How to use AI safely: ensuring data privacy for charity organisations

Is using AI safe for charities?

AI can be safe and beneficial for charities if used responsibly, but it also comes with risks that need careful management. Key safety concerns include data privacy, ethical considerations, and transparency in AI decision-making. Charities must ensure AI tools comply with data protection regulations (e.g. GDPR, CCPA) and maintain human oversight to prevent bias or misinformation.

Using AI safely can therefore enhance fundraising, donor engagement, and operational efficiency while protecting sensitive information. By choosing trusted AI providers, prioritising security measures, and being transparent with donors, your charity can safely harness AI’s power to maximise its impact.

The key areas of using AI safely

Where data is concerned, using AI safely is of paramount importance. This is especially the case for the nonprofit sector as your database will consist of hundreds, if not thousands of personal information from your donors and supporters.

With this data comes huge responsibility to ensure that it remains safe and away from the wrong hands. In order to support that this remains the case, we outline the key areas where safe AI use is crucial.

Compliance with data protection laws

AI systems are not exempt from adhering to both global and local data protection regulations. Several that you should be aware of include:

• GDPR (General Data Protection Regulation - EU): Requires clear consent, secure data processing, and the right for users to request data deletion.
• CCPA (California Consumer Privacy Act - US): Gives individuals more control over their personal data and how it's shared.
•  HIPAA (Health Insurance Portability and Accountability Act - US): Protects sensitive health-related data if a nonprofit deals with healthcare services.

Top tip: Choose AI tools that comply with these laws and provide clear privacy policies.

Data storage and encryption

Although AI can support you in managing your day-to-day processes, it must still be applied via an approach whereby data is kept safe. This can be maintained by using:  

• Encrypted databases to store donor and financial information securely.
• End-to-end encryption for data transfer, preventing unauthorised access.
• Cloud-based AI solutions (e.g. AWS, Google Cloud, Microsoft Azure) that offer high levels of data protection.

Top tip: Work with trusted AI software suppliers who have certified security measures (e.g. ISO 27001, SOC 2 compliance).

Control and user permissions settings

Internal access is also a major factor to consider. With certain information stored within your database being sensitive, you will inevitably want certain members of staff within your organisation to access this. You can monitor this, by:

• Implementing role-based access to limit who can view or edit sensitive AI-processed data.
• Using multi-factor authentication (MFA) for staff accessing AI-driven tools.
• Regularly reviewing and updating permissions to prevent unauthorised access.

Top tip: Only authorised staff should access AI-generated donor profiles and predictive analytics.

Transparent AI practices and ethical data use

Transparency is key wherever AI and data are concerned. Charities must therefore clearly inform donors, volunteers, and service users of how their data is used in AI-powered systems. This can be supported, by:

• Obtaining explicit consent before using AI for donor segmentation, predictive analytics, or targeted fundraising.
• Avoiding excessive data collection - AI should only process necessary information to achieve its purpose.

Top tip: Include a clear privacy statement on donation forms and AI-driven communications.

How to use AI safely: key steps for charities

When delving into the topic of how to use AI safely, there are steps that you can put into place to ensure that your charity’s sensitive data remains under lock and key. Without covering the key bases, you run the risk of information being breached, causing you and your supporters potential problems.

We outline these steps below.

1. Establish clear AI ethics and governance policies

Establishing clear AI ethics and governance policies dovetails effectively with your charity demonstrating transparency in relation to this technology. You can clearly outline this, by:

• Defining how AI will be used in fundraising, donor engagement, and operations.
• Developing an AI ethics policy to ensure fairness, accountability, and transparency.
• Assigning an AI oversight team to monitor responsible AI use.

Top tip: Publish a public AI usage statement to build donor trust.

2. Ensure compliance with data protection laws

By complying with both local and international data protection regulations, you can ensure that you remain on the right side of the law, while your sensitive information remains safe. You can ensure this, by:

• Following GDPR, CCPA, HIPAA, and any other local and international regulations to protect donor and service user data.
• Obtaining clear consent before using AI for donor analysis or automated messaging.

Top Tip: Don’t rest on your laurels - regularly review privacy policies to align with legal updates.

3. Implement strong data privacy and security measures

While demonstrating the correct ethical procedure and staying on the right side of regulatory law are essential, you should also focus on implementing the correct security measures. These can include:

• Using encrypted storage for AI-processed data.
• Applying role-based access controls (RBAC) to limit data access.
• Regularly conducting security audits to identify vulnerabilities.

Top tip: Work with trusted cybersecurity firms to safeguard AI systems.

4. Maintain transparency in AI decision-making

AI should be used to support your processes – so don’t shy away from letting people know that you use it! In fact, by being transparent, your donors and service users will gain a better understanding of your organisation while commending your charity on taking a step into the future. Keep your audience in the loop, by:

• Clearly explaining to donors and stakeholders how AI is used in campaigns.
• Disclosing when AI is involved in communications, data analysis, or fundraising predictions.
• Allowing donors to opt out of AI-driven communications if they prefer human interaction.

Top tip: Include a disclaimer on AI-generated emails or chatbot interactions.

5. Monitor and audit AI systems regularly

AI tools can play a fundamental role in supporting you to enhance your day-to-day charity processes. But this doesn’t mean that your approach to AI can’t be improved. You can enhance your AI strategy, by:

• Conducting routine performance reviews to ensure AI remains accurate, ethical, and unbiased.
• Adjusting AI models based on real-world outcomes to improve effectiveness.
• Gathering feedback from staff and donors to assess AI’s impact and reception.

Top tip: Schedule quarterly AI performance reviews to refine your strategies.

Find out more about how to use AI safely

Using AI safely is essential to using this form of technology successfully. By ensuring that your sensitive information is kept safe and secure, you can plan and execute your AI strategies in the sound knowledge that they will significantly develop your campaigns.

Are you interested to discover more on how to use AI safely? Our team of professionals are happy to answer any questions you have and put your worries at ease.