Startup
best practices for using AI to earn lasting donor trust
Dan Lammot, Co-founder & CEO
5 min read
AI is already part of everyday work at many for-purpose organizations, but donor confidence in how organizations use these tools hasn't kept the same pace. In Candid's 2026 trust research, more people said an organization's AI use would make them less likely to trust it (37%) than more likely (22%).
However, closing that gap doesn't mean stepping back from AI. Most donor unease stems from uncertainty about how AI impacts your work. As long as you communicate how you use this technology clearly, you don’t have to walk back tools that give your organization more capacity to achieve its mission. In this guide, we’ll explore how to do just that and give more donors a reason to stay.
understand why some donors mistrust AI
To properly address donor concerns, you first need to break down why people are wary of AI use, both generally and in the for-purpose sector. The AI landscape is evolving rapidly, but some concerns have persisted, such as:
Ungoverned use: Donors want to know if AI shapes the messages they receive and the decisions that affect them. Blackbaud Institute research found that 76% of donors say it's important to understand when and how the organizations they give to use AI, but only 26% of organizations say they disclose it.
Data misuse: Since AI tools are trained on user data, there is a risk that, if not used properly, they could compromise personal information. Donors share personal and financial information with your nonprofit, so some are concerned that it could be leaked.
Lost human connection: The for-purpose world is built on authentic human relationships, so outsourcing work to AI can turn some donors off from your cause.
Notice that none of these concerns are about whether AI is useful. Each one is about whether the organization is honest and careful, so clear communication is essential to secure donor buy-in (more on that later).
set clear governance and data standards
With important operational processes and donor relationships on the line, AI governance is an ongoing responsibility for your entire organization. When executives and the board own the policy and invest in organizational awareness and adoption, staff can take a trust-based approach to responsibly handling data.
A clear AI policy defines a few essentials:
Approved tools to work from
Off-limits data and tools
Donor data consent and preferences
Human review standards and accountability
How successfully you implement AI also depends on your data. AI can only be as trustworthy as the records it draws from. Inconsistently formatted or maintained data leads to incorrect donor contact information, unreasonable gift amounts, and mistimed asks. Donors notice those errors long before they notice the technology.
Fundraising leaders and technical staff need to build this foundation together. Fundraisers know which details matter to donors, such as which fund a gift supports or how a donor prefers to be recognized. Technical teams know how to capture those details and keep them consistent across systems. When both groups agree on what fundraising teams need from organizational data before adding AI, the tools can produce more accurate results.
A simple way to start is by making an AI inventory. List every AI tool your team already uses, who uses it, and what donor data it touches. Most leadership teams find at least one tool they didn’t know about, and those discoveries inform their unique governance and data management approach.
prioritize AI activity disclosure
Your policy only builds trust when donors see it in action. Donors pay close attention to whether a person is involved in actually writing what they receive. In Neon One's survey of donors' AI views, 71.6% said it's moderately or very important that a person is involved in writing the communications they receive.
Disclosing the specifics of your AI use can bridge that gap. Be transparent about:
Where you use AI: Name the tasks and workflows that AI impacts, such as drafting thank-you letters or analyzing giving patterns.
Who reviews AI-enabled work: Explain that a staff member checks every donor-facing message before it goes out, and that humans make all final decisions about outreach.
When donors are talking to AI: If your website has a chatbot, label it as automated and give donors an easy way to reach a real human staff member.
Disclosure doesn’t need to be complicated. For most organizations, a short, plain statement on the website, privacy policy, or donation pages is enough. For example, “Our team uses AI to help draft some communications, but a person reviews every message before it’s sent.”
If you put donor data into an AI tool, such as one that predicts which donors might give again, be candid with donors about which information you use. Give them a simple way to opt out of AI data processing, such as by including a checkbox on your donation form, and honor that choice.
build donor trust with AI by strengthening stewardship
Once your policy and review process are in place, your team can use AI can actively earn trust. Donors trust organizations that thank them quickly, report clearly on results, and stay in touch - and AI can help with all three.
Here is how well-governed AI can strengthen stewardship:
Faster, more accurate acknowledgments: AI can draft a thank-you letter as soon as a gift is recorded, with the correct name, amount, and fund. A staff member reviews and sends it, so donors hear back quickly and accurately.
Clearer impact reporting: AI can pull results from the program a donor funded and turn them into reports and stories faster. Then, your team can verify every number before it goes out and contextualize the numbers with real impact.
Attrition prevention: Using AI for fundraising can help you predict a potential lapse when a donor's engagement drops, so a person can reach out before the donor leaves.
More time for real conversations: The hours your team saves on data entry and first drafts go back into listening through calls, visits, and human engagement.
Leveraging these benefits depends on how you approach the previous practices. Clean data keeps acknowledgments accurate, human review keeps outreach honest, and disclosure means donors already know AI is involved when they see the results.
To maintain donor trust, update your AI policy as your AI use changes. Review the policy at least once a year, and update it whenever you add a new AI tool. Ask donors how they feel before and after a change they'll notice. A short survey or a few phone calls is enough.
To start, finish your AI inventory, then tell donors how you use AI in one area. Each clear disclosure gives donors another reason to trust you.



