Game-Changing 2025 AI Benchmark Report: How Artificial Intelligence Is Revolutionizing the Nonprofit Sector

Wilmington, DE – January 24, 2025 – AI is no longer just a tool for tech giants — nonprofits are harnessing its transformative power to redefine their impact. The ‘State of AI in Nonprofits: 2025’ Report, a groundbreaking collaboration between TechSoup and Tapp Network, uncovers how organizations are leveraging AI to overcome challenges, drive efficiency, and expand their mission. Based on insights from over 1,300 nonprofit professionals, this report provides an unparalleled look at the current state and future trajectory of AI adoption in the nonprofit sector.

Key Findings:

• Resource Disparities: Larger nonprofits, with annual budgets exceeding $1 million, are adopting AI tools at nearly twice the rate of smaller organizations (66% vs. 34%), underscoring a growing digital divide.
  
  
• Strategic Gap: While 85.6% are exploring AI tools, only 24% have a formal strategy, revealing a major gap between interest and actionable planning.
  
  
• Capacity: Almost half of nonprofits (43%) rely on just 1-2 staff members to manage IT or AI decision-making, creating barriers to effective implementation.
  
  
• Optimistic Outlook: Despite challenges, nearly half (47%) of respondents believe AI can significantly boost their organization’s productivity and efficiency, signaling growing confidence in AI’s transformative potential.

This research highlights a critical inflection point for nonprofits, recognizing AI’s transformative potential while encountering barriers to effective integration,” said Joe DiGiovanni, co-founder of Tapp Network. “Identifying the gaps in expertise, resources, and technology is essential for nonprofits to transition from AI exploration to successful implementation.

Areas of Priority for AI Implementation:

• Grant Writing and Fundraising: 60% of respondents show strong interest in AI for optimizing grant writing and fundraising efforts.
  
  
• Marketing and Donor Engagement: Nonprofits are beginning to explore AI for streamlining workflows, with 24.6% using AI for grant writing and 33% for content marketing.
  
  
• Data-Driven Decision-Making: Only 12.8% of nonprofits currently leverage predictive analytics, indicating untapped potential for data-informed strategies.

Despite minimal resistance to AI adoption, with only 1% opposing the technology, the report calls for targeted support for smaller nonprofits that face resource constraints.

"What’s particularly compelling is the sector's readiness to embrace AI despite existing implementation challenges," noted Janelle Levesque, Senior Director of Marketing Operations at Tapp Network. "Our focus is now on assisting organizations to develop strategic frameworks that align AI capabilities with their mission-driven objectives."

About TechSoup Global

The TechSoup Global Network brings together 60+ organizations on six continents that collaborate to support more than 1.3 million NGOs in meeting the world's most pressing needs. The partners, operating in 39 languages, are all united by a dedication to creating social impact through access to technology. Together, TechSoup Global Network partners bring impact at scale.

About Tapp Network

As an Inc. 5000 Fastest Growing Company, Tapp Network delivers technology modernization, digital marketing, and AI integration services to purpose-driven organizations. Tapp’s performance-driven approach has empowered over 1,000 government and nonprofit clients — including the US Census, Departments of Labor, Health, and Education, United Way, Boys and Girls Clubs, and the American Heart Association — to enhance operational efficiency and maximize social impact through innovative solutions.

Download the Report: 

Don’t miss out on the insights shaping the future of nonprofits. Download the full report today and stay ahead in the AI revolution.