New Blackbaud Institute Research Reveals Key Gaps Social Impact Organizations Must Bridge to Achieve Transformational Results with AI

Rhea-AI Summary

Blackbaud Institute (NASDAQ: BLKB) released new research on AI use in the social impact sector, highlighting an “AI effectiveness gap.” While 85% of professionals use AI, only about 33% view it as very effective.

The report identifies four gaps—effectiveness, infrastructure, data-readiness, and transparency—separating “AI-Adaptive” organizations from others. AI-Adaptive groups save more time per employee and report stronger results in revenue, donor retention and staff productivity.

News Market Reaction – BLKB

+2.37%

+2.37% Session close to close

In the Jun 24 session, BLKB gained 2.37%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement strengthens Blackbaud’s AI thought-leadership, quantifying gaps like only 33% view...

Analysis

This announcement strengthens Blackbaud’s AI thought-leadership, quantifying gaps like only 33% viewing AI as very effective while highlighting sizable time savings. With elevated short interest and prior AI launches, investors may watch for direct revenue linkage.

Key Figures

AI use by professionals: 85% Effective AI use: 33% AI-Adaptive orgs: 10% +5 more

8 metrics

AI use by professionals 85% Social impact professionals reporting AI use at work

Effective AI use 33% Professionals saying their organization uses AI very effectively

AI-Adaptive orgs 10% Organizations at top of AI maturity scale

Paid/enterprise AI tools 50% Organizations using paid or enterprise AI tools

Free AI reliance 25% Organizations relying exclusively on free AI versions

Excellent data health 20% Fewer than 20% rate data health as excellent

Donor transparency importance 76% Donors saying it’s important to know when and how AI is used

AI time savings $500/employee/week Average time savings from AI for organizations surveyed

Previous AI Reports

5 past events · Latest: Jun 17 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 17	AI conference keynote	Positive	-4.4%	AI innovator Priya Lakhani OBE to keynote bbcon 2026 social impact tech event.
May 19	ESG/AI impact report	Positive	-1.8%	2025 Impact Report highlights responsible AI progress, carbon neutrality, and global impact.
Apr 27	AI tools showcase	Positive	-0.8%	Showcasing AI fundraising tools and Microsoft-certified nonprofit AI capabilities at AFP ICON.
Mar 26	AI-focused conference	Positive	-0.0%	Opened registration for bbcon 2026, a three-day conference centered on AI innovation.
Mar 17	AI product launch	Positive	+1.0%	Launched Development Agent, first Agent for Good for supervised donor-engagement workflows.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

AI-related announcements for BLKB have generally been followed by mild to moderate share price weakness despite positive themes.

Key Terms

ai maturity scale, enterprise ai tools, data health, certification program

4 terms

ai maturity scale technical

"the 10% of organizations at the top of the AI maturity scale that have moved"

A maturity scale for artificial intelligence is a staged checklist that measures how well an organization is prepared to build, deploy, and govern AI—like grading how road-ready a car is before a long trip. For investors, it signals how likely a company is to turn AI projects into reliable products, control costs and risks, and sustain competitive advantage, so higher maturity often implies lower execution risk and clearer paths to revenue.

enterprise ai tools technical

"with only 50% of organizations using paid or enterprise AI tools and nearly 25%"

Enterprise AI tools are software systems companies use to apply artificial intelligence across business functions—automating routine work, analyzing large datasets, and supporting decisions. Think of them as smart upgrades to a company’s equipment that can make operations faster, cheaper, or open new revenue opportunities; their adoption can materially affect productivity, profit margins and growth prospects, so investors watch them as drivers of future value and risk.

data health technical

"Fewer than 20% of respondents rate their organization's data health as excellent,"

Data health is the overall quality and fitness of a dataset—how accurate, complete, consistent, timely and accessible the information is for its intended use. It matters to investors because poor data health is like driving with a dirty windshield: it can obscure risks, lead to bad decisions, misstate performance, trigger compliance problems, and increase uncertainty, while good data health supports reliable analysis and more confident investment choices.

certification program technical

"The first initiative of the Coalition is a free certification program for social"

A certification program is a formal process where an independent organization checks that a product, service, process or company meets defined standards and awards a recognizable credential—like a seal of approval or a driver’s license for business practices. For investors, certifications matter because they signal lower regulatory, operational or reputational risk, can open access to markets or customers, and often influence costs and revenue prospects by showing third-party validation of quality or compliance.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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AI Adoption in the Social Impact Sector Is Booming, but Effectiveness Is Not; New Report Investigates Why and What Organizations Should Do Next

CHARLESTON, S.C., June 24, 2026 /PRNewswire/ -- The Blackbaud Institute, a research lab at Blackbaud (NASDAQ: BLKB), the world's leading provider of AI‑powered solutions for social impact, today released new research that delivers a clear framework for intentional AI adoption to support the social impact sector's ability to maintain financial resilience, grow donor confidence, and continue responding to pressing societal needs despite constrained resources.

The report, Bridging the AI Effectiveness Gap: New Research on What Drives AI Impact and Trust in the Social Sector, draws on surveys from thousands of social impact professionals and donors to identify what separates organizations that are seeing real results from AI from those that are not.

While 85% of social impact professionals report using AI at work, only about 33% believe their organization is using it very effectively. The research reveals a clear divide between a small group of "AI‑Adaptive" organizations—the 10% of organizations at the top of the AI maturity scale that have moved beyond experimentation to systemic, governed AI use—and the majority of organizations that are still applying AI in fragmented, individual ways. The AI‑Adaptive organizations are realizing significant dividends on their AI investment, consistently reporting stronger outcomes tied to long‑term sector health, including revenue growth, donor retention and staff productivity.

This research comes at a critical time for the social impact sector with traditional fundraising models under increasing strain due to staffing shortages, high turnover and limited resources, all of which directly impact organizations' ability to sustain revenue growth.

"AI presents a transformative opportunity to fundamentally reshape social impact," said Carrie Cobb, chief data and AI officer, Blackbaud. "But this research makes it clear that adoption alone is not enough. To achieve meaningful outcomes, organizations must be intentional about grounding their AI approach in strong data, clear governance and transparency. It's about more than time and cost savings. It's about leveraging AI to position the sector for a future of sustainable growth."

Key Findings

• There are four key gaps that organizations should address to improve AI maturity:
  • The effectiveness gap: Despite widespread use, only about 33% of professionals say AI is delivering strong organizational results, signaling a disconnect between individual experimentation and organization‑wide impact.
  • The infrastructure gap: Adoption often outpaces readiness, with only 50% of organizations using paid or enterprise AI tools and nearly 25% relying exclusively on free versions, limiting scalability and increasing risk.
  • The data‑readiness gap: Fewer than 20% of respondents rate their organization's data health as excellent, even though data quality is foundational to effective and responsible AI use.
  • The transparency gap: 71% of donors are either more comfortable or equally comfortable with the social sector using AI than for-profit companies, but transparency is key—76% of donors say it's important to understand when and how AI is used, but only 26% of organizations say they disclose this information today.

• Time savings exist everywhere, but impact does not:
  • The average organization saves $500/employee/week using AI.
  • AI-Adaptive organizations save $621/employee/week using AI and, more importantly, are reinvesting that time savings into areas that increase revenue and mission delivery, like using AI to help identify and reach new donors, better engage existing donors, reduce costs, and raise more money. 

• There's a clear AI maturity dividend:
  • Organizations that address the four key gaps to move beyond ad hoc AI use and apply AI intentionally across the organization see compounded value.
  • That return comes not just from time savings, but from using AI to increase revenue, strengthen mission delivery and reduce risk.

The AI Imperative for Fundraising
For fundraising teams, AI offers a path to more efficient operations, more personalized outreach and greater scale, but only if organizations evolve how they use technology and do so with trust as the foundation.

"The AI opportunity is unlike any other in the history of fundraising, but realizing it requires more than new tools," said Sudip Datta, chief product officer, Blackbaud. "The opportunity isn't just in using AI—it's in using it in ways that build trust, unlock the power of data, and drive smarter action. The future health of the social impact sector depends on organizations rethinking their technology and operating models to move up the AI maturity scale, so that AI helps reduce friction, strengthen relationships and unleash resources at the speed of need."

To support the sector in this journey, Blackbaud has convened the AI Coalition for Social Impact, a collaboration of leading organizations and experts committed to removing barriers to responsible AI adoption across the social impact sector and unlocking the power of AI for good. The first initiative of the Coalition is a free certification program for social impact professionals launching this summer.

Read the Report
To explore the full findings and learn what distinguishes AI‑Adaptive organizations from the rest of the sector, read the Bridging the AI Effectiveness Gap report here.

About the Blackbaud Institute
The Blackbaud Institute is a research lab and educational resource powered by the Blackbaud Philanthropic Dataset, the world's largest combined dataset on giving, volunteering, grantmaking, and social impact. The Institute conducts independent research and publishes insights that help organizations understand trends shaping the social impact sector and make more informed decisions. Learn more at institute.blackbaud.com.

About Blackbaud
Blackbaud (NASDAQ: BLKB) is the world's leading provider of AI-powered solutions for social impact. Serving nonprofits, educational institutions, companies committed to corporate social responsibility, and individual change makers, Blackbaud propels impact at scale with the sector's most intelligent solutions for fundraising and engagement, education solutions, financial management and CSR and grantmaking. With the deepest expertise powered by the world's largest philanthropic data set, the most connected workflows, and the most powerful impact network, Blackbaud's solutions are building a future where resources are unleashed at the speed of need. Blackbaud has been recognized by Fast Company, Newsweek, Quartz, Forbes and more for AI innovation, responsible leadership and workplace excellence. Blackbaud has operations in the United States, Australia, Canada, Costa Rica, India and the United Kingdom, supporting users in 100+ countries. Learn more at www.blackbaud.com or follow us on X/Twitter, LinkedIn, Instagram and Facebook.

Media Inquiries
media@blackbaud.com

Forward-looking Statements
Except for historical information, all of the statements, expectations and assumptions contained in this news release are forward-looking statements that involve a number of risks and uncertainties, including statements regarding expected benefits of products and product features. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: general economic risks; uncertainty regarding increased business and renewals from existing customers; continued success in sales growth; management of integration of acquired companies and other risks associated with acquisitions; risks associated with successful implementation of multiple integrated software products; the ability to attract and retain key personnel; risks associated with management of growth; lengthy sales and implementation cycles; technological changes that make our products and services less competitive; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge at the SEC's website at www.sec.gov or upon request from Blackbaud's investor relations department. All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.

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SOURCE Blackbaud

FAQ

What did Blackbaud Institute (NASDAQ: BLKB) reveal about AI adoption in its June 24, 2026 research?

Blackbaud Institute reported that 85% of social impact professionals use AI at work, but only about 33% see very effective organizational results. According to Blackbaud, this points to an “AI effectiveness gap” between experimentation and organization-wide impact.

What are the four key AI gaps highlighted by Blackbaud Institute’s 2026 report for social impact organizations?

The report outlines four gaps: effectiveness, infrastructure, data-readiness, and transparency. According to Blackbaud, these gaps limit AI’s impact on revenue, donor confidence, and mission delivery, and must be addressed to reach higher AI maturity and systemic, governed AI use.

How much time do AI-Adaptive organizations save per employee, according to Blackbaud’s new AI research?

AI-Adaptive organizations save about $621 per employee per week using AI, compared with an average $500. According to Blackbaud, these leading organizations reinvest time savings into activities that increase revenue, engage donors, reduce costs, and support mission delivery.

What does Blackbaud’s 2026 study say about donor attitudes toward AI use in the social sector?

The study finds 71% of donors are as or more comfortable with social sector AI use than with for-profits. According to Blackbaud, 76% want to understand when and how AI is used, yet only 26% of organizations currently disclose this information.

Who are “AI-Adaptive” organizations in Blackbaud Institute’s AI maturity research?

“AI-Adaptive” organizations are the top 10% on Blackbaud’s AI maturity scale that have moved from experimentation to systemic, governed AI use. According to Blackbaud, they report stronger outcomes in revenue growth, donor retention, and staff productivity than other organizations.

What is the AI Coalition for Social Impact launched with support from Blackbaud?

The AI Coalition for Social Impact is a collaboration of leading organizations and experts focused on responsible AI adoption in the social sector. According to Blackbaud, its first initiative is a free AI certification program for social impact professionals launching in the summer.