Page 24 - 2024 Nonprofit Industry Trends

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AI FACTS

The global AI market is valued at over $136 billion

EILEEN MINOGUE JOSHUA PESKAY
116.9 million EXECUTIVE DIRECTOR 3CPO

BOOK FAIRIES ROUNDTABLE TECHNOLOGY

48% In the upcoming year, I believe several significant challenges are expected for nonprofits. In 2024, the nonprofit sector faces a critical juncture where embracing technological advancements like
AI, addressing mental health proactively, and navigating a complex regulatory landscape will be key
Heightened global turmoil compounded by rising interest rates in an election year poses
formidable hurdles in fundraising efforts. Individuals experiencing increased stress, determinants of their resilience and effectiveness.
corporations juggling conflicting demands, and foundations seeking demonstrable • Fundraising and Budget Challenges: Economic uncertainties, particularly in an election year, will
impact are adding complexities. In addition, social media saturation and electronic likely tighten donor budgets, affecting fundraising. Nonprofits will need to innovate in their fundraising
83% of companies claims that AI is a top priority in their business plans communication create distractions competing for attention, potentially causing mission • strategies, finding effective means of reaching their audience and engaging their attention.
messages to be missed amidst the noise.
Escalating Mental Health Issues: The contentious political climate, coupled with the remote/hybrid/
To address these, building robust relationships with donors and stakeholders can be in-person dynamics continuing to change, and countless other factors, have exacerbated already
significant mental health challenges. Nonprofits that fail to recognize the mental well-being of their
a cornerstone for sustainability. Nonprofits must prioritize relationship-building for
28 % funding, engaging broader audiences, and crafting authentic, impactful messages to workforce as a priority will suffer high burnout and turnover, losing valued personnel to organizations
28%
with healthier workplace cultures. Superficial mental health programs such “Mindful Monday” are
navigate these challenges. I truly believe authenticity and passion for the mission will
band-aids on a bullet-wound. To meet this challenge, nonprofits will need to establish comprehensive
say they use it bring together the right staff, volunteers, and donors. and evidence-based mental health initiatives. This could involve proactive measures such as regular
say they use it
mental health days, more flexible work schedules that better ensure work-life balance, employee
In addition, one of the prominent trends for nonprofits in 2024 is the continued integration support groups, training for managers to recognize and address mental health issues, partnerships
of Artificial Intelligence (AI). Understanding and leveraging AI tools like ChatGPT can with mental health organizations for expert guidance, and creating a culture where mental health
discussions are normalized and encouraged.
25% of companies have adopted AI to address labor shortages significantly benefit nonprofits in crafting various materials, including compelling appeals, • AI Revolution: AI’s growing influence presents both challenges and unprecedented opportunities.
engaging newsletters, developing impactful blogs, or managing social media content.
These tools offer a time-saving advantage and are accessible to nonprofits of various Nonprofits that effectively integrate AI into their operations, from donor engagement to strategy
sizes. Moreover, they can assist in parsing out targeted segments, leading to a stronger to operations, could leapfrog in efficiency and impact. However, this requires upfront AND ongoing
return on investments for outreach efforts. investment in technology and training. Nonprofits must navigate AI adoption responsibly, considering
By 2030, 30% Of Work Hours across the US economy could be With AI technology constantly changing, it’s imperative for those in leadership roles to help ethical implications and potential biases in AI systems. Establishing AI policies that encompass ethics,
transparency, and safety is essential. This might involve collaborating with tech experts and adopting
automated with AI their staff, board members, and donors learn how AI can help in bringing awareness and best practices for responsible AI usage. For AI adoption, nonprofits should focus not only on the
technology itself but also on how it can enhance their mission. This could mean using AI for predictive
support to the mission. While AI is a powerful tool, it must be comprehensively understood
and used responsibly to achieve maximum return on investment. It’s important to note analytics in fundraising, optimizing service delivery, or improving operational efficiency.
(not jobs) can be automated using
( not jobs ) can be automated using that the AI trend comes with its own set of challenges, particularly related to privacy • Data Governance and Privacy: With increasing regulations like GDPR, NY SHIELD, and CCPA, nonprofits
must establish meaningful data governance, ensuring compliance and secure handling of sensitive
concerns and ethical considerations. Nonprofit organizations must navigate these aspects
with caution as they institute these new technologies. information, or face increasing risk of regulatory penalties and loss of trust. This includes establishing
clear data policies, conducting regular audits, and training staff on data privacy best practices.