The landscape of charitable giving is changing. While the Baby Boomers, our traditional supporters, are gradually giving less, a new generation of passionate philanthropists is stepping up: the Millennials. As digital natives, Millennials are setting new standards for giving, prioritizing online platforms, social sharing, and transparency in impact. They expect a seamless, tech-friendly, personalized experience everywhere they interact – from shared transportation (e.g., Lyft, Uber), to where they buy their toiletries (e.g., Amazon), and where they stream their shows and movies (e.g., Netflix, Hulu). Their philanthropy is no exception. To truly connect with this generation, nonprofits must engage a powerful new ally: artificial intelligence (AI).

Millennials: The tech-savvy donors

Millennials are leading the charge in transforming philanthropy. Like past generations that enjoyed seeing the progress of a community fundraiser on large, hand-drawn thermometers displayed in lobbies, Millennials crave real-time data and transparency on their devices. They want to see their contributions' tangible impact immediately and actively seek out organizations that clearly and quickly communicate their goals and results. This generation gravitates toward online platforms that provide immediate feedback and allow them to track their donations, just like the old fundraising thermometers did before the digital age. Platforms like GoFundMe and DonorsChoose – both of which utilize some aspects of AI and machine learning to enhance their platform – are familiar territory as AI and tech integration are the norm in most aspects of their lives. This isn't just a trend. It's a paradigm shift that requires nonprofits to adapt and innovate by strategically and thoughtfully embracing technology to create a more engaging and transparent experience for Millennial donors.

AI: A personalized approach to philanthropy

AI is emerging as a game-changer in this new era of giving. Nonprofits can now analyze data from online and mobile donations. AI provides valuable insights, allowing fundraisers to better understand and connect with Millennial supporters. AI enables nonprofits to provide a tailor-made fundraising experience for each donor (a la the aforementioned Uber, Lyft, Amazon, and Netflix), suggesting donation amounts that align with their past giving or customizing their mobile experience based on their interests. This is the power of AI-driven personalization.

Building trust with transparency

Of course, proceeding thoughtfully and ethically is essential with any new technology. Transparency is vital when it comes to using AI in fundraising. Nonprofits must be upfront about collecting and using donor data, ensuring every interaction is respectful and secure. By prioritizing transparency, adhering to ethical data practices, and staying informed about the latest developments in AI, nonprofits demonstrate a commitment to respecting their supporters' privacy and using this technology responsibly. This approach is crucial for building and maintaining trust, which is essential to relationships with Millennial donors.

A future of connection and impact

AI isn't about replacing the human element in philanthropy but enhancing it. By leveraging this incredible tool, nonprofits can create a more engaging and meaningful experience for Millennial donors, empowering them to make a lasting impact on the causes they care about. As the technology further develops, AI will play an even more vital role in connecting passionate individuals with organizations that need their support. By embracing AI strategies now that prioritize personalization, transparency, and leveraging data insights, nonprofits can effectively engage Millennial donors, fostering long-term relationships built on trust and meaningful connections.

Lynn Schuette is a 2024 graduate of the Masters of Nonprofit Leadership and Management program at Arizona State University and is a member of the Nu Lambda Mu International Graduate Honor Society. She lives in the San Francisco Bay Area and is the Director of Quality and Strategic Initiatives for Community Overcoming Relationship Abuse (CORA) in San Mateo County, California. She is passionate about nonprofit work and how artificial intelligence (AI) can be used to engage donors and further a nonprofit’s mission.

Image by Lillian Finley

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