Report: Funders Back AI for Philanthropy, Urge Responsible Use

Artificial intelligence is rapidly reshaping every corner of the social good sector, from how funders evaluate impact to how nonprofits engage supporters. A new report from social impact technology leader Bonterra, titled “The AI Readiness Path: Key Insights for Nonprofits and Funders,” captures this moment of excitement and uncertainty: 91% of funders believe AI will positively transform philanthropy, corporate social responsibility (CSR), and grantmaking within three years, yet nearly as many express concern over how technology could use nonprofit data or deepen inequities.

The report brings together two studies: one conducted by Hanover Research, which surveyed CSR and grantmaking program leaders and decision-makers, and another internal study by Bonterra, which surveyed nonprofits about their experiences with and expectations of AI. Key findings reveal both widespread adoption and strong optimism:

• 91% of funders expect AI to have a positive impact within the next three years.
• 83% already have a positive perception of AI as a streamlining tool (e.g., monitoring budget allocations, evaluating program effectiveness, and visualizing impact data).
• 85% believe AI will help nonprofits optimize their grant applications.
• 87% agree AI use will benefit the overall efficacy of CSR initiatives and grantmaking.

“Funders and nonprofits are excited about AI’s potential but mindful of its challenges,” said Scott Brighton, CEO at Bonterra. “AI is fueling what we call the Generosity Generation, where data, insight, and human connection converge for greater impact. To adopt AI responsibly, nonprofits must prioritize data quality, transparency, and scalability. Funders are urging these steps, and Bonterra is committed to guiding organizations through challenges like cost, privacy, and automation risks so they can harness AI effectively.”

Balancing the Benefits and Barriers

The study highlights both opportunities and areas for caution:

• Top benefits: stronger nonprofit–corporate connections through volunteer and donation matching (84%), optimized grant applications and proposal quality (85%), improved data quality (64%), more accurate decision-making (61%) and better predictions of project outcomes (51%).
• Desired future uses: automating volunteer matching (91%), spending tracking (87%) and employee donation matching (83%) — all areas where funders see significant potential for efficiency and impact.
• Key challenges: concerns about how AI might use nonprofit data (92%), high technology costs (40%), over-reliance on automation (40%), trust in the delivery of accurate results (21%), and meeting regulatory requirements (30%).
• Top advice for nonprofits: prioritize data quality and security (82%), ensure transparency in decision-making (83%) and provide staff with adequate AI training to build trust (93%).

“Funders are embracing AI, but they’re also pragmatic,” said Kimberly O'Donnell, chief fundraising and engagement officer at Bonterra. “Many have already put effective safeguards in place, like transparency requirements and ethical guidelines, to reduce risks. Nonprofits can build on these practices by setting clear strategies for cost-effectiveness, human oversight, and data privacy, ensuring even resource-limited organizations can adopt AI responsibly and with confidence.”

Bonterra’s Commitment to Human-Led AI

With nearly a decade of experience in AI-driven predictive fundraising models, Bonterra recently introduced Bonterra Que, the first fully agentic AI for the social good sector, designed to work within the tools nonprofits already use every day. Unlike generative AI tools, Que functions like an embedded teammate and can take action on behalf of staff, always under human direction.

As part of a broader movement reflected in this campaign, Que demonstrates how nonprofits, funders, and supporters can responsibly harness AI to turn insight into action in their communities. With an unwavering commitment to uphold these standards, Bonterra integrates responsibility into every stage of design and deployment. Ultimately, accountability is non-negotiable; AI simply must be ethical, secure and sustainable because anything less puts clients’ missions at risk.

Download “The AI Readiness Path: Key Insights for Nonprofits and Funders,” report here.

Source: Bonterra

The preceding press release was provided by a company unaffiliated with NonProfit PRO. The views expressed within may not directly reflect the thoughts or opinions of the staff of NonProfit PRO.