Numerous universities and nonprofits are adopting artificial intelligence to boost fundraising from over 13,000 donors. Boston-based startup Givzey is partnering with these organizations to implement its AI-powered Virtual Engagement Officer (VEO). This initiative addresses the challenge of limited frontline fundraisers and aims to engage a higher percentage of donors more personally.
Similar AI-related fundraising efforts have surfaced previously, but they lacked the autonomous capabilities present in Givzey’s solution. Earlier initiatives primarily focused on using AI for data analysis to identify potential donors, rather than direct engagement. This current approach signifies a shift towards more interactive and personalized donor relations.
In contrast to previous methods, which often depended on large-scale data processing, Givzey’s VEO engages directly with donors. This addresses the ongoing issue of donor disengagement and aims to reverse the downward trend in fundraising returns. It reflects an evolution from passive data utilization to active, AI-driven fundraising strategies.
Participating Institutions and Goals
The cohort includes universities such as William & Mary, La Salle University, San Diego State University, Texas State University, and Wake Forest University. Nonprofits like The Jackson Laboratory and Parkland Health Foundation are also involved. Brooks Hull, vice president for university advancement at Texas State University, commented on the initiative’s relevance amid growing alumni bases and shrinking resources.
“In a landscape where our alumni base is growing exponentially while resources are shrinking, their innovative approach addresses the very challenges we face daily,” said Brooks Hull.
The six-month research and development phase will involve 1,000 donors per institution, focusing on increasing engagement among the 70-80% of donors who lack personal engagement. Adam Martel, CEO of Givzey, emphasized the importance of reversing the current downward trend in fundraising.
Various Strategies and Future Plans
Each of the 13 nonprofits will explore different strategies, such as enhancing annual fundraising, end-of-year campaigns, or re-engaging specific donor groups. Examples include connecting donors with students through emails and targeting those with “open to work” badges on LinkedIn for career services or alumni network connections.
Martel revealed plans to launch a beta version of the VEO in October or November, aiming for an annual price of $20,000 to $25,000 and a revenue generation target of $150,000 to $200,000 from donors. Future enhancements will focus on making the AI avatar more interactive, potentially answering questions and communicating in real-time.
“There is so much opportunity for autonomous fundraising to influence and impact the world in a way that has never really been thought possible,” said Martel. “It really is unlike anything the industry has ever seen.”
The adoption of AI in fundraising represents a significant shift in how universities and nonprofits engage with donors. By leveraging Givzey’s VEO, these organizations aim to enhance personal connections with donors, potentially increasing contributions. The success of this initiative could pave the way for more widespread use of autonomous fundraising tools in the nonprofit sector.
