Skip to main content

Donor Perceptions of AI: Key Findings

Insights from 1,006 current US donors on the future of AI in philanthropy

Preferred citation: Koshy & Chappell, Donor Perceptions of AI, 2024

Key Findings

This comprehensive study reveals a complex landscape of donor attitudes towards AI in the charitable sector. While there’s significant potential for AI to enhance nonprofit operations, organizations must navigate substantial donor concerns about privacy, human interaction, and ethical implications. Over 82% of donors are familiar with AI, yet its implementation could potentially decrease donations from 31.4% of respondents. Fraud detection and operational efficiency are seen as the most promising applications of AI in charities.

Methodology

This study employed a quantitative approach, surveying 1,006 individuals who had made charitable donations in the past 12 months. The study was conducted in August 2024, using a managed sampling service to ensure data quality. Respondents were asked about their familiarity with AI, concerns about its use in charities, perceived benefits, and how it might impact their giving behavior.

The research, spearheaded by Cherian Koshy and Nathan Chappell, aims to bridge the gap between technological innovation by understanding and analyzing donor sentiment in the charitable sector through quantitative measures. This study was self-funded to ensure objectivity and mitigate perceived bias. While both Koshy and Chappell are associated with notable organizations in the nonprofit sector, the conclusions and recommendations presented herein do not represent the official views of Kindsight, DonorSearch, or Fundraising.AI

AI Familiarity Among Donors

AI Familiarity Among Donors Very Familiar (31.6%) Somewhat Familiar (50.8%) Not Very Familiar (14.6%) Not at All Familiar (3.0%)

Over 82% of respondents reported being somewhat or very familiar with AI, indicating high awareness among donors.

Top Donor Concerns

Top Donor Concerns About AI in Charities 0% 30% 60% Privacy and Data Security (60.0%) Lack of Human Touch (60.2%) Job Displacement (43.3%)

Donors express significant concerns about data privacy 60.0% and the potential loss of personal interaction 60.2% in charitable giving.

AI’s Potential Benefits

AI’s Potential Benefits in Charitable Organizations 0% 25% 50% Fraud Detection (48.3%) Operational Efficiency (44.7%) Impact Measurement (33.8%)

Donors see significant potential for AI to enhance charitable organizations’ effectiveness, particularly in fraud detection 48.3% and operational efficiency 44.7%.

Impact on Giving Behavior

Impact of AI on Donor Giving Behavior More Likely to Donate (9.0%) Less Likely to Donate (31.4%) No Effect (34.3%) Depends on AI Use (25.2%)

Most donors 43.3% respond that AI use would have a positive or neutral effect on their giving. The various ways of implementing AI in fundraising operations may have varied effects on donor behavior: 9.0% more likely to donate, 31.4% less likely, 34.3% no effect, and 25.2% depends on AI use.