Skip to main content

AI and NPO fundraising: Advocating for responsible adoption

pexelscom photo robot pointing on a wall

AI is transforming how NPOs can execute fundraising campaigns. While these tools can increase efficiency and personalise donor engagement, they do not remove the legal obligations that apply to direct marketing under POPIA and the Information Regulator’s Guidance Note on Direct Marketing.
 

Section 1 of POPIA defines “direct marketing” to approach a data subject, either in person or by mail or electronic communication, for the direct or indirect purpose of:

  1. promoting or offering to supply, in the ordinary course of business, any goods or services to the data subject; or
  2. requesting the data subject to make a donation of any kind for any reason.

The Guidance Note confirms that ‘electronic communication’ includes messages generated by automated systems. This would include AI-powered email platforms, SMS gateways, or social media chatbots. This means that if an NPO uses AI to send any unsolicited communication requesting donations, section 69 of POPIA applies.

With reference to Unsolicited electronic communication where a data subject is not a customer, the Guidance Note states that:

Requesting Consent: “The first communication which the [NPO] sends to the data subject must be a communication requesting consent of the data subject to market their goods, or services or to request a donation.”

Nature of the Consent: “The [NPO] who wishes to obtain consent of the data subject must obtain the written consent by making use of Form 4 which has been prescribed by the Regulator or in any form which is substantially similar to this Form 4 and in manner that may be expedient, free of charge and readily accessible to the data subject...”

Existing Donor Exception: Contact is allowed without requesting consent if:

  • The details were obtained during a prior transaction or donation;
  • The message relates to similar causes or projects; and
  • An objection opportunity was provided at collection and with each communication.

Conclusion

AI can significantly enhance fundraising efforts, but its automation features make it easier to breach POPIA unintentionally. Every AI-driven communication must be evaluated against the provisions of POPIA, its Regulations and the Guidance Note to ensure that consent, transparency, and objection rights are fully embedded into the process.


  • Important Note: The information contained in this article is general in nature and should not be interpreted or relied upon as legal advice. The information may not be applicable to specific circumstances. Professional assistance should be obtained before acting on any of the information provided here.

Ricardo Wyngaard

The NPO Lawyer | Ricardo Wyngaard Attorneys

Ricardo Wyngaard is passionate about the non-profit sector and has been focusing on non-profit law since 1999. He is a lawyer by profession who has obtained his LLB degree at the University of the Western Cape in South Africa and his LLM degree at the University of Illinois in the USA. He has authored a number of articles and booklets on non-profit law and governance.

Related articles


Jill Ritchie
The 18 UK donor trust representatives (ranging from a CEO of a multi-million pound entity to medium-sized trusts and small family trusts) consulted for the book I wrote, Fundraising from UK Donors…
Ruen Govinder
I registered Hashtag Nonprofit as a cause on ShopDonation and tested their system. Here is what I found.  What is ShopDonation? ShopDonation is a website that uses affiliate marketing, wh…
Jill Ritchie
Love them or hate them, if potential donors (or even existing donors for re-applying) have forms and require them to be completed, this must be adhered to. Application forms can be tedious. However…