When impact meets integrity: not-for-profits rethink data and AI

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Walk into almost any Canadian charity today and you’ll find a familiar scene: teams comparing spreadsheets, donor databases, and program reports, all trying to answer one question: 

Are we making a difference?

The answer increasingly depends on data. Digital transformation has reached the not-for-profit world, but its purpose looks different here. For these organizations, innovation has just as much to do with accountability as scale or automation. 

Technology is showing where resources go, how impact is measured, and why people should keep believing in their mission.

Ontario Nonprofit Network’s The Status of Canadian Fundraising 2025 found that 83% of nonprofit sector respondents are already using AI, yet few are applying it beyond basic efficiency gains. 

The next step, leaders say, is building trust into every data decision, from how personal information is stored to how algorithms shape outreach and fundraising strategy.

At the Canadian Cancer Society, Chief Information Officer Lesa O’Brien has seen how that shift changes an entire organization. 

“People expect you to deliver amazing secure experiences,” she explained.

“I’ve seen that shift and change with donor behaviour, but also with cybersecurity and the threats that come out. You really have to make sure that people trust your brand and that they’re going to have a great experience no matter what.”

That expectation has become the new benchmark for trust in the not-for-profit sector. 

Every interaction, whether a donation, a volunteer sign-up, or a call for support, relies on confidence that personal information will be protected and used responsibly. 

Meeting that standard demands clear data practices and systems that give everyone a consistent, accurate view of the people they serve.

Digital systems as a test of trust

O’Brien has been at the helm of consolidating fragmented systems into what she calls “a 360-degree view of our constituents.” 

“To be able to bring that data together so that everybody understands who that constituent is,” she explained, “that in and of itself is a benefit.

“The security and [control of] who has access to what data, and to make sure that we as a technology team had a full view of what data we had, where it exists, why it exists, who has access to it, is critical.”

This kind of integration is essential infrastructure for modern nonprofits. 

The move toward centralized, secure platforms means organizations can personalize communication, analyze giving trends, and measure program outcomes without compromising confidentiality. When donor and service data exist in one system, every interaction becomes traceable, verifiable, and aligned to mission impact.

That’s increasingly important as the federal government pushes the sector toward digitization. 

For example, new provisions in Canada’s 2025 federal budget allow organizations to issue simplified electronic donation receipts. This is another step toward streamlining compliance and engagement. 

Digitization also raises expectations. 

Once financial records and constituent information are online, accountability is built into the architecture.

Making AI accountable to the mission

For many charities, AI is the next frontier in their accountability journey. 

Predictive analytics and generative tools can help optimize campaigns and streamline operations, but the ethical implications are profound, especially for organizations serving vulnerable populations.

At the Canadian Cancer Society, O’Brien said her team has been deliberate in how they approach AI. 

“We’ve created an AI policy, and we’ve done some training around that as well, but we’re still in the early stages of developing an AI governance board and determining what use cases we should be focused on.”

The organization currently uses predictive models to support fundraising growth, but ultimately, it’s about augmenting what’s already there.

“There has to always be a human in the loop, for sure.”

This approach is quickly becoming a benchmark for responsible AI in the not-for-profit space. It ensures that machine learning remains a tool, not a decision-maker, in contexts where sensitivity, empathy, and accuracy carry real consequences. In healthcare charities, for example, where systems hold deeply personal data, the stakes are even higher.

A recent analysis by The Philanthropist warned that Canada’s not-for-profit sector remains a “soft target” for cyberattacks, given the mix of valuable personal data and limited cybersecurity capacity. 

They cite an Imagine Canada report that found “a third of large organizations and a quarter of medium-sized organizations reported cybersecurity incidents in 2021.” 

The report also found that 16% of small organizations experienced a cybersecurity incident in 2021.

The Philanthropist called for stronger investment in digital resilience, arguing that public trust depends on both technical and ethical safeguards.

“Not only would a cyberattack be devastating to those who rely on your services; it would undermine your charity’s reputation and public trust,” they explained.

How integrity became the new measure of progress

The accountability shift reshaping the sector represents a fundamental change in how technology leadership is defined. 

CIOs are now stewards of ethical innovation, responsible for ensuring that every technological advancement aligns with the organization’s values and its social contract with the public.

For O’Brien and other not-for-profit technology leaders, that means designing systems that treat privacy, consent, and transparency as core features, not afterthoughts. It means embedding governance into every stage of technology adoption, from vendor selection to AI experimentation. 

And it means recognizing that trust is earned through measurable integrity.

Every data model, algorithm, and engagement tool must strengthen relationships with donors, volunteers, and beneficiaries, not simply track or predict them.

Impact meets accountability

This new standard of digital accountability is already changing how Canadian charities operate. 

Those investing in secure, transparent data ecosystems are redefining credibility. When donors can see where their contributions go, and when beneficiaries can trust that their information is handled responsibly, technology becomes an engine for legitimacy.

For Canada’s innovation economy, that mindset offers a broader lesson. 

The not-for-profit sector’s cautious, values-led approach to digital transformation is a reminder that progress and principle can coexist. As organizations across industries navigate the ethics of AI, these leaders are showing that the future of innovation depends as much on governance as it does on capability.

Final shots

• 83% of Canadian not-for-profits use AI, but few have governance frameworks in place.
• Data consolidation enables transparency, measurement, and constituent trust.
• Responsible AI requires formal policies, oversight, and a human-in-the-loop model.
• Cybersecurity and ethical innovation are now inseparable in the social impact sector.
• The next stage of digital transformation is defined by accountability, not adoption.