is shifting from competition to synergy as nonprofits, governments, corporations, and individuals work together to address complex global challenges. Collaborative efforts amplify impact and create holistic solutions.
17.) PHILANTHROCAPITALISM EVOLVES:
The era of philanthrocapitalism continues to evolve as mega-philanthropists strategically allocate vast resources. The line between public and private sectors blurs, reshaping global social and economic systems. Nonprofits need to navigate this evolving landscape by understanding and adapting to new funding dynamics.
18.) VIRTUAL REALITY FOR EMPATHY AND EDUCATION:
Virtual reality is harnessed to cultivate empathy and awareness among donors. By immersing themselves in the stories of beneficiaries, donors gain a deeper understanding of the issues they are addressing, leading to more informed and compassionate giving. Nonprofits can use VR to create impactful storytelling experiences that resonate with donors on a profound level.
19.) INCLUSIVE GIVING AND DIVERSITY:
Diversity, equity, and inclusion (DEI) take center stage in philanthropy. Organizations prioritize diverse leadership, foster inclusive practices, and fund projects that address systemic inequalities. Ensuring that philanthropy benefits all is not just a moral imperative but a strategic necessity.
20.) DATA-DRIVEN PHILANTHROPY:
Data analytics play an increasingly pivotal role in philanthropic decision-making. Donors and organizations use data to measure the impact of their contributions, refine strategies, and optimize resource allocation. Nonprofits should invest in robust data analytics capabilities to demonstrate accountability and maximize their effectiveness.
21.) PHILANTHROPY IN THE METAVERSE:
As the metaverse emerges, philanthropy follows suit. Virtual worlds provide new avenues for charitable giving and community engagement. Expect to see digital charity events, virtual fundraisers, and immersive philanthropic experiences in this novel landscape. Nonprofits can explore innovative ways to leverage the metaverse for fundraising and community-building.
22.) PEER TO PEER FUNDRAISING:
Peer-to-peer fundraising is a dynamic strategy where supporters raise funds on behalf of a nonprofit. Beyond traditional events, it offers diverse formats like “It Takes a Village: Using Peer-to-Peer to End Homelessness.” Donors create individual or team pages, leveraging their networks to collect funds. Qgiv reports that peer-to-peer drives 50% of new donor interactions, making it a valuable tool for acquiring new donors and building a major gift pipeline for nonprofits.
In conclusion, the philanthropic landscape of 2024 is dynamic and multifaceted. Nonprofit organizations must remain agile, embrace technological advancements, and align their strategies with the evolving preferences and priorities of donors to maximize their impact and drive positive change in an ever-changing world.
Mahnaz has been a member of Cerini & Associates’ audit and consulting practice area for over 8 years where she focuses on serving nonprofit organizations, education, and healthcare clientele. Mahnaz has experience in financial statement audits, financial statement reviews, tax return preparation, cost report filing, and other consulting. Mahnaz brings her expertise, diversified background, and helpful approach to all of her engagements.
As corporations increasingly recognize the value of supporting employees in nonprofit board service, the contours of effective board service programs are taking shape. Such programs not only signify a commitment to community engagement but also serve as catalysts for transformative leadership development.
UNDERSTANDING THE COMMUNITY AND ITS NEEDS:
For a board service program to be impactful, companies must first understand the communities they aim to support. This involves learning from nonprofit partners and community leaders, aligning the company’s work with the identified needs of the community, and considering power dynamics within partnerships. By centering feedback from these communities, companies can ensure that their board service programs are relevant and responsive to the actual needs on the ground.
CONVEYING THE WEIGHT OF THE ROLE:
Encouraging employees to grasp the responsibilities and time commitment associated with board service is crucial. Board service demands an average of 8 to 10 hours per month, with typical terms lasting two to three years. It emphasizes the need to set clear expectations for employees, making them aware of fiduciary responsibilities and the potential risks involved. Board service is a collective effort requiring dedicated members to collaboratively steer the organization toward its mission.
OFFERING RESOURCES AND TRAINING:
Success in board service hinges on providing employees with the necessary resources and training. Companies can tailor these offerings based on the target population and the team’s capacity. Hands-on placement for high-level leaders and executives, accompanied by informative materials outlining board roles, responsibilities, and risks, as well as insight into the organization’s missions and cultures, will go a long way in developing appropriate and meaningful board experiences. This comprehensive approach ensures that employees are well-prepared for their board service journey.
MATCHING GIFTS AND HOURS OF SERVICE:
To encourage more employees to participate in board service, companies can consider matching gifts and hours of service. This reflects a commitment to community impact while also addressing financial barriers that may deter some employees. The article stresses the importance of clearly outlining policies related to matching gifts and donations, setting expectations for those interested in service.
MITIGATING RISKS AND ENSURING SUCCESS:
Companies also need to acknowledge the high stakes involved in board service programs with an emphasis on evaluating associated risks and developing strategies to mitigate them. This strategic approach ensures that both the company and board members navigate potential challenges effectively.
In a post-pandemic economy, volunteer engagement strategies must be adaptable and purposeful. A successful board service program, with the right training and resources, can be a flagship initiative. Such programs empower employees to acquire new skills, accelerate leadership development, and build resilient nonprofit partners, all while contributing to the company’s commitment to community impact. By embracing diverse volunteer opportunities, including nonprofit board service, companies can cultivate a culture of purpose that resonates with employees and fosters lasting community impact.
Tania Quigley has been a member of Cerini & Associates’ audit and consulting practice area since 2005 where she focuses on serving the firms nonprofit and employee benefit plan clientele. Tania has experience in performing financial statement audits and reviews, tax return preparation, cost report preparation and filing, retirement plan audits, and other consulting. Tania brings her expertise, diversified background, and helpful approach to all of her engagements.
