Nonprofits Will Adopt AI-Powered Operations and Impact Reporting
Look for nonprofits to turn to AI to power their customer relationship management systems, which already unify functions such as donor, volunteer and beneficiary data, according to Yesner.
Nonprofits are adding AI to their CRM platforms for donor segmentation, retention-risk scoring and personalized outreach, Yesner notes. A common data backbone improves operations throughout the whole process. She adds that AI-enabled CRM platforms provide a 360-degree view of donors, volunteers and beneficiaries. Nonprofits can access this data via email, web, mobile or in-person interactions.
“The next step is to make those AI capabilities routine across donor engagement, case management and impact reporting,” Yesner says.
As nonprofits move toward AI-powered operations, they will need more training in AI tools, Yesner observes.
“We see CIOs partnering more with HR to overcome resistance to change and implement training programs,” Yesner says.
WATCH: How AI will be used across industries in 2026.
Nonprofits use dashboards to display program and beneficiary data. Dashboards can convert real-time program feedback into visualizations for funders, Yesner says.
“In 2026, I expect this kind of AI-assisted reporting to become a baseline expectation for global NGOs rather than a differentiator,” she adds.
In 2025, nonprofits laid the groundwork to clean up business processes to build more visibility, and in 2026, AI tools will allow them to expand AI-powered back-office operations such as invoice processing, according to Amy Sample Ward, CEO of NTEN, a leading technology capacity-building nonprofit.
AI can also provide visibility into program operations to allow nonprofits to track whether people in their database might show up for a program such as housing assistance or drop out, Sample Ward says.
AI tools could also aid nonprofit programs such as food pantries in tracking the stock for their shelves.
Nonprofits Will Choose Unified Platforms for Digital Transformation
Nonprofits are moving toward unified data models and shifting away from spreadsheets and siloed databases, according to Yesner. By using unified data models, nonprofits can link donations to specific programs and service activities as well as outcomes in close to real time, she says.
The nonprofit sector has long considered whether to use separate tech tools or unify their platforms, according to Sample Ward.
“Do we move to a unified, all-in-one platform? Or, do we have best in class for everything they do? It's never been a sectorwide answer,” Sample Ward says.
Some nonprofits are consolidating fragmented solutions into unified cloud platforms that incorporate fundraising CRM, service delivery and field operations, Yesner says, citing IDC’s research.
“Instead of separate systems for donor management, casework and volunteer scheduling, they are building a single system of record with workflow automation and embedded AI,” she says.
Yesner expects nonprofits to simplify integration of the areas of finance, HR and data warehouses, and to retire redundant tools and reduce IT operating costs.
As nonprofits move finance and CRM applications to the cloud, they improve their decision-making, boost their efficiency and agility, and improve their compliance and accountability, Yesner says. She expects cloud financial services along with AI-embedded CRM to be a “de facto standard” for nonprofits to work toward as they aim for the efficiency and transparency that donors expect.
