Nonprofit leaders share AI concerns
Artificial intelligence (AI) seems to be everywhere these days, including in nonprofits. A recent survey by Stanford University’s Institute for Human-Centered Artificial Intelligence and Project Evident explores the current use of, interest in and opportunity for AI in the social and education sectors. The survey’s results show that AI already has a considerable presence there; nearly half of funders and nonprofit respondents said their organizations use some type of AI. And three out of four funders and nonprofits believe their organizations would benefit from using AI more.
The most common barrier to adoption is bias in AI systems, followed by challenges in envisioning how nonprofits can use the technology and a lack of internal expertise. In addition, nonprofits also are concerned about the cost.
Cryptocurrency’s popularity only seems to grow in certain segments of the population. Accepting crypto donations could present an opportunity for your nonprofit organization to boost revenue while also helping you to connect with new groups of donors. Accepting crypto isn’t without risk, though.
Grants from donor-advised funds (DAFs) to charitable organizations totaled $52 billion in 2022 and contributions to DAFs reached $85 billion, an all-time high, according to the 2023 Donor-Advised Fund Report from the National Philanthropic Trust (NPT). Data for the NPT’s 2024 report is currently being collected.
The global cost of cybercrime is expected to soar in coming years, and nonprofits are far from immune to the threat. The rising role of technology, especially in an age of increased remote work, leaves organizations of all kinds vulnerable to data-related crime.
Nonprofit evaluator Charity Navigator — which has rated nearly 210,000 organizations as of Fall 2023 — has made significant changes to how it calculates its scores. Its Accountability & Finance scores now are calculated based on defined nonprofit characteristics. Larger, donor-funded charities will undergo an in-depth evaluation, while organizations that are smaller or not funded by donors will be assessed with a more-focused set of metrics. Charity Navigator also is removing metrics such as administrative expense ratios, fundraising ratios and program expense growth metrics.
Cost allocation can be a cumbersome task for nonprofits, especially organizations with many activities. However, the process is critical for multiple reasons, and it’s worth reviewing your cost allocation practices regularly to ensure they’re working as intended.
Let’s face it: Most nonprofits are founded on a passionate belief in service. This doesn’t always include a passion for numbers. To fill this gap in financial expertise, nonprofits often hire chief financial officers (CFOs). But do all nonprofits — including small organizations — need one?
President Biden signed the Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act into law in late 2022, but much of the wide-reaching retirement legislation is being phased in over time. There are some significant changes in 2024 and 2025 that may help nonprofit employers recruit and retain employees. Here’s what you need to know.
