How nonprofits using AI can do more good

Nonprofit organizations don’t fit neatly into one category. They range from huge, international operations to community theater companies. However, purpose is one thing they all have in common. They’re mission-driven, working for the good of their communities and, sometimes, the world.

Generally speaking, most nonprofits are rich in passion but lacking in budget. Their need to do more with less makes them perfect candidates to reap the time-saving benefits of AI. However, new nonprofits research by ServiceNow and ThoughtLab revealed many are lagging in adopting AI and other digital transformation technologies.

Our research also found that a group of nonprofits using AI is far ahead in digital transformation. These Pacesetters provide an excellent model for how nonprofits can go from experimenting with AI to truly putting AI to work within their organizations.

Significant returns on digital investments

Pacesetters, which made up 20% of the 300 North American and European nonprofits we surveyed, are far ahead of the pack in key areas of digital transformation, including:

• The adoption of an end-to-end IT platform
• A push to digitize, automate, and scale workflows
• The embrace of AI to enhance performance

As a result of these efforts, 85% of Pacesetters report moderate or significant acceleration in time to value, compared to 67% of other nonprofits in our survey. Pacesetters also report significant gains in top-line growth, efficiency, cost reduction, innovation, and strategic impact (see Figure 1).

Figure 1: The impact of digital transformation on nonprofit organizations’ performance

The executives we interviewed reported additional benefits stemming from their digital transformation, from improved experiences to better decision-making.

“A comprehensive platform allows for centralized data collection and analysis,” said a senior executive from a Swiss humanitarian organization. “This enables us to gain deeper insights into our operations, customer behaviors, and market trends. With better data at our fingertips, we can make more informed decisions.”

A chief operating officer shared, “An end-to-end platform will provide us a seamless donor experience and personalized communication. This will help enhance donor engagement, retention, and revenue for fundraising.”

Crossing the AI divide

A full 89% of Pacesetters believe AI will dramatically change the ways nonprofit organizations operate. It should come as no surprise that they’ve been quick to adopt AI in their operations.

About two-thirds report being midway or advanced in using AI to improve their performance (see Figure 2). That’s 10 times higher than other nonprofits, most of which are in the planning or early implementation stages.

Figure 2: Digital transformation progress Pacesetters report today and predict in the next three years

That leaves about 80% of non-Pacesetters on the wrong side of a growing AI divide. The gap may ultimately impair their ability to compete for funds and volunteers with more efficient and productive AI-empowered nonprofits that can deliver more targeted outreach and experiences.

Nonprofits deserve the best

Imagine a world where all nonprofits were Pacesetters. How much more good could they do if they had access to the most modern AI technology and an end-to-end platform that allowed them to operate at the highest levels of efficiency?

At ServiceNow, we believe digital transformation plays a critical role in helping nonprofits do the most good for the most people. That’s why we created ServiceNow.org.

ServiceNow.org helps nonprofit operations flow seamlessly, which in turn maximizes impact and makes it easier to turn passion into results. We want every nonprofit mission—whether it’s measured in lives saved, environments protected, or children fed—to succeed and thrive in the new era of AI.

Gain more insights in our complimentary Nonprofit Digital Transformation Report.