New Report from the Blackbaud Institute Shows Clear Link Between Social Impact Organizations' Tech Use and Fundraising Revenue Growth

Rhea-AI Summary

The Blackbaud Institute has released "The Status of Fundraising in the AI Era" report, revealing a strong correlation between technology adoption and fundraising success among social impact organizations. The study shows that 72% of organizations met or exceeded their fundraising targets in the past year.

Key findings highlight that 82% of nonprofits are using AI tools, primarily for content creation, with some utilizing it for prospecting and wealth screening. However, only 14% have formal AI policies in place. The report also found that 60% of fundraisers believe better training would improve technology use, while 56% emphasize the need for improved system integration. Among organizations that experienced revenue growth, 44% attributed it to adequate resourcing.

Positive

• Organizations with higher tech integration show stronger revenue growth
• 82% of nonprofits are already adopting AI tools for various purposes
• 72% of organizations met or exceeded fundraising targets
• Clear correlation between digital maturity and fundraising success

Negative

• Only 14% of nonprofits have AI policies in place
• Organizations face pressure to achieve more with fewer resources
• Insufficient resources cited as top reason for revenue decline by 51% of organizations

Report Illustrates How Tech-Savvy Organizations Are Gaining a Competitive Edge in the Age of AI

CHARLESTON, S.C., May 28, 2025 /PRNewswire/ -- The Blackbaud Institute, a research lab at Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today released a new report, The Status of Fundraising in the AI Era. Drawing from a national survey of nonprofit professionals, the findings show that social impact organizations with the most technology integration across fundraising, service delivery, supporter/student experience, and internal processes are more likely to report revenue growth.

While 72% of respondents reported that they either met or exceeded their fundraising target over the past 12 months, nonprofit organizations surveyed in the study reported that they continue to face growing expectations to achieve more with fewer resources. The 2025 Status of Fundraising Report takes a comprehensive look at technology adoption, the evolving role of AI, and how leading organizations are using both to optimize fundraising and organizational performance.

"We're at a pivotal moment where intentional technology use can create transformative change across the sector," said Carrie Cobb, chief data and AI officer, Blackbaud. "We see a lot of potential for organizations to drive real outcomes by investing in AI, building internal expertise, and establishing ethical frameworks that guide its use. This report shows that those organizations that do so are likely to see impressive benefits."

Key Findings from the Report: 

• Digital maturity is linked to revenue growth: Organizations with higher levels of technology integration are more likely to report revenue growth and less likely to report revenue decline compared to those with more limited tech use.
• The nonprofit sector is embracing AI: 82% of nonprofits are using AI tools—primarily free, generative platforms for content creation. To a lesser but still notable degree, organizations are leveraging AI for prospecting, wealth screening, and A/B testing. Attitudes around the use of AI in fundraising vary based on organization size and digital maturity, but the majority believe that AI will be pervasive in the sector and bring greater efficiency to their organizations.
• There is a clear need for organizational AI policies: Despite the increasing use of AI, sector-wide AI guidance and policies have room for improvement. Only 14% of nonprofits have an AI policy in place.
• Training and integration are critical enablers: 60% of fundraisers say better training would improve technology use, while 56% call for improved system integration to streamline collaboration and increase effectiveness.
• Resourcing remains a key driver of outcomes: Among organizations that grew revenue, 44% credited adequate resourcing as a primary factor—second only to exceptional gifts. In contrast, 51% of those who saw declines cited insufficient resources as the top reason.

For more information, the full Status of Fundraising report can be accessed here. All Blackbaud Institute resources are offered for free, as part of Blackbaud's commitment to accelerating social impact through data-driven insight.

About the Blackbaud Institute
The Blackbaud Institute develops leading-edge research and convenes expert voices to equip the social impact community with knowledge, insight, and confidence. The Blackbaud Institute draws from Blackbaud's data set, the most comprehensive in the social impact community. In addition, the Institute facilitates public research studies to drive original qualitative and quantitative insight. Our research agenda is grounded in a commitment to topics that social impact organizations can apply immediately to better understand, benchmark, and improve their essential business operations. We are guided by our commitment to the social impact sector to provide timely, transparent, and well-rounded research that is free to access. From how organizations run to how donors give, we're 100% focused on research and resources for this sector.

About Blackbaud
Blackbaud (NASDAQ: BLKB) is the leading software provider exclusively dedicated to powering social impact. Serving the nonprofit and education sectors, companies committed to social responsibility and individual change makers, Blackbaud's essential software is built to accelerate impact in fundraising, nonprofit financial management, digital giving, grantmaking, corporate social responsibility and education management. With millions of users and over $100 billion raised, granted or managed through Blackbaud platforms every year, Blackbaud's solutions are unleashing the potential of the people and organizations who change the world. Blackbaud has been named to Newsweek's list of America's Most Responsible Companies, Quartz's list of Best Companies for Remote Workers, and Forbes' list of America's Best Employers. A remote-first company, 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.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/new-report-from-the-blackbaud-institute-shows-clear-link-between-social-impact-organizations-tech-use-and-fundraising-revenue-growth-302467018.html

SOURCE Blackbaud

FAQ

What percentage of nonprofits are using AI tools according to Blackbaud's 2025 report?

According to the report, 82% of nonprofits are using AI tools, primarily focusing on free, generative platforms for content creation.

How many nonprofit organizations have AI policies in place in 2025?

Only 14% of nonprofits have an AI policy in place, indicating a significant gap in sector-wide AI guidance and policies.

What percentage of organizations met their fundraising targets according to BLKB's report?

72% of organizations either met or exceeded their fundraising targets over the past 12 months.

What are the main factors affecting revenue growth in nonprofits according to Blackbaud's study?

Among organizations that grew revenue, 44% credited adequate resourcing as a primary factor, second only to exceptional gifts. Conversely, 51% of those with declining revenue cited insufficient resources as the main reason.

How can nonprofits improve their technology use according to the 2025 Status of Fundraising Report?

60% of fundraisers indicate better training would improve technology use, while 56% recommend improved system integration to streamline collaboration and increase effectiveness.