1.3 billion people adopted AI tools in just 39 months. That’s a faster uptake than the mobile phone revolution, which took 15 years to reach its first billion users. And yet, while nearly 90% of nonprofits are already using AI in some capacity, only 6–7% are seeing meaningful returns.
That gap is exactly what Dana Snyder and Justin Spelhaug, President of Microsoft Elevate, sat down to unpack at the Microsoft Global Nonprofit Leaders Summit. What followed was one of the most grounding, honest, and practical conversations about AI for nonprofits you’ll hear — not from a tech stage, but from someone who grew up watching his father run a Meals on Wheels nonprofit and his mother work as a child abuse investigator in Seattle.
That backstory matters, because it shapes everything Justin does at Microsoft Elevate.
KEY TAKEAWAYS
- AI adoption is accelerating faster than any prior technology — but only 6–7% of nonprofits are seeing real returns.
- Microsoft Elevate was built to close the gap between AI’s potential and nonprofit sector capacity.
- Nonprofits can use AI today for donor personalization, research, and predictive outreach — without a data team.
- The biggest shift isn’t tools — it’s posture. Leaders who engage now will be better positioned to serve their communities.
- Start with one painful process, not a transformation initiative.
Why AI Is Widening Inequality — and What Nonprofits Can Do About It
Justin was direct: “AI by default is proving to actually widen divides, unless we take action now.”
The speed of change is unlike anything we’ve seen before. But what makes this technological moment especially distinct isn’t just velocity — it’s that AI is capable of higher-level cognitive functions. It translates. It analyzes. It writes. It responds. That means it disrupts workflows in a way that the cloud or mobile era simply didn’t.
For nonprofits serving already-vulnerable communities, that disruption lands differently. The organizations closest to those communities have both the most to gain from AI and the most at risk if this moment passes them by.
This is the core problem Microsoft Elevate was built to address.
What Is Microsoft Elevate? A Three-Layer Approach to AI Inclusion
Microsoft Elevate focuses on building human capacity for the AI economy — and it approaches this work in three interconnected layers.
1. Education: Teaching critical thinking alongside AI tools
Justin spent time in Berlin watching teachers — not tech adopters, not early enthusiasts, but regular classroom teachers — learn how to use agentic AI alongside their students. Students were arriving in classrooms already confident they had information. The teacher’s role was shifting from being the source of truth to being the coach who helps students discern what’s actually true.
That requires what Justin calls metacognitive capabilities — thinking about thinking. Research conducted with Digital Promise showed that when AI is used casually in learning, students become more certain of their answers but actually learn less. When AI is integrated in a way that builds critical thinking and judgment, learning outcomes improve.
2. Workforce: Reaching workers beyond the classroom
Not every adult is in a classroom. Elevate is working with labor unions and government systems to ensure that electricians, pipe fitters, plumbers — people running small businesses, often with minimal tech infrastructure — aren’t left behind in the AI transition.
3. Nonprofits: Supporting the trusted delivery layer in communities
Organizations that are already the trusted delivery layer in communities need the technology, the programming, and the strategic support to use AI in service of the people they serve every day.
3 Ways Nonprofits Can Use AI for Fundraising and Donor Engagement Right Now
For the one- to ten-person fundraising and marketing teams doing the work of entire departments, Justin pointed to three areas where AI creates an outsized return quickly.
Personalized donor acknowledgment at scale
A good thank-you letter connects what a donor cares about with the impact of their specific gift. Historically, that’s labor-intensive. Now, AI can connect into your CRM — or even just your Excel file — and generate a personalized note that needs only light editing before it goes out. Hours saved, relationship strengthened.
Smarter, faster donor research
Understanding what makes a donor tick used to mean bouncing between LinkedIn, giving history, and organizational notes. AI can bring that together in minutes, helping you approach the right donor with the right ask at the right time.
Predictive modeling — no data team required
Looking at giving frequency, average gift size, and timing patterns to trigger smarter outreach isn’t new — but it used to require dedicated data staff. Today, this kind of predictive modeling is built into Excel. You don’t write code. You write a prompt in plain English.
“This AI revolution is about more inclusion. It is about human agency. It is about making us more human, not less human.”
— Justin Spelhaug, President, Microsoft Elevate
How Nonprofit Leaders Should Start with AI: Justin’s One-Thing Rule
Justin’s advice for where to start is simple: pick one thing that’s creating pain in your work right now, and try applying AI to that one thing. Not a strategy. Not a transformation initiative. One process.
The most important thing Justin said wasn’t about tools. It was about posture. Demand for mission is up. Funding is constrained. AI won’t solve every problem, but it may be part of how the nonprofit sector finds another way — if leaders choose to engage now.
Frequently Asked Questions
What is Microsoft Elevate?
Microsoft Elevate is a Microsoft initiative focused on building human capacity for the AI economy. Led by Justin Spelhaug, it works across three layers: education (helping teachers build AI literacy alongside students), workforce (reaching tradespeople and small business owners through unions and government systems), and the nonprofit sector (equipping mission-driven organizations to use AI in service of their communities).
How can nonprofits use AI for fundraising?
Nonprofits can apply AI to fundraising in several practical ways: generating personalized donor acknowledgment letters connected to CRM data, conducting faster and more comprehensive donor research, and running predictive models to identify the right donors for the right ask at the right time. All of these are accessible today without dedicated data staff — tools like Microsoft Excel now include AI-powered predictive modeling you can operate with plain English prompts.
Is AI adoption in the nonprofit sector actually happening?
Yes — nearly 90% of nonprofits are already using AI in some capacity. However, only 6–7% report seeing meaningful returns. The gap isn’t access; it’s strategic application. Organizations that focus on one specific pain point at a time, rather than sweeping transformation initiatives, are seeing better outcomes.
Why does AI risk widening inequality, and what’s the nonprofit sector’s role?
AI systems by default tend to serve those who already have access to resources and technology — reinforcing existing divides rather than closing them. Nonprofits are positioned to change that: they’re closest to the communities most at risk in this transition, and they’re trusted in ways that tech companies and governments simply aren’t. Their engagement in shaping how AI is applied in their communities is essential.
Comments