Why Using AI in Fundraising Communication Might Backfire — and What to Do About It

A new academic study published in the Journal of Business Ethics sheds light on an emerging challenge in nonprofit fundraising: when charities use or signal the use of artificial intelligence in donor communications, it can unintentionally reduce donor engagement.

This finding matters because many organizations are exploring AI for tasks like writing email appeals, generating digital ads, and personalizing outreach. The promise of efficiency and reach is compelling — but the research suggests that how AI is presented to potential donors matters more than many practitioners realize.

The authors conducted a series of experiments — including real online ads and controlled lab studies — to test how donors respond when charities clearly signal that they are using AI tools as part of their outreach.

There were two key conditions tested:

• Organizations using AI without special framing (simply stating that AI was used).

• Organizations using AI but framing it around meaningful, mission-centered purposes (e.g., “We used AI to help our team focus more on mission impact”).

Across conditions and study formats — including tens of thousands of impressions on real Facebook ads — the researchers consistently found that donor engagement dropped when AI use was made salient without thoughtful context.

The study identified the psychological mechanism behind the behavior: donors infer organizational motives from how technology is described.

When AI use was highlighted without clear mission context, donors tended to assume the nonprofit was driven by efficiency, cost-cutting, or convenience — perceptions tied to extrinsic motivation. In other words, donors inferred that the charity’s priorities might be operational efficiency rather than focus on the underlying social problem.

This inference had two effects:

• Lower click-through rates and willingness to donate.

• Reduced perception of authenticity and intrinsic purpose.

The result was a measurable dip in donor engagement.

This research is a cautionary evidence base rather than a blanket rejection of AI. The core finding isn’t that AI itself is bad — it’s that how organizations communicate about AI matters deeply.

Here’s how fundraisers and communicators should interpret the findings:

1. Donors want to see mission first, not machinery

Nonprofit supporters are motivated by purpose-driven narratives. When a communication highlights the tool (AI) rather than the problem and impact, it invites donors to judge the organization through an operational lens, not a mission lens.

2. Framing AI use around mission preserves donor motivation

The study found that when nonprofits describe AI usage in a way that emphasizes mission enhancement — for example, “AI helps our team focus its expertise on your community’s needs” — the negative effects on engagement are significantly reduced.

In other words, it’s not AI per se that causes concern; it’s the implied motive.

3. Transparency matters — but so does emphasis

Nonprofits shouldn’t hide that they use modern tools. Transparency remains important. However, the primary narrative should remain about the problem being solved and the meaning of donor support, not the efficiency gains of internal processes.

For any nonprofit considering AI in fundraising workflows, here are practical steps aligned with the research:

• Review how AI is referenced in public materials.
Scan email templates, social copy, landing page content, and automation disclosures. Remove or reframe mentions of AI that foreground efficiency.

• Anchor all technology descriptions in mission impact.
Whenever a tool is described, tie it explicitly to how it allows the organization to focus more on human connection, program quality, or frontline service — not cost savings.

• Test language with real donor segments.
Small A/B tests with different framings (AI as a tool for efficiency vs. AI as a tool for mission fulfillment) can help validate what resonates with your audience.

• Train fundraising teams and agencies.
Ensure that development staff and external partners understand that donor psychology responds first to perceived motives, not operational innovation.

This research points to a fundamental truth in nonprofit communications: donors care as much about why you are doing something as what you are doing. In an era where technology can distance organizations from personal relationships, nonprofits must be deliberate about signaling purpose, impact, and authenticity.

AI can be a powerful ally in fundraising — but only if it is introduced in a way that reinforces donors’ intrinsic motivations to give, not undermines them.