A conversation with Stephen Halasnik, Managing Partner of Financing Solutions, and Catherine LaCour, CEO and Executive Director of Blackbaud Giving Fund

Nonprofit organizations are operating in an increasingly competitive funding environment. As donor behavior changes and fundraising channels evolve, executive directors and nonprofit finance leaders are being forced to rethink how they attract supporters, communicate impact, and maintain long-term financial stability. In this conversation, Stephen Halasnik, Managing Partner of Financing Solutions (which provides lines of credit to nonprofit organizations), speaks with Catherine LaCour, CEO and Executive Director of Blackbaud Giving Fund, about how artificial intelligence is reshaping nonprofit fundraising, donor discovery, and organizational visibility.

For many nonprofits, the challenge is no longer simply raising money. It is becoming discoverable, trustworthy, and relevant in an AI-driven world where donors increasingly rely on recommendation engines, workplace giving platforms, and conversational search tools to decide where to give.

Quick Answer

Artificial intelligence can help nonprofits improve donor acquisition, strengthen fundraising strategies, increase visibility, and better manage nonprofit cash flow challenges by improving donor engagement and operational efficiency. Nonprofits that optimize their digital presence, donor communications, and workplace giving visibility may improve both fundraising performance and long-term working capital stability.

In This Episode

  • How donor behavior is changing
  • Why AI is becoming the new nonprofit discovery engine
  • How nonprofits can improve visibility in AI-powered searches
  • The growing importance of workplace giving platforms
  • How smaller nonprofits can compete using AI tools
  • Why nonprofit websites now directly impact donor trust
  • How AI can support fundraising without replacing human relationships
  • Practical first steps nonprofits can take immediately

The Nonprofit Funding Environment Has Changed

Nonprofits across the country are facing increased financial pressure. Competition for donor dollars has intensified, grant funding has become less predictable, and many organizations are experiencing delayed reimbursements or funding delays that create serious nonprofit cash flow challenges.

For organizations managing tight working capital, these disruptions can impact payroll, vendor payments, program delivery, and operational stability.

Catherine LaCour explained that many nonprofits, especially organizations with international missions, are being forced to diversify revenue streams and rethink traditional fundraising strategies.

“The needs in the world keep growing, which means nonprofits need more funding while more organizations compete for limited resources.”

That reality is pushing nonprofit leaders to explore new tools and technologies that can help them remain visible and financially resilient. For nonprofits managing delayed reimbursements, uneven donation cycles, or seasonal fundraising gaps, stronger donor engagement strategies can support long-term financial health. Many organizations also use nonprofit lines of credit to stabilize working capital and maintain operations while waiting for grant funding or major donations to arrive.

Donor Behavior Is Evolving

One of the biggest changes affecting nonprofit fundraising is how donors make decisions.

Historically, donors often developed long-term loyalty to a single organization or cause. Today, donor behavior is increasingly network-driven and socially influenced.

People are more likely to give because:

  • A trusted friend recommends an organization
  • They discover a nonprofit through workplace giving
  • AI-generated search tools surface the organization
  • Social proof validates the nonprofit’s impact

That shift makes donor stewardship more important than ever. Securing the first donation may happen through visibility. Securing the second donation requires trust, communication, and demonstrated impact.

AI Is Becoming the New Discovery Engine

Artificial intelligence is rapidly transforming how donors find nonprofits.

Instead of relying exclusively on traditional Google searches, many users now ask AI-powered systems direct questions such as:

  • What nonprofits help underserved children?
  • Which charities focus on ocean conservation?
  • What organizations have strong financial transparency?
  • Which nonprofits support veterans in rural communities?

AI systems scan publicly available information including:

  • Websites
  • Impact reports
  • Social media content
  • Workplace giving profiles
  • Media coverage
  • Leadership information

According to LaCour, nonprofits can no longer rely solely on traditional SEO strategies.

“We can’t rely only on traditional SEO or word-of-mouth visibility anymore. AI is now an important tool helping nonprofits become more visible and responsive to donor expectations.”

Why Nonprofit Websites Matter More Than Ever

Your nonprofit website is no longer just a marketing tool. It is now a credibility signal for both donors and AI systems.

Stephen Halasnik noted that nonprofit websites often immediately communicate organizational maturity, transparency, and operational strength.

Donors notice outdated websites. AI systems notice them too.

Nonprofit leaders should evaluate whether their website clearly communicates:

  • Mission and impact
  • Program outcomes
  • Leadership information
  • Financial transparency
  • Ways donors can engage
  • Current organizational priorities

“Your website is your face. It touches your donors, employees, culture, everything around your organization.”

Transparency Improves AI Discoverability

Modern donor expectations increasingly revolve around transparency and trust.

AI systems also reward organizations with structured, accurate, and trustworthy information because it is easier to interpret and validate.

LaCour emphasized that transparency now directly impacts nonprofit visibility.

“Transparency improves AI discoverability because systems rely on structured and trustworthy data.”

Nonprofits should focus on:

  • Clear impact reporting
  • Updated organizational data
  • Consistent messaging
  • Current leadership information
  • Accessible financial information
  • Regular website updates

These improvements not only help donor trust but may also improve how AI recommendation engines surface nonprofit organizations.

Workplace Giving Is a Major Opportunity

One of the most overlooked fundraising channels is workplace giving.

Blackbaud Giving Fund helps facilitate employer-based giving programs that connect corporations, employees, and nonprofits through:

  • Payroll deductions
  • Matching gifts
  • Volunteer grants
  • Recurring donations
  • Corporate volunteer programs

According to data shared during the conversation, workplace giving programs reached more than 27 million donors and generated approximately $5 billion in nonprofit contributions in 2023.

However, nonprofits with incomplete or outdated digital profiles may become effectively invisible inside these systems.

AI Can Help Solve Operational Friction

Artificial intelligence should not replace nonprofit professionals. Instead, it should remove repetitive operational burdens.

AI can assist with:

  • Donor segmentation
  • Data cleanup
  • Impact reporting
  • Fundraising analysis
  • Content drafting
  • Trend analysis
  • Volunteer matching

The goal is not automation for its own sake.

The goal is creating more time for:

  • Relationship building
  • Stewardship
  • Strategic planning
  • Mission delivery

“Treat AI like an intern. Trust the first draft, but review it.”

How Advanced Nonprofits Are Using AI

The most advanced nonprofits are not simply experimenting with AI tools. They are operationalizing their data.

Instead of just collecting donor information, they are using AI to identify:

  • Which donors are most engaged
  • Which supporters may increase giving
  • Which corporate partnerships align naturally
  • Which fundraising opportunities are being missed
  • What communication strategies improve retention

This leads to:

  • Better donor retention
  • More personalized campaigns
  • Smarter fundraising strategies
  • More predictable fundraising growth
  • Improved nonprofit working capital stability

Practical First Steps Nonprofits Can Take

Nonprofits do not need a massive AI budget to begin benefiting from these tools.

Some practical starting points include:

  • Ask AI to summarize your website
  • Review how your organization appears in AI searches
  • Improve impact storytelling
  • Strengthen donor communication clarity
  • Optimize workplace giving profiles
  • Analyze donor segmentation trends
  • Research peer organizations

One particularly useful exercise discussed during the podcast was asking AI a simple question:

“What does this organization do?”

The answer may reveal major gaps between your intended messaging and public perception.

Additional Insight for Nonprofit Leaders

Many nonprofit organizations focus heavily on fundraising campaigns while overlooking operational visibility. In today’s environment, discoverability itself has become part of fundraising strategy.

Organizations that communicate clearly, maintain transparent financial information, and demonstrate measurable impact may strengthen both donor confidence and long-term financial stability.

For nonprofits experiencing funding delays or uneven revenue cycles, stronger donor acquisition and retention strategies can also help reduce nonprofit cash flow pressure over time.

While AI cannot solve every financial challenge, it can help organizations build stronger systems that support more consistent fundraising performance and healthier working capital management.

Frequently Asked Questions

How can nonprofits use AI to improve fundraising?

AI can help nonprofits improve fundraising by analyzing donor behavior, improving donor segmentation, automating repetitive administrative tasks, drafting communications, and identifying fundraising trends that may improve donor retention and acquisition.

Can AI help nonprofits attract new donors?

Yes. AI-powered recommendation systems and conversational search tools increasingly influence how donors discover nonprofit organizations online.

Does AI replace nonprofit staff?

No. AI works best as a support tool that removes administrative friction while allowing nonprofit teams to spend more time building relationships and delivering mission impact.

Why is website optimization important for nonprofits?

Nonprofit websites now directly influence donor trust, AI discoverability, and workplace giving visibility. Clear messaging and updated information improve both credibility and search visibility.

What is workplace giving?

Workplace giving refers to employer-sponsored charitable giving programs such as payroll deductions, matching gifts, volunteer grants, and recurring employee donations.

How can AI help smaller nonprofits compete?

AI gives smaller nonprofits access to tools that previously required larger teams or expensive consultants, helping them improve communications, donor analysis, and visibility.

Full Podcast Transcript

Introduction

Stephen Halasnik: Welcome everyone. My name is Stephen Halasnik, and I’ll be your host for the Nonprofit MBA Podcast, as I have been for the past nine years. I am the co-founder of Financing Solutions, the largest provider of lines of credit to small nonprofits in the United States. We’ve been helping nonprofits manage cash flow and working capital challenges for over 15 years.

If you are interested in learning more about nonprofit lines of credit, please visit nonprofitmbapodcast.com.

Today, I’m excited to speak with Catherine LaCour of Blackbaud Giving Fund. We’re discussing how nonprofits can leverage AI tools to improve donor engagement, visibility, and fundraising effectiveness.

Catherine is a purpose-driven executive with more than 25 years of experience transforming organizations and advancing social impact. She currently serves as CEO and Executive Director of Blackbaud Giving Fund, leading its mission to connect people to the causes they care about worldwide.

Catherine, welcome to the Nonprofit MBA Podcast.

Catherine LaCour: Thanks, Stephen. I appreciate you having me.

How the Current Environment Is Affecting Nonprofits

Stephen Halasnik: Since early 2025, I’ve been asking every guest this question. How has the current administration and broader economic environment affected your organization or the nonprofits you work with?

Catherine LaCour: It has definitely been challenging for the nonprofit sector. I sit on several nonprofit boards, and many organizations, especially international mission-driven nonprofits, have experienced delays or reductions in grant funding.

What has become increasingly important is the need for nonprofits to diversify revenue streams and engage donors in new ways. While these challenges are difficult, they’re also forcing organizations to think differently about growth, donor engagement, and long-term mission sustainability.

Stephen Halasnik: I hear that from nearly every nonprofit leader I speak with. Needs continue growing, but funding is becoming more competitive.

Catherine LaCour: Exactly. The needs in the world continue increasing, which means nonprofits need more funding while competing for limited donor dollars. It’s creating a very challenging environment.

How Donor Behavior Has Changed

Stephen Halasnik: During COVID, many donors opened their wallets more freely. We haven’t really seen that continue in the same way.

Catherine LaCour: Donor behavior has absolutely changed. Individual donors still matter greatly, but networks and relationships have become even more important.

Today, people often donate because a trusted friend or colleague recommends an organization. Donors are less likely to have deep loyalty to a single nonprofit forever. That means organizations need stronger stewardship and communication strategies to secure long-term engagement.

The way donors think about giving, discover organizations, and evaluate nonprofits has evolved significantly.

How AI Is Changing Nonprofit Discovery

Stephen Halasnik: Search itself has changed dramatically. Google and AI search systems are constantly evolving how organizations are discovered online.

Catherine LaCour: Absolutely. We now live in a world where people expect fast, personalized answers. Donors increasingly rely on AI-generated search results, recommendation engines, and workplace giving platforms to decide where to donate.

If someone asks AI:

  • What nonprofits help underserved children?
  • What organizations focus on environmental conservation?
  • Which charities have strong financial transparency?

AI systems scan publicly available information like websites, social media content, impact reports, workplace giving profiles, and media coverage.

Traditional SEO and word-of-mouth marketing are no longer enough by themselves.

AI is now an important discovery engine for nonprofits.

The Importance of Clear, Trustworthy Content

Catherine LaCour: Nonprofits need AI strategies built around clear, accurate, and consistent content that AI systems can easily understand.

That includes:

  • Current organizational data
  • Clear impact reporting
  • Transparent financial information
  • Consistent messaging
  • Strong digital visibility

Fundraisers need to think about AI visibility the same way they think about donor stewardship.

Stephen Halasnik: Search used to revolve around keywords. Now authenticity, authority, and trust matter much more.

Why Nonprofit Websites Matter

Stephen Halasnik: One thing I’ve noticed reviewing nonprofit organizations for financing is that you can often tell a lot about an organization simply from its website.

Some websites immediately communicate professionalism and trust. Others unintentionally communicate instability or outdated information.

Catherine LaCour: Your website is absolutely critical. Every part of it matters, including leadership bios, mission language, and impact reporting.

AI can help organizations improve website messaging, personalize content, and visualize impact data more effectively.

But nonprofits should also ask AI how it interprets their organization.

Ask simple questions like:

“What does this organization do?”

The answer may reveal major gaps between how you think your mission is communicated and how the public actually perceives it.

Transparency and AI Discoverability

Catherine LaCour: Transparency is becoming a baseline donor expectation.

Donors want to understand:

  • How money is used
  • Whether programs create measurable impact
  • Whether leadership is credible
  • Whether financial information is accessible

Transparency also improves AI discoverability because AI systems rely on structured and trustworthy data.

Strong content strategy is no longer optional. It requires ongoing management and consistent updates.

Workplace Giving as a Growth Opportunity

Stephen Halasnik: Tell us more about Blackbaud Giving Fund and workplace giving.

Catherine LaCour: Blackbaud Giving Fund is an independent public charity that facilitates donations between individuals, corporations, and vetted nonprofit organizations worldwide.

Since August 2020, we’ve administered over a billion dollars in donations to nearly 300,000 nonprofits.

One major area of opportunity for nonprofits is workplace giving.

Workplace giving includes:

  • Payroll deduction programs
  • Employer matching gifts
  • Volunteer grants
  • Recurring employee donations

These workplace giving platforms have become powerful nonprofit discovery engines.

More than 27 million donors currently have access to workplace giving programs, generating approximately $5 billion in nonprofit donations through employer programs in 2023 alone.

But nonprofits often miss these opportunities because their digital profiles and websites are incomplete or difficult for AI systems to interpret.

How AI Helps Reduce Operational Friction

Catherine LaCour: AI is not meant to replace people. It’s meant to reduce friction and create more time.

AI can assist with:

  • Data cleanup
  • Donor segmentation
  • Impact reporting
  • Volunteer matching
  • Campaign drafting
  • Trend analysis

The benefit is giving nonprofit leaders more time to focus on relationship-building and mission impact.

I often tell teams: treat AI like an intern. Trust the first draft, but always review it carefully.

What Advanced Nonprofits Are Doing With AI

Stephen Halasnik: What are the most advanced nonprofits doing differently with AI?

Catherine LaCour: The strongest organizations are operationalizing data.

They aren’t just collecting donor information. They’re using AI to answer strategic questions like:

  • Which donors are most engaged?
  • Which supporters may deepen involvement?
  • What workplace giving opportunities are untapped?
  • Which partnerships align naturally with our mission?

AI helps surface patterns humans may otherwise miss.

That can improve donor retention, stewardship, personalization, and fundraising growth.

How Smaller Nonprofits Can Benefit

Catherine LaCour: One of AI’s greatest strengths is that it can level the playing field.

Smaller nonprofits now have access to tools that previously required large staffs or expensive consultants.

Organizations with strong community trust and compelling impact stories can use AI to strengthen communications, improve discoverability, and scale visibility.

Nonprofits do not need perfection before getting started. There are many low-hanging opportunities that can create meaningful results.

Practical Questions Nonprofits Should Ask AI

Stephen Halasnik: One thing I’ve found incredibly valuable is asking strong questions.

For example:

“What other nonprofits provide services similar to ours?”

That alone can uncover organizations, competitors, and strategies you may not have considered.

Catherine LaCour: I would encourage nonprofit leaders to think from the donor’s perspective.

Ask:

  • What would donors search for?
  • What problems are they trying to solve?
  • What emotional connection drives giving?

The more specific the question, the more useful the AI response becomes.

Stephen Halasnik: This has been a fantastic conversation. I learned a lot.

Catherine, thank you so much for joining us today.

Catherine LaCour: Thank you for having me. I really enjoyed the conversation.

Stephen Halasnik: I always end every podcast with the same reminder.

Executive directors and nonprofit leaders burn out because they spend so much time taking care of everyone else.

Please remember to prioritize yourself too.

Whether it’s exercise, prayer, meditation, coffee with a friend, or simply taking time to recharge, you cannot effectively serve your organization, employees, donors, or family if you completely neglect your own well-being.

Everybody have a fantastic day, and thank you for listening to the Nonprofit MBA Podcast.

Final Thoughts

Artificial intelligence is changing how nonprofits communicate, fundraise, and build donor relationships. But technology alone is not the solution. Trust, transparency, and mission clarity still drive long-term donor engagement.

For nonprofit leaders navigating funding delays, nonprofit cash flow challenges, or growing competition for donor attention, AI may provide an opportunity to strengthen visibility, improve fundraising systems, and build more resilient operations for the future.

Organizations facing temporary funding delays or nonprofit cash flow gaps may also benefit from flexible nonprofit line of credit solutions that help bridge working capital shortages while fundraising and grant cycles continue.

About Our Guest

Catherine LaCour is a purpose-driven executive with more than 25 years of experience transforming organizations and advancing social impact. She serves as the Chief Executive Officer and Executive Director of The Blackbaud Giving Fund, leading its mission to connect people to the causes they care about worldwide.

Prior to this role, Catherine served as Chief Marketing Officer at Blackbaud, leading global brand and marketing, corporate communications, and lifecycle marketing initiatives.