Artificial Intelligence (AI) is rapidly transforming how organisations operate. For Charities and Non-Profit Organisations, it offers a significant opportunity to improve efficiency, enhance fundraising efforts and better deliver on charitable objectives, all of which are key areas where team and resources are constrained.

However, achieving these benefits requires careful consideration and oversight. Strong governance and clear policies surrounding the use of AI within a charity are essential to ensuring that it is used responsibly and in accordance with applicable regulation; be that in generating a dedicated AI policy, or in implementing AI referencing into existing policies. The Board of Trustees retain ultimate responsibility for this, even when day-to-day use and decision-making is delegated to management.

Where can AI add value?

Fundraising is one of the most immediate areas where AI can deliver tangible benefits for a Charity. As competition for funding intensifies, Charities need to maximise the return on every £1 spent on fundraising efforts. AI tools can support this by:

• Improving the quality and consistency of funding applications;
• Enhancing interaction from donor communications and fundraising campaigns; and
• Reducing the time taken in producing appeal materials and grant proposals

When used effectively AI can hope to increase both the efficiency and effectiveness of fundraising efforts, which may free up precious team time to continue delivering on the Entity’s charitable objectives.

Key risks and considerations

While there are advantages, AI-generated output should not be used without appropriate review. Specifically:

• Messaging must be checked to ensure it does not inadvertently restrict income for a specific purpose, unless this is intended;
• Material must be aligned with the Charity’s objects and Fundraising policy; and
• Professional Judgement and understanding should be applied.

Ultimately, AI should support and not replace decision-making.

Regulatory Expectations The Fundraising Regulator has issued their first official Guidance around the use of AI in fundraising. This follows the revised Code of Fundraising Practice.

The guidance provides clear insights and recommendations which Charity Trustees must be aware of when setting their own fundraising strategies.

This guidance and regulation applies to:

• Internal fundraising teams;
• Third-party fundraisers; and
• Volunteers
  • This is particularly important given SORP changes which require greater disclosure around the use of Volunteers within Trustee’s Reports.

Data protection and governance

AI, and indeed the corresponding guidance issued are all drafted in the context of GDPR and wider data retention obligations. In considering the use of AI, Charities should:

• Understand how AI tools process and store data;
• Restrict the uploading of confidential information to platforms; and
• Ensure that sensitive data, particularly relating to vulnerable people and children, is properly protected and safeguarded.

Clear policies should ensure that such risks are sufficiently mitigated in everyday use.

Looking ahead

AI presents a genuine opportunity for charities and social entities to strengthen fundraising performance and ultimately deliver greater charitable impact to their stakeholders, where robust and well-designed policies are adhered to.

Conversely, Charities who do not engage with AI may leave themselves at risk of losing competitive edge, something which cannot be afforded given the increasingly demanding funding landscape.

How bk plus can help

If your charity is exploring the use of AI, or you would like to review whether your existing policies and governance arrangements are fit for purpose, our Charities and Social Enterprise team can help. We work with trustees and management teams to put practical, proportionate frameworks in place, so you can benefit from AI while staying aligned with regulatory expectations.

To discuss how we can support your organisation, please get in touch with your usual bk plus contact or visit our website to speak to our team.