Unlearning Traditional Approaches: AI for Efficiency in Nonprofits and Small Businesses

By Erin Merideth

In a world where every minute and dollar counts, nonprofits and small businesses often find themselves stretched thin, striving to fulfill their missions with limited resources. While their goals may differ—social impact or community service—both types of organizations face similar challenges, including time constraints, administrative burdens, and financial pressures. These hurdles can slow growth and restrict the reach of their services.

However, there’s a growing opportunity to rethink how they operate, mainly through artificial intelligence (AI). By unlearning traditional approaches to administrative work and embracing AI, these organizations can streamline their operations, liberating staff from tedious tasks and allowing them to focus on strategic, mission-driven activities. While some may worry about ethical considerations like data privacy and biases in AI, these challenges can be addressed with careful planning and thoughtful implementation.

1. Rethink the Reliance on Manual Data Entry and Paperwork 

Why?: Many organizations still rely on manual data entry and paper-based processes, which can be time-consuming and error-prone. By transitioning to digital systems and automating data entry through AI tools, they can save significant time and reduce human errors. 

Objection—Data Privacy: A common concern when using digital platforms is data security. Address this by using AI tools with robust encryption and privacy policies, ensuring compliance with data protection regulations. 

Small Step: Start by digitizing a single process, like moving paper-based donor records or invoices into a secure, cloud-based platform, then gradually explore automation tools for data entry (Microsoft Power Automate), taking meeting notes (Otter AI), and creating documentation (Scribe).

2. Reimagine Traditional Hierarchies and Decision-Making 

Why?: Many organizations follow rigid, top-down decision-making processes that can slow down responsiveness. AI can assist in data-driven decision-making, offering insights that allow quicker, more informed choices. 

Objection - Bias in AI: Concerns about AI biases are valid, as algorithms can unintentionally replicate existing biases. To counter this, organizations should choose AI tools that are transparent about their data sources and provide diverse datasets for training. 

Small Step: Start using simple data analysis tools that offer dashboards to visualize trends (e.g., Google Analytics for website traffic or basic CRM insights). Engage staff in using this data to make decisions collaboratively, fostering a culture of shared responsibility. 

3. Challenge the Belief That All Work Must Be Done In-House 

Why?: Many nonprofits and small businesses believe handling all administrative tasks internally is necessary for control and quality. However, outsourcing or using AI for tasks like bookkeeping, scheduling, or customer support can free up internal resources. 

Objection -Ethical Responsibility: Some worry that outsourcing or automating work may reduce jobs. However, by automating repetitive tasks, staff can shift their focus to higher-impact roles, like building relationships with clients or donors. 

Small Step: Begin by automating one repetitive task, such as using a meeting scheduling tool, like Calendly or a chatbot for simple customer queries, and assess the time saved. Use that time to engage in strategic activities like planning outreach efforts. 

4. Examine Resistance to Technology in Donor and Customer Engagement 

Why?: Many nonprofits and small businesses hesitate to adopt technology in engagement, fearing it might reduce the personal touch. However, AI can provide personalized experiences at scale, such as tailored communications based on donor or customer preferences. 

Objection - Losing Human Connection: AI should augment, not replace, human interaction. For instance, while AI can automate thank-you notes, it doesn’t replace a heartfelt phone call or a personal email. 

Small Step: Implement AI tools to analyze past donor or customer behavior. Then, use those insights to create personalized emails or targeted social media content. Complement these automated messages with personal follow-ups for a balanced approach.

5. Embrace Transparency in Operations

Why?: Transparency, especially in financial reporting and impact measurement, can seem risky. However, using AI tools for transparency helps build trust with donors, customers, and stakeholders, showing clear impact and financial management. 

Objection - Bias in Reporting: AI-generated reports might overlook specific nuances. AI insights can be used as a starting point and integrated with human judgment to mitigate this. 

Small Step: Use a simple AI-powered reporting tool like Power BI from Microsoft, or Looker from Google to generate insights on operational efficiency or donor trends and share these findings with your team or stakeholders, which can demonstrate accountability and encourage data-informed decisions.

Taking the First Steps towards automating your organization

Start Small: Focus on a single process where AI can save time—like automating donor thank-you emails or streamlining appointment scheduling.

Invest in Training: Dedicate time for staff to learn how to use new digital tools, building comfort with technology.

Prioritize Data Security: Choose platforms that are transparent about their data practices and align with your organization’s values.

Nonprofits and small businesses can improve efficiency without compromising ethics or human touch by unlearning old habits and embracing a balanced approach to AI. This shift can help them reach more people and make a greater impact.

Now, it's time to take the first steps. Start small, invest in training, and prioritize data security. The future of your organization's operations could be just a few AI tools away. 

Reference: Challenges in Implementing AI in Nonprofit Organizations (yeeboodigital.com)

This post was originally published on onegirlguru.com on October 25, 2024

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About the Author

I'm Erin Merideth, a Leadership & Talent Strategy Expert dedicated to guiding senior executives and Centers of Excellence at S&P 100 companies to create innovative workforce development practices. With over 25 years of executive experience, I've had a front-row seat to large organizations' behind-the-scenes dynamics and unwritten rules. I've coached some of the world's top business leaders, helping them strategically reach their goals while maintaining balance in their lives. I understand what it's like to feel frustrated at work because I've been there too — making it to the top and learning countless lessons along the way. My approach is practical, rooted in empathy, and focused on helping you succeed at both work and life by making strategic, empowering decisions.

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