Sponsored Content: Your People, Your Data, Your Technology

Finding the space to grow in times of uncertainty

Here we are again, in yet another unprecedented time. It goes without saying that economic fluctuations, geopolitical changes, and global events have significantly impacted the global nonprofit fundraising landscape. According to recent reports:

• Donor counts continue to decline, with small donors down by 12.4% and donor retention decreasing by 4.6%.¹
• Additionally, 74% of nonprofits reported job vacancies that they are having a difficult time filling.²
• Nonprofit workers report being stressed and burnt out.³

In the face of these challenges and growing external pressures, it’s important to remember that resiliency is built into the DNA of the nonprofit sector, its workers, and its mission-based focus and execution. We’ve weathered economic recessions, global pandemics, and funding challenges and come out ahead―read on to leverage the best practices that our fastest-growing nonprofit partners are using to stay differentiated and to pivot in a direction of stable growth.

Leveraging what we know: Get personal to improve donor relations

Sometimes, the engagement practices that work time and time again are the most challenging to deliver during times of staffing shortages. At the top of this list? Building strong relationships with donors through personalized communication and engagement. While 77% of nonprofits believe personalizing donor communication is critical, only 44% are “always” personalizing communications.4 Leverage all clues, past campaigns, volunteer engagement, and past cause and mission data collected about your donors and prospects to craft a relevant solicitation strategy.

Technology as your donor relations copilot

At the end of the day, your donors and supporters drive institutional transformation, but technology can and should be a critical supporting player. In the last year and a half since generative AI became widely available to the general public, we’ve seen significant advancements in how nonprofits leverage AI to enhance their operations, giving nonprofit staff the time and space to expand prospect pipeline and funding channels.

At the end of the day, your donors and supporters  drive institutional transformation, but technology can and  should be a critical supporting player.

In a 2024 global survey of 1,440 nonprofit employees, 92% believed that AI would enhance their engagement with end users, and about 30% said that AI helped boost their fundraising revenue in the past 12 months.5 So what are you waiting for―get creative! AI is your copilot, so use it to craft personalized proposals, funding opportunities, and matching challenges. More food for thought―50% of nonprofits are employing AI tools for data management, data visualization, and data analysis, enabling them to more effectively measure their impact and communicate impact transparently to funders, identify future trends, and allocate resources on the frontlines of their mission.⁶

At Microsoft, our Tech for Social Impact team has the great joy of participating in this transformation firsthand. We have seen AI productivity benefits across the organizations who partner with us. In the fundraising space specifically, National Zakat Foundation has implemented AI to automate routine tasks, improve data management, and provide better support to their beneficiaries, ultimately increasing their efficiency and effectiveness. AI has also helped the foundation improve their fundraising efforts by analyzing donor data and personalizing communication, leading to increased donor engagement and contributions.⁷

AI is your copilot, so use it to craft personalized proposals, funding opportunities, and matching challenges.

One cautionary note, according to the 2024 Work Trend Index Annual Report, 78% of AI users are bringing their own AI tools to work. That number jumps to 80% for small and medium-sized organizations.8 So, if your organization is behind the trends, your workers are taking matters into their own hands, and you may need to play catch up to ensure your organization is following a secure, responsible, and ethical AI diffusion plan.

Getting started with AI

Like any new initiative or implementation, getting started can be the most challenging part. If you’re unsure where to begin leveraging AI to enhance your fundraising efforts, here are a few ways to get started:

• Define clear objectives: Start by identifying specific challenges or goals where AI can make a measurable difference. Whether it’s improving donor communication, automating repetitive tasks, or enhancing data analysis, having well-defined objectives ensures that your AI adoption aligns with your mission.
• Start small and scale gradually: Begin with a pilot project that focuses on a single aspect of your operations, such as customizing email responses or analyzing fundraising trends. By starting small, you can test the waters, measure results, and build confidence before expanding AI implementation across your organization.
• Invest in training and collaboration: Empower your team with the knowledge and skills to effectively utilize AI tools. Provide training sessions (leveraging free resources and courses through programs like aka.ms/NonprofitSkills), foster collaboration between technical and non-technical staff, and explore partnerships with technology providers to ensure a smooth transition and maximize benefits.

By taking these steps, nonprofit staff can harness AI to spend more time on the activities that matter most, ultimately driving their missions forward with greater impact. To learn more about how you can leverage grants and discounts to support your technology journey, read further about Microsoft’s commitment to nonprofits at www.microsoft.com/nonprofits.

References

¹AFP Global. “FEP Data for Q3 2024 Shows More Dollars Coming from Fewer Donors in a Continuing Trend.” Published December 19, 2024. Accessed April 22, 2025. afpglobal.org/FundraisingEffectivenessProject.

²National Council of Nonprofits. 2023 Nonprofit Workforce Survey Results. Accessed April 22, 2025. councilofnonprofits.org/files/media/documents/2023/2023-nonprofit-workforce-survey-results.pdf.

³Stiffman, Eden. “Financial Climate and Trust Issues Trouble Nonprofit Sector, Report Finds.” The Chronicle of Philanthropy. Published November 13, 2023. Accessed April 22, 2025. philanthropy.com/article/financial-climate-and-trust-issues-trouble-nonprofit-sector-report-finds.

⁴Twilio. 2024 State of Nonprofit Digital Engagement Report. Accessed April 22, 2025. twilio.com/en-us/lp/state-of-nonprofit-digital-engagement/report.

⁵Twilio. 2024 State of Nonprofit Digital Engagement Report. Accessed April 22, 2025. twilio.com/en-us/lp/state-of-nonprofit-digital-engagement/report.

⁶Intentional Futures. 2024.

⁷Microsoft. National Zakat Foundation Reaches Muslims in Need 80% Faster with Microsoft Automation. Accessed April 22, 2025. microsoft.com/en/customers/story/23068-national-zakat-foundation-microsoft-copilot-studio.

⁸Microsoft. AI at Work Is Here. Now Comes the Hard Part. 2024 Work Trend Index Annual Report. Accessed April 22, 2025. microsoft.com/en-us/worklab/work-trend-index/ai-at-work-is-here-now-comes-the-hard-part.

Read more about how to use AI in nonprofit fundraising in Nine Steps to Optimize Your Fundraising and Marketing Campaigns with AI (aka.ms/AFP25-ebook).