The AI Advantage: How AI is Shaping and Securing Philanthropy

Written by IPA Sponsor: LEAP Managed IT

Artificial intelligence (AI) is revolutionizing industries, and philanthropic organizations are no exception. AI enhances efficiency, optimizes resources, and improves engagement with donors and beneficiaries. However, with these advantages come security risks that must be managed to protect sensitive data and maintain trust. This article serves as a primer for philanthropic leaders navigating AI adoption within their organizations.
A 2024 study by NonProfitHR found that over half of surveyed organizations use generative AI for tasks such as meeting transcription, job description drafting, and social media management. AI also plays a crucial role in donor analysis and prediction, identifying potential donors with high giving potential by analyzing past donations and campaign interactions. 

How AI Benefits Philanthropic Organizations

• Automating Administrative Tasks - AI-powered virtual assistants handle tasks like writing job descriptions, scheduling meetings, and managing emails.
• Enhancing Donor Engagement - AI analyzes donor behavior, allowing organizations to personalize interactions and refine marketing campaigns.
• Streamlining Volunteer Management - AI scheduling tools match volunteers with tasks based on their skills and availability, improving efficiency and participation.
• Measuring Program Impact - AI-driven data analysis provides real-time insights into program performance, helping organizations refine strategies and demonstrate effectiveness to stakeholders.

Despite AI's growing adoption, many nonprofits lack proper protections, controls, and policies to secure operations and safeguard donor and partner data. The risks are significant in an AI-driven world. Deepfake phishing emails pose a growing threat, as cybercriminals use AI-generated deepfake technology to create highly convincing fraudulent messages. These impersonations of executives, board members, or trusted partners can deceive employees or donors into transferring funds or revealing confidential information.

This is not a hypothetical concern. In 2019, an energy firm fell victim to a deepfake voice phishing attack where cybercriminals mimicked the CEO’s voice using AI-generated audio, tricking an employee into wiring $243,000 to the attackers. (Source) Since then, deepfake technology has only improved, making these scams more sophisticated and dangerous.

“As technology continues to evolve, so do cybercriminals' tactics. Attackers are leveraging AI to craft highly convincing voice or video messages and emails to enable fraud schemes against individuals and businesses alike,” said FBI Special Agent in Charge Robert Tripp. “These sophisticated tactics can result in devastating financial losses, reputational damage, and compromise of sensitive data.” 

Ensuring AI Security in Philanthropy

The NIST Cybersecurity Framework is a strong starting point for AI security. This framework provides guidelines for managing cybersecurity risks, enabling organizations to build a structured defense against threats. 

• Implement Strong Data Protection Measures - Encrypt data, enforce access controls, and use secure storage to safeguard AI-generated and donor-related information. Implement multi-factor authentication (MFA) and AI-driven email filtering tools to detect anomalies and fraudulent messages.
• Use Trusted AI Tools and Vendors - Selecting reputable AI providers with strong security measures reduces the risk of data leaks and misuse.
• Educate Staff and Volunteers - Training on AI security best practices helps prevent data breaches and strengthens cybersecurity awareness. Employees should be trained to recognize suspicious emails, particularly those involving financial transactions. A verification process should require secondary confirmations, such as phone calls, for critical requests.
• Establish AI Governance Policies - Organizations must define clear policies on AI use, data handling, and security protocols. Policies should address what type of donor data can be entered into AI systems and whether sensitive donor information should be restricted.

If you’re a philanthropic leader looking to raise your organization’s cyber defenses, the NIST Cybersecurity Framework is an excellent place to start. Implementing its principles doesn’t require a large budget or an in-house IT team.  

At LEAP Managed IT, we specialize in helping nonprofits navigate the complexities of cybersecurity. We can assist your organization increase their cyber defenses in the following ways:

1. NIST Guides - Visit our website and check out our non-profit guides to cybersecurity.  Go to leapmanagedit.com or click on this link to go directly to the article: Non-Profit Leaders Guide to Cybersecurity
2. Self-Assessment Tool - Email us at thehelpfulteam@leapmit.com to request our NIST self-assessment tool. 
3. Cybersecurity Assessment – Email us to find out how your organization can qualify for a no cost cybersecurity assessment facilitated by the Leap Cybersecurity Team.