Artificial Intelligence (AI) is revolutionising fundraising. It’s helping charities personalise donor journeys, optimise campaigns, and even predict who’s most likely to give. Sounds amazing, right? But as AI becomes more powerful, it also raises a question that’s too big to ignore: where do we draw the ethical line?
AI is only as ethical as the people and organisations using it. When it comes to fundraising, the stakes are high. You’re dealing with sensitive data, building trust with donors, and navigating a delicate balance between innovation and integrity.
Let’s talk about what ethical challenges charities face with AI, why they matter, and how to stay on the right side of the line without losing the powerful benefits of this technology.
Why AI Ethics Matter in Fundraising
1. You’re Dealing with Sensitive Data
Charities hold a goldmine of personal donor information: donation histories, email addresses, giving patterns, and sometimes even things like household income or family details. While this data is critical for personalising campaigns, it’s also a huge responsibility.
One breach of trust, whether it’s a data leak or overly intrusive use of personal information, can damage your reputation and erode donor confidence.
Example:
A charity uses AI to analyse donor data and predict who’s likely to leave a bequest. But instead of approaching this group carefully, they send out a blanket email that makes people feel uncomfortable and, frankly, creeped out.
The result? The charity loses trust with its donors, and some even unsubscribe from future communications.
2. Donors Expect Transparency
We’re living in an age where people demand to know how their data is being used. If donors feel like AI is being used in a manipulative or secretive way, they’ll hesitate to give—and rightly so.
Example:
Imagine a donor discovers their behaviour on a charity’s website was tracked to predict how much they might give. If this wasn’t disclosed clearly, they might feel violated, even if the intent wasn’t harmful.
3. AI Can Cross the Line into Exploitation
When AI gets too good at targeting, there’s a risk of pressuring vulnerable donors. For example, AI might identify an elderly supporter who frequently gives small amounts and start bombarding them with high-pressure appeals.
Why This Matters:
Charities need to be especially careful when engaging with vulnerable groups. What might seem like “effective fundraising” can quickly cross into unethical territory.
Key Ethical Challenges
1. Privacy and Data Protection
AI thrives on data, but with data comes the responsibility to handle it with care. The rise of AI has made donors more cautious about how their information is stored, shared, and used.
- The Line to Watch:
Use data to enhance donor experiences, but never in a way that feels invasive.
2. Bias in AI Models
AI learns from the data it’s fed, and if that data has biases, the outcomes will too. For example, if your donor database skews towards a specific demographic, your AI might unintentionally prioritise campaigns that exclude other groups.
- The Line to Watch:
Ensure your AI models are reviewed regularly for bias and include diverse data inputs.
3. Balancing Personalisation with Consent
Hyper-personalisation is a double-edged sword. While donors love personalised experiences, there’s a fine line between being helpful and being intrusive.
- The Line to Watch:
Always give donors control over how their data is used. Make opt-in and opt-out options clear and accessible.
How to Use AI Ethically in Fundraising
1. Prioritise Transparency
Donors should never have to guess how their data is being used. Be upfront about what you’re collecting, why you’re collecting it, and how it’s being used to improve their experience.
- Example: Include a simple statement in your donation forms and emails:
“We use your information to provide personalised updates about the causes you care about. You can adjust your preferences anytime.”
2. Implement a Data Ethics Policy
Create a clear policy outlining how your organisation uses AI and data. Share this policy publicly to build trust with donors.
- Example: A charity might commit to never selling donor data, only using AI for ethical purposes, and regularly auditing their AI tools to ensure compliance with privacy laws.
3. Test for Bias Regularly
Run regular audits on your AI tools to check for unintended biases. For example, ensure your AI isn’t prioritising high-income donors at the expense of smaller contributors who still care deeply about your mission.
4. Train Your Team
AI isn’t a “set it and forget it” tool. Make sure your team understands both the capabilities and limitations of the technology. Ethics should be a key part of this training.
Scenario: Using AI Ethically and Effectively
The Charity:
A children’s education organisation wants to run a campaign to raise funds for underprivileged students.
The Approach:
- Transparent Communication:
They include a clear message in their emails:
“We use data to ensure your support is going to the areas you care about most. Here’s how we personalise your experience while protecting your privacy.” - Careful Targeting:
Instead of bombarding potential donors, they use AI to identify their most engaged supporters. These individuals receive tailored messages about specific scholarship programs they’ve supported in the past. - Regular Audits:
The charity reviews its AI outputs to ensure that their campaigns aren’t unintentionally excluding certain demographics or over-targeting specific groups.
The Result:
The campaign raises $250,000—while maintaining donor trust and building stronger relationships for the future.
Final Thoughts
AI is a powerful tool for fundraising, but with great power comes great responsibility. Ethical fundraising isn’t just the right thing to do—it’s also the smart thing to do. When donors trust you, they’re more likely to support you.
As Carlos says: “The future of fundraising isn’t just about what we can do with AI—it’s about what we should do. Trust and ethics aren’t optional—they’re essential.”