In this episode of the First Day Podcast, host Bill Stanczykiewicz, Ed.D., is joined by Cherian Koshy, CFRE, CAP®, Vice President at Kindsight and co-author of the study Donor Perceptions of AI. The conversation discusses how donors perceive the growing use of artificial intelligence (AI) in the nonprofit sector. This independently funded study surveyed over 1,000 U.S. donors who contributed between $20 and $200,000 over the past year, offering a rare look into their comfort level with AI and its potential impact on fundraising practices.

Cherian explains that while many nonprofits remain uncertain about AI’s various use cases, donors are surprisingly well-informed, likely due to media coverage. The study revealed five key themes, with privacy and data security concerns (noted by 60% of respondents) among the top issues. However, an even more significant worry for donors was the loss of human connection in philanthropy. Despite these concerns, most respondents were optimistic about AI’s potential to enhance a nonprofit’s effectiveness and remained open to its responsible use.

Interestingly, AI isn’t a major factor in most donors’ giving decisions—either positively or negatively. Less than 10% said they would be more inclined to donate because of AI, while the majority indicated it wouldn’t affect their giving at all. Cherian shares practical applications for AI in improving internal processes, such as using chatbots to answer donor questions instantly. This efficiency can free up significant time for staff, allowing them to focus more on personal donor interactions. Bill highlights an example where AI saved one fundraiser 8–16 hours per week, resulting in several additional donor meetings.

The episode wraps up with a focus on transparency and trust-building. Cherian stresses the importance of communicating openly with donors about how AI is being used and involving community members in discussions about technology and ethics. He cites the example of the Furniture Bank of Toronto, which developed a responsible AI manifesto to foster trust with stakeholders. With AI playing an increasingly central role in nonprofit operations, the conversation encourages organizations to balance innovation with authentic relationship-building while continuing to prioritize donor engagement and stewardship.