New Insights Reveal How Nonprofits Leverage Technology for Fundraising Success

In May 2025, the Blackbaud Institute, a prominent research facility under Blackbaud (NASDAQ: BLKB), released a groundbreaking report titled "The Status of Fundraising in the AI Era." This publication draws upon data collected from a nationwide survey involving nonprofit professionals. The findings present a compelling narrative illustrating the robust correlation between the effective use of technology in social impact organizations and the resulting growth in fundraising revenues.

With 72% of respondents indicating that they either achieved or surpassed their fundraising targets in the previous year, the report underscores that nonprofits are facing heightened expectations while operating with limited resources. The comprehensive nature of the research delves deeply into the current landscape of technology adoption, the transformative potential of artificial intelligence (AI), and how top-tier organizations embrace technology to streamline fundraising efforts and enhance overall performance.

As Carrie Cobb, Blackbaud's Chief Data and AI Officer, poignantly remarks, "We're at a pivotal moment where intentional technology use can create transformative change across the sector." Cobb emphasizes the immense opportunity for organizations to drive significant outcomes by investing in AI, cultivating internal expertise, and establishing ethical frameworks to guide its implementation. The report indicates that those adopting these strategies are likely to experience remarkable benefits.

Key Findings

Digital Maturity and Revenue Growth

The report highlights a clear connection between an organization's digital maturity and its fundraising success. Organizations exhibiting a higher degree of technology integration consistently report revenue growth and are less prone to experiencing revenue downturns compared to their counterparts with limited tech utilization. This finding elucidates the importance of embracing technological advancements in enhancing fundraising capacities.

AI Adoption in Nonprofits

The integration of AI within the nonprofit sector appears promising, with 82% of organizations reporting the use of AI tools, predominantly leveraging free generative platforms for content creation. Additionally, AI is utilized for functions such as prospecting, wealth screening, and A/B testing. The survey indicates a disparity in attitudes toward AI use based on the size and technological maturity of the organization, yet a significant majority anticipate AI's pervasiveness will lead to increased efficiency in their operations.

Need for AI Policies

Despite the growing tendency to employ AI, the necessity for organizational policies surrounding its use is evident. Alarmingly, only 14% of nonprofits have established AI-specific policies. This gap indicates a pressing need for standardized guidelines to govern AI utilization within the sector.

Training and System Integration

Effective training and comprehensive system integration emerge as vital components in enhancing technology utilization. Approximately 60% of fundraisers articulated that improved training could significantly elevate their technology engagement, while 56% highlighted the importance of better system integration to facilitate collaboration and enhance operational effectiveness.

Resource Allocation

Resource allocation continues to play a pivotal role in determining fundraising results. Among organizations that successfully grew their revenue, 44% attributed their achievements to adequate resourcing—second only to receiving exceptional financial gifts. Conversely, over half (51%) of those reporting revenue declines cited insufficient resources as their primary challenge, underscoring the critical importance of strategic financial planning.

The Blackbaud Institute’s findings reveal invaluable insights for nonprofits striving to optimize their fundraising techniques amidst evolving market conditions and increasing demands for accountability. For further details and to explore the complete findings of this insightful report, visit the Blackbaud Institute’s website, where all resources are freely accessible, reflecting Blackbaud's commitment to fostering social impact through data-informed insights.

About the Blackbaud Institute

The Blackbaud Institute is dedicated to pioneering research and facilitating dialogues among experts to empower the social impact community with actionable knowledge and insights. Drawing from one of the largest datasets in the sector, the Institute produces timely research studies that serve to enhance understanding and improve the essential operations of social impact entities.

About Blackbaud

As the industry leader in software dedicated to driving social impact, Blackbaud serves nonprofits, educational institutions, socially responsible companies, and individuals committed to making a difference. With an expansive platform ideated for accelerating fundraising impact, managing finances, fostering digital giving, and overseeing grantmaking, Blackbaud transforms how organizations operate, ensuring that their missions are realized effectively. With millions of active users globally and substantial funds raised through its solutions, Blackbaud is at the forefront of the social impact sector.