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AI for Nonprofits: A Guide for Using Data and AI to Drive Smarter Decisions

June 03, 2025 (5 min read)
A cartoon image of a computer sits on a brown desk with a green wall in the background. On the computer screen, there is the word

Running a nonprofit takes more than passion—it takes insight. From identifying potential donors to evaluating program outcomes, data plays a critical role in making informed decisions that truly move your mission forward. 

But let’s face it: nonprofit professionals already wear too many hats. You didn’t go into nonprofit work to spend all your time with numbers. 

Fortunately, artificial intelligence (AI) can work with you and your data to help save time and advance your mission faster. Far from being a human replacement, AI tools are increasing the efficiency of nonprofit professionals across their organizations. In this guide, we take a look at how AI can help you move from data collection to actionable insights that improve decision-making and drive your mission forward: 

Ways to use AI in your nonprofit organization

AI is an ever-evolving technology that mimics human cognitive functions. In other words, AI is uses large amounts of data to process information and generate responses similar to how a human might. While it can't replace you, generative AI can help you speed up work tasks, while maintaining accuracy. 

Let's look at a few different ways AI can help your nonprofit: 

Identify trends

With AI wealth screening tools monitoring news mentions, stock acquisitions, and IPO filings, you can track trends and find people primed to support your cause. For example, let’s say your nonprofit is focused on fighting food insecurity in your city. Perhaps a local CEO has been featured in the news, speaking out about food waste. With the help of AI tools, you see this news quickly, pinpointing an ideal prospect in your area who has the means to contribute to your cause. Using the information, you can personalize your ask and increase the likelihood of a match—in a fraction of the time it normally takes.

Inform prospecting strategies

According to a report by Credit Suisse, at the close of 2022, there were 59.4 million millionaires worldwide, with about 24.5 million in the United States—that’s a lot of potential donors. Using data and AI tools can help streamline the process of finding the right donors by with capabilities like:

  • Scanning records and data
  • Tracking wealth indicators
  • Discovering pathways to warm leads

Strengthen underperforming initiatives

You can’t afford to waste time with organizational inefficiencies or underperforming initiatives when striving to achieve your mission. Just like data and AI tools can quickly extract trends, they can be used to streamline tasks or impact assessment.

Take donor outreach, for example. Writing personalized messages to individuals can be time-consuming, and it’s easy to fall into the trap of sending generic emails that miss the mark. To combat this and make your outreach more strategic and personalized, start by using verified, in-depth donor intelligence, such as data provided by Nexis® for Development Professionals. With access to trusted data, you can uncover donor interests, affiliations, and giving histories—critical details that help your team craft more relevant and compelling outreach.  While a human touch is still essential to fine-tune each message, this process can speed up your outreach, saving you time to build on the relationships once you’ve made the initial connection.

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One of the most powerful ways nonprofits can use data and AI is in evaluating program effectiveness. By analyzing both quantitative and qualitative data, you can measure outcomes, identify what’s working, and pivot away from what’s not. For example, monitoring media coverage and public sentiment around your campaigns can help you assess visibility, community engagement, and alignment with your mission goals. These insights can guide where to double down—and where to reconsider your approach.

Make sense of unstructured data

Organizations are turning to natural language processing (NLP) and machine learning (ML) tools to analyze unstructured data. From social media posts to videos and images, these sources offer a wealth of information that often goes untapped. AI can help surface patterns and trends across these formats, giving you a more holistic view of your audience and impact.

Access to enriched, trustworthy data—from public records and news coverage to donor profiles—also enables nonprofits to make more informed decisions. Whether you're identifying new funding opportunities or refining outreach strategies, having a solid data foundation helps you move from reactive decisions to proactive, strategic action.

By using enriched data from trusted sources, nonprofits can uncover patterns that guide smarter fundraising strategies. In fact, 70% of nonprofits say having access to the right data improves donor targeting and outreach.  When combined with AI, data becomes more than just numbers—it becomes a powerful tool to help your team work smarter, not harder, and stay mission-focused.

Data governance, quality, and ethics when deploying AI for nonprofits

While AI can open up a world of possibilities for nonprofits, it is essential that organizations prioritize data governance, quality, and AI ethics.

This begins with using high-quality, verified data from a reliable source. By working with data that can be integrated into your nonprofit’s existing tools and processes, you enable trusted analysis and distribution.

It is equally important that organizations implement standards for data protection and transparency of AI use. When dealing with data as wealth indicators, your community needs to know that their information is protected. Clearly communicate how AI is being used in your organization and the measures you have in place to protect sensitive information.

From analysis to action

In recent years, data analysis has become a crucial part of nonprofit fundraising. Prioritizing data-driven insights allows you to make informed choices, increasing your ability to achieve your goals. But becoming a data-driven organization takes time and effort, which is why the integration of AI tools has become such a game changer for nonprofits.

By combining high-quality data with the powerful analytical abilities of AI tools, you streamline the time it takes to go from research to action, allowing you to supercharge your organization and crush your fundraising goals. It’s even better when you partner with LexisNexis, which brings you high quality data and powerful technology on one platform. 

To take a deeper look at how generative AI is helping nonprofits advance missions around the world, download the eBook: A Practical Guide for Becoming a Data-Driven Nonprofit.

 

Download the Data-Driven Nonprofit eBook    Buy Nexis+ AI