The Philanthropy Network Newsletter

The Philanthropy Network Newsletter

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The Philanthropy Network Newsletter
The Philanthropy Network Newsletter
Say "no" to AI Fundraising "Bots"

Say "no" to AI Fundraising "Bots"

And why CASE and AFP should ban them in fundraising.

Brad Smith's avatar
Brad Smith
Sep 12, 2024
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The Philanthropy Network Newsletter
The Philanthropy Network Newsletter
Say "no" to AI Fundraising "Bots"
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This was my home office set up from 2007-2011 inclusive. AI Generated of course. I do not miss that Palm Pilot, though. it was like carrying around a anvil.

OK, so let’s start by saying that when it comes to tech tools, I’m an early adopter. In fact, back in 2007 I became MIT’s first “hybrid/remote” fundraising professional. I went about my day trying to optimize my dial-up connection to connect to our on-campus database, MIT’s new fangled VOIP system let me forward on-campus calls to my Skype number, and I managed my email on my three hundred pound Palm Pilot (dang, that thing was heavy!).

Fast forward to today and I use TOME to draft presentations, Grammarly Go for editing, Spark+ AI to organize my email, Pilot automates my accounting, DocuSign manages my contracts, and the magic elves in ZOOM transcribe and summarize all my ZOOM meetings.

That’s a lot of tech right there.

But recently I’ve read about the proliferating use of ChatBots and AI as stand-ins for human fundraisers. This, at least to me, is a potentially catastrophic development for fundraising and for the entire non-profit industry in general.

FIrst let’s talk about how we got here and why this is such a problem.

There is no doubt that Artificial Intelligence (AI) is transforming industries across the globe, and the fundraising is no exception. OpenAI, Anthropic, META, Google, IBM - and hundreds of start-ups - are racing to develop the most useful AI tools. This is a gold rush for developers, and for investors. And in our business, from predictive analytics to donor prospecting, AI has the potential to revolutionize how nonprofits engage with supporters.

However, as we embrace AI, it’s crucial to recognize and establish clear boundary conditions around the use of AI-powered fundraising "bots."

As thought leaders in the nonprofit sector, all of us (along with organizations like CASE and AFP have a responsibility to ensure that AI is used ethically and responsibly, and while the developers of autonomous AI solicitation and engagement “bots” will shout from the rooftops about their safety, these tools should NEVER be used to solicit donations or interact with donors in a way that mimics human engagement.

While this might seem like a time-saving innovation, it introduces significant ethical and legal risks.

Here’s why CASE and AFP should consider adopting ethics rules prohibiting AI fundraising bots, specifically around the issues of fraud, misrepresentation, and the potential violation of KYC (Know Your Customer) and AML (Anti-Money Laundering) statutes.

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