Predictive analytics and artificial intelligence offer great promise for today’s fundraisers. But like any emerging technology, our adoption has to be deliberate and mission-focused. If you want to move beyond the buzzwords and truly enhance your relationship with donors through data, here are three key insights I’ve gained from working alongside JGA clients.
Three Fundraising Predictive Analytics and AI Pitfalls to Avoid
- It’s about more than wealth ratings. Today’s donor “screening” can consider everything from liquidity and cause affinity to likelihood to respond and social connections. The days of relying solely on real estate as a dominant data point are over —and for good reason. The most powerful wealth screening tools now analyze past giving behaviors, helping you focus on donors’ real passions. With increasing access to donor history across the philanthropic landscape, it’s crucial to listen to the data. People who give tend to continue giving, especially to causes that demonstrate impact.
- Engagement is the key to identifying the best donor prospects. Once you’ve identified prospects with significant capacity who are philanthropic and aligned with your mission, the next step is focusing on those who are the most engaged. This requires analyzing your data strategically to pinpoint donors signaling they are “ready” to give. What engagement looks like will be unique to your organization, but prioritizing engaged donors accomplishes two key objectives: maximizing your limited time and genuinely listening to those who find joy in giving.
- Data doesn’t replace human relationships, it strengthens them. There is no “next big thing” in fundraising beyond authentic human relationships. If a technology pitch suggests replacing real human engagement, be cautious. Philanthropy is deeply personal and driven by passion. The best AI predictive analytics tools should empower you to personalize outreach, accelerate confidence in your strategies, and optimize your time. When applied ethically and strategically, these tools can enhance—not replace—the human connections at the heart of fundraising.
Predictive Analytics and AI Can Transform Your Fundraising
The question for today’s fundraisers isn’t whether to invest in data—it’s a requirement for success in today’s environment where basically everything we do is personalized based on our demonstrated preferences—yes, I’m talking about Netflix and Spotify. The real question is this: How can you harness this technology smartly, and in a way that truly elevates your team’s success? Think about the three pitfalls above as you make decisions, and most importantly, ask yourself, “How does this strategy increase the joy of giving?”
If you’re ready to leverage data to accelerate your success while enhancing the donor experience, connect with us. At JGA, we’ve partnered with hundreds of nonprofits to do just that, and we’re ready to partner with you too.