The nonprofit sector has always operated under financial pressure. Organizations focused on service, education and advocacy typically rely on a patchwork of individual donations, corporate support and public funding, all of which can fluctuate in response to economic and political conditions. Today, that fluctuation is becoming less cyclical and more structural. Shifts in tax policy and delays in government grants have disrupted traditional funding patterns, while donor behavior is becoming increasingly unpredictable. Instead of steady giving cycles and institutional reliability, many nonprofits now face a landscape characterized by disruption, fragmentation and volatility.
In response, more nonprofits are re-evaluating their engagement strategies. It is no longer just about reaching new people. It is about building deeper relationships with those already involved. Increasingly, technology is shaping this shift.
What started as a tool for outreach and automation is now seen as a long-term engagement strategy. The most forward-thinking organizations are turning to digital platforms, behaviorally informed systems and artificial intelligence to create supporter experiences that are not only personalized but also lasting. This shift in perspective, viewing tech as a retention mechanism rather than just a promotional one, reflects the sector’s deeper understanding that resilience depends less on visibility and more on ongoing connection.
The urgency of this change is rooted in data. According to Giving USA, overall charitable giving in the United States increased by 3.3% in 2024 when adjusted for inflation, a modest recovery after two years of inflation-adjusted declines. But that top-line growth tells only part of the story. Beneath it, the sector faces serious retention challenges. The Fundraising Effectiveness Project’s Q4 2024 Report found that only 19.4% of new donors from 2023 gave again in 2024. Even repeat donor retention decreased by 3%. These aren’t just figures; they are signals that the sector’s traditional pipelines for sustained giving are weakening.
The old model assumed that a donor’s first gift could be cultivated into a long-term relationship through incremental asks and increasingly tailored communications. But today, attention is short, digital demands are high and institutional trust is uneven. A one-time gift no longer guarantees interest in future campaigns. A volunteer who participates once may not return if the only follow-up they receive is a prompt to sign up again. The common thread is emotional investment, and too many systems fail to sustain it.
This is where technology, including AI, can make a measurable difference, but only if used intentionally. Donor and volunteer retention are, at their core, behavioral challenges. People tend to stay involved when they feel recognized, when their contributions align with their values and when they can see progress toward a mission of particular interest to them.
AI can help support that experience. It can prompt reflection, guide supporters through meaningful next steps, highlight moments of impact and adapt to engagement patterns that reflect how people actually want to participate. By reinforcing identity and purpose, these nudges go beyond transactional asks.
For example, a volunteer’s first shift should not end with a generic ‘thank you.’ A follow-up that encourages reflection on how the experience felt, not just what was accomplished, can help build an emotional connection. Similarly, when donors receive stories tailored to their interests or long-term goals, they are more likely to give again. What matters most is the continuity of these interactions, and AI is well-suited to maintain that continuity across diverse supporter journeys.
Volunteers represent a major opportunity within this framework. Time and money are often treated as separate strategies in nonprofit work, but they are deeply linked. Volunteers who feel connected to an organization are far more likely to become donors. This transition is not automatic, but it can be encouraged through tools that track participation, recognize individual growth and invite next steps based on demonstrated values. Rather than focusing solely on conversion for its own sake, the aim is to cultivate deeper, more flexible relationships that are grounded in a shared purpose.
Of course, the power of AI and related tools comes with responsibility. Nonprofits operate in spaces where privacy, trust and transparency are paramount. Algorithms must be designed to support autonomy, not manipulate behavior. Data should be collected and used only with informed consent and clear benefits to the participant over which the participant retains control. The promise of technology is undermined the moment it prioritizes efficiency over ethics.
When implemented effectively, tech-enabled engagement can help nonprofits stabilize during uncertain times. It can foster habits of participation, build loyalty and encourage supporters to see themselves as part of something bigger than a single donation or service shift. It can also help organizations listen, adapting their outreach and programs based on actual patterns rather than assumptions. The challenge isn’t scale, but depth: improving the experience of those already committed.
As funding becomes less predictable and traditional channels less dependable, resilience will come from the relationships organizations are able to sustain. Those relationships will depend on whether nonprofits use technology intentionally, not just to connect with supporters, but to build trust over time. That is the kind of resilience the sector needs to prioritize.
