Charities and voluntary sector organisations that have used artificial intelligence in their work are more likely to have increased their income over the past year than those that did not, new research has found.

The Status of UK Fundraising: 2024 Benchmark Report, published today by voluntary sector software provider Blackbaud, surveyed almost 850 professionals working in the voluntary sector in April about their fundraising performance, income changes and their use of AI.

Of the organisations using AI, 42 per cent said their income had increased over the past year, compared with 31 per cent of those not using it. 

The research found that 57 per cent of participants were using AI, with 70 per cent of those respondents saying their organisation used AI to develop draft copy. 

A further 44 per cent said they used it to create social media content, while 10 per cent said they were using predictive AI.

But just 20 per cent of those already using AI said they were adequately resourced to explore it and only 12 per cent of AI users said this was a priority for their organisation. 

Out of all respondents, 5 per cent said they had an AI policy in place, while 15 per cent said they were working on one.

Misinformation was the biggest concern about AI, with 78 per cent of respondents saying this was a concern for them. 

Data security was a concern for 62 per cent of respondents, reputational risk worried 59 per cent and bias was also a concern for 51 per cent of respondents. Researchers found that 27 per cent of respondents were concerned about the impact of AI on job security.

The report listed some fundraising challenges and asked organisations whether they agreed this was an issue for them. 

The most popular answer, chosen by 79 per cent of respondents, was “the economic climate leading to fewer donations”. 

It also found that 47 per cent said they were experiencing challenges related to recruitment and retention, 45 per cent were experiencing challenges in communicating their cause in relevant ways and 41 per cent were experiencing challenges related to rising fundraising costs.

When asked about what would bring the most value to their organisations’ fundraising strategies, 60 per cent said improved data management and 52 per cent said working with partners to reach new audiences.

A further 43 per cent said multichannel communications would benefit their organisation and the same percentage said that technology training would benefit them.

Phillip Hunt, senior manager, marketing, at Blackbaud, said: “The nonprofit sector is in a constant state of change with economic and political uncertainties.

“Despite this, we are seeing success in more intentional strategies that focus on maximising the potential of technology and driving sustainable growth through income stream diversification. 

“AI, too, is shaping the nonprofit sector. These modern innovations propose exciting new opportunities, but also underline the need for accelerated policymaking to ensure responsible and ethical use of AI.”