With all the AI banter, (which I’ve personally given oxygen to), it's easy to get caught up in the excitement of what AI can do and miss the mark when it comes to how to use it both effectively and carefully in the Not-for-Profit (NFP) sector. AI's not a magic wand, and using it wisely means knowing where it fits and, where it doesn't.

As my experience builds in the space, I thought I’d share some insights from work we have completed recently.

Examining major players such as Microsoft, it's evident that their approach to AI for NFPs revolves around crafting AI tools tailored for fundraising and donor management. The underlying concept is to streamline and economise the various tasks. However, a crucial caveat exists – if these tools do not align with the specific needs of the NFP, there's a risk of investing time and money into a solution that may not deliver the intended efficiencies, potentially leading to wastage rather than savings.

Internationally, the National Eating Disorders Association implemented Tessa, a chatbot powered by a Large Language Model (LLM), to address a surge in hotline calls amid the COVID-19 pandemic. While the initiative was well-intentioned, it unfortunately did not unfold as expected. Regrettably, Tessa dispensed advice that proved not only unhelpful but also detrimental. This serves as a classic illustration of how well-intentioned AI innovations can take an unfavourable turn when not properly supervised.

On the flip side, Greenpeace Australia got it right with their AI use. They teamed up with Dataro, a fundraising intelligence engine, to improve their donations. The AI helped them figure out who was likely to continue to donate and who was likely to cease. By targeting the right people, they got better at raising funds and keeping donors around​​ driving essential revenue for the organisation.

So, what's the best way to use AI in your not-for-profit? It boils down to a few things:

• Know your needs. Don't just jump on the AI bandwagon because it's trendy. Ask yourself if AI will solve a real problem you have.
• Understand what AI can and can't do. It's not all-powerful. It's a tool, and like any tool, it’s great for some jobs and not for others.
• Keep an eye on ethics. AI is a powerful tool, but it has to be used responsibly. Make sure your AI use respects the user’s privacy, is fair, and transparent.

In the end, AI has lots of potential to help not-for-profits to do more and do it better. But it's not a one-size-fits-all solution. Think of it like a Swiss Army knife. It's got a bunch of useful tools, but you've got to pick the right one for the job at hand. If you do that, AI can help make your not-for-profit more effective and efficient.