What does philanthropy look like in a world of AI, crypto, Instagram and a growing number of social media platforms? Giving back is undergoing a major transformation, driven by digital innovation, social impact investing, corporate social responsibility and a new generation of donors with different expectations. Nonprofits and donors alike are being called to adapt, rethink and innovate. The future of giving isn’t on the horizon — it’s already here — and changing in real time.

AI and Its Impact on Philanthropy

If you find yourself both curious and wary of AI, you’re in good company. While many use AI on a daily basis, some are still intimidated by it. Yet, AI is the fastest adopted technology in world history.

According to a Chronicle of Philanthropy Leadership Survey, about 46% of nonprofits are currently using AI and 77% expect to use it more actively in the next three to five years. The organizations that are embracing AI are using it to help them fundraise and sift through more mundane tasks. Some are using AI to delve deeper into their particular service area needs based on data, statistics and research such as analyzing patterns in why people give and using those insights to write tailored emails. Some nonprofits are using AI for grant writing, helping them to reduce writing time by 80%-90%, and allowing them to apply for more grants.

Donors’ perceptions of AI are varied. According to a 2024 study by Nathan Chappell and Cherian Koshy, more than 82% of respondents said they are somewhat or very familiar with AI. However, their concerns about AI and charities are worth noting. Among the findings: 60% were worried about privacy and data security as well as a lack of personal interaction and 43% were concerned about job displacement. On the upside, 48% of donors surveyed see AI’s high potential to enhance nonprofits’ effectiveness, specifically in fraud detection and operational efficiency.

These statistics aside, AI is here to stay and moving at a breakneck pace. Its incredible features are changing daily and soon people will not only be able to use it for research, writing and image generation, but also for creating film. How nonprofits and donors manage AI will certainly have an impact on the future of giving.

Younger Donors are Shifting the Giving Landscape

There is an unprecedented transfer of wealth occurring as Baby Boomers pass trillions in assets to younger generations. This shift is reshaping philanthropy as Millennials and Gen Zers prioritize causes like the environment and social justice. They are more likely to support organizations or Field of Interest Funds focused on specific issues such as the Community Foundation of Anne Arundel County’s Performing and Visual Arts, Women and Girls, Grants 4 Teachers and Community Crisis Funds. This makes sense as philanthropy is becoming more collaborative, driven by younger donor’s desire for systemic change.

Authenticity matters as younger donors want to support organizations that reflect their values and offer a sense of purpose. They are motivated by a need to see tangible, systemic change. For these donors, giving isn’t a transaction; it’s a way to be part of something bigger. To reach them, nonprofits need more than a strong mission — they need compelling storytelling and a strong online presence. Platforms like Instagram and TikTok are key to connecting with younger generations.

Giving methods are also evolving. In the past few years, philanthropic giving has changed with more individuals exploring alternative methods of donating such as online giving and donating non-cash assets like stock or cryptocurrency. This reflects the broader shift away from writing checks and traditional payment methods.

Embracing Technology and the Future

Technology continues to advance at a dizzying pace — even faster than we can write about it. Yet, many nonprofits are struggling to keep up. That same Chronicle of Philanthropy survey reveals that 67% say technology deficits are limiting their growth, while 89% view technology as vital to their fundraising success. So what’s standing in the way? For 88% of nonprofits, it comes down to budget constraints. Many struggle to cover the basics, let alone invest in more advanced technology. Since grants rarely fund technology, nonprofits rely on donors to stay current and competitive in an increasingly digital world.

This underscores the need for donors to think about giving unrestricted gifts, which allow nonprofits to allocate the funds according to their most pressing needs. While technology continues to advance, nonprofits still need our help to stay afloat.

This article originally appeared in the July 24, 2025 issue of The Capital Gazette.