The following article is sponsored by Hatch.

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As a self-proclaimed “philanthropy futurist” with over 15 years of experience building technology solutions for the nonprofit sector, I've witnessed firsthand the challenges fundraising teams face in connecting with donors, reaching their goals and accomplishing their missions. This experience has fueled my passion for integrating cutting-edge technology and philanthropy to empower organizations to achieve greater impact.

Fundraising has always been about altruistic people, heart and the stories that inspire us to act. Yet for too long, we've navigated this journey with limited visibility, relying on intuition and broad outreach. These elements are invaluable, but imagine pairing them with the precise data and the power of artificial intelligence (AI).

We're entering an era where connections are guided by intelligence, where prospect researchers and fundraisers are equipped with deep insights that illuminate the path to meaningful engagements.

A Miraculous Shift in Understanding

This new era is more than a technological shift; it's a transformative and miraculous leap in how we understand and engage with donor potential.

For nearly thirty years, “wealth screening” as we know it has been our primary tool for identifying best-fit donors. Black-box giving scores, paired with some real estate ownership, was meant to answer the big question of “Who has the capacity to give?” And it worked to some degree. It filtered some of the more affluent and influential donors to the surface, and for those organizations with uber large databases, it became a staple tool.

Today, we have access to the richest tapestry of publicly available data ever in history: lifestyle, skills, interests, career trajectories, social presence and engagements, as well as a broad array of real-time wealth and philanthropic signals. By weaving these threads together, we are now able to craft a more complete, human portrait of each potential donor. Imagine condensing 10 days of painstaking grunt work into 10 minutes. A miracle!

This isn't about reducing individuals to more data points and numbers; it's about understanding their narratives, their motivations — their "why."

Our questions can now evolve beyond “Who has the capacity to give?” to something far more strategic: “Who’s the right donor, for the right amount, supporting the right program, at precisely the right time?” We've always asked these questions, but now, we're getting answers — immediate answers. A miracle!

The Power of AI in Philanthropy

AI allows us to discern patterns and affinities that might elude the human eye. The new algorithms and large language models (LLM’s) available to nonprofits today can now detect and surface, in milliseconds, the critical insights needed for effective cultivation. Insights that would otherwise take a team of prospect researchers (or one-person shops) days, weeks or months to come upon. For instance, imagine identifying “affluent-social-media-influencers-who-golf-and-have-given-1-million-plus-to-organizations-with-similar programs” to invite to your golf tournament in seconds from your database. Another miracle! It helps us identify those whose values align with our missions, even if they haven't engaged with us before. Imagine recognizing a potential donor's passion for education not just through their giving history, but through their skills, interests, professional endeavors and social interactions.

This depth of understanding enables us to approach each individual with authenticity and relevance. If adopted properly, it can also turn our prospect researchers into the rock stars they truly are. Instead of spending hours on multiple wealth screening tools, social media platforms and Google, prospect researchers are now leveraging AI to swiftly create ask-ready dossiers of donors that scream with accuracy and relevance.

Transparency Builds Trust

In this data-driven approach, transparency is paramount. Donors deserve to know why they're being approached and how their contributions make an impact. That's why our AI tools must provide clear, understandable explanations for their insights. No black boxes — just honest, accessible information that empowers both fundraisers and donors.

Enhancing, Not Replacing, Human Connection

AI isn't here to replace the human touch; it's here to enhance it. By handling the heavy lifting of data gathering and analysis, AI frees fundraisers to do what they do best: build relationships, tell compelling stories and inspire action.

I know some of you reading this are probably still a bit skeptical about what I’m saying. Can AI really identify, surface and explain to me, in plain terms, why a person might be a good fit for my cause? Or how much should I ask them for? Or what program or mission pillar will they be most excited about?

The answer is yes — if you have the proper data. If your organization, hasn’t been gathering basic donor contact information, then the algorithms will have a hard time discerning between your John Smith and the other 45,000 John Smiths alive today. But if your organization has done the fundamentals of collecting and managing your data somewhat properly, you’re in!

Embracing the Future

As we stand at the intersection of tradition and innovation, it's clear that the future of fundraising lies in embracing both. By integrating the heart of philanthropy with AI thoughtfully and ethically, we can deepen our connections with donors, amplify our impact and usher in a new age of generosity.

At Hatch, we're committed to leading this transformation — providing tools that empower nonprofits to connect more deeply, act more strategically and inspire more profoundly.