MM: What’s the first thing you asked ChatGPT?

EA: I asked it to summarize a five-page strategy paper on where Microsoft should be investing its engineering resources for products for the nonprofit sector. It takes effort to write five or six pages of content and then at the end, you’re like oh man, now I need to write an executive summary. So I entered a quick prompt to write a short executive summary, and it did. It was brilliant. Then I started playing around with it and asked it do it in the style of Shakespeare.

MM: In essence, it’s given you access to new avenues to be more productive, giving you back time to use elsewhere.

EA: ChatGPT has democratized AI access for all. AI and machine learning have been around for a while, and until recently it’s been esoteric. You needed some input from data scientists, you needed some sophistication and understanding of your data, and guidance for how to extrapolate results. And now with ChatGPT, it’s suddenly become this practical natural language prompt interface, which allowed people to ask anything and everything.

ChatGPT has democratized AI access for all.

It’s been fascinating to see all the different use cases, and now we see this shift from a focus on big, complex problems, which it can do, to suddenly very practical workflow questions that help with everyday tasks.

I need to send an acknowledgement letter to someone and that’s going to take me 15 minutes to write. You know what? I can use ChatGPT and it takes 10 seconds, right? That kind of thing. That shift has been fascinating.

MM: How would you then characterize or define this moment in time for nonprofits?

EA: Two things. One is that this is all real. AI is no longer future tech. Be ready and be aware…it’s not coming. It’s here. It will increasingly be part of our workplace environment, part of how we communicate with each other, and part of how we consume information including in Microsoft 365 Copilot. And nonprofits play a crucial role in asking hard questions of companies like Microsoft to ensure the responsible use of AI.

AI is no longer future tech. Be ready and be aware…it’s not coming. It’s here.

How are these models built? Is there transparency built in? Is there fairness built in? Is there awareness of the inherent biases that can get built into some of these models and more than some industries? I see nonprofits really holding the line and these are some of the first questions I get in any of the engagements I have when talking with nonprofit leaders. Responsible use is on top of everyone’s minds.

Second, let’s recognize what a massive, disruptive change AI represents. We’ve had a couple moments like this as computer technology has advanced. The adoption of smart mobile devices and the shift to the cloud are perhaps the other disruptive changes anywhere near this scale. Cloud technology allowed nonprofits to leapfrog into modern technology. We saw the sector shift to cloud from on-premises technology with aging servers sitting under desks or in data closets here, there and everywhere. Cloud is a completely different paradigm and offers a completely different model when modernizing technology among nonprofits.

AI is similar in terms of how disruptive it will be. It will quickly obviate some traditional approaches. It will take traditional IT spend and redirect it into new areas that drive efficiency, drive insights that drive impact, and therefore drive better fundraising. It’s this moment that I hope will cause a lot of organizations to think hard about their next technology investment because the next investment should probably also include capacity building. Nonprofits should plan how to build digital literacy amongst organization staff when engaging with technology like Open AI and ChatGPT. This is a key investment area for Microsoft, and we offer several programs and services.

It’s this moment that I hope will cause a lot of organizations to think hard about their next technology investment because the next investment should probably also include capacity building. Nonprofits should plan how to build digital literacy amongst organization staff when engaging with technology like Open AI and ChatGPT.

MM: So, one of the things I think is fascinating, which you mentioned, is we have so many organizations in the nonprofit sector that are not even yet in the cloud, right? We’re talking about the next chapter beyond the cloud.

EA: Yes, there is some fear of the new. I think you throw the question back, “Do you use a browser?” If you use a browser, you can just as easily use ChatGPT — its browser interface provides the ability to enter a natural language prompt in any of more than 50 languages, and enter into a conversation or analysis — it’s right there without any change in your technology footprint. If you’re unsure what it can do or how it can help you with a specific problem, you need but to ask it.

Building digital skills and having an awareness of modern digital technology, the importance of understanding what data exists in the ecosystem, the importance of being able to communicate impact back to donors, and being able to understand the efficacy of interventions a nonprofit organization is driving — all of that has been growing for years.

With this shift to AI, we’re seeing a corresponding shift among donors who are more willing to give to organizations who are able to show how donations were used specifically to drive impact, and tell those individual stories. That is where I think donors are going and they’re demanding more information and accountability from the nonprofits that they are choosing to support. And, from a nonprofit perspective, it’s becoming easier to aggregate that data and tell the story through tools like Open AI.

With this shift to AI, we’re seeing a corresponding shift among donors who are more willing to give to organizations who are able to show how donations were used specifically to drive impact, and tell those individual stories.

MM: What are some of the, you know, clear examples you can share of organizations really capitalizing on AI today?

EA: So for us, I’ve been counselling organizations and counselling the team here at Microsoft to first and foremost focus on the practical.

For years, Microsoft has engaged in very complex problems. We will continue to engage in those complex problems and have things like the planetary computer and our investments in sustainability and all of our AI investments around that will 100% continue.

But, we need to also focus on practical challenges that make nonprofits more efficient and more impactful. What does OpenAI mean to you if you’re a donor officer, if you’re a program officer, if you’re trying to collect data in a community? How can these tools help you? And so again, back to the Bing AI example, without any training, any configuration, or any additional technology investment, you can go into Bing and enter a prompt to generate an appeal letter as, say, an executive director of a food bank for a canned food drive. It’s as simple as writing a natural language sentence. It will provide an appeal letter for you that you can use as a starting point.

We’re also looking at how we can use it to look at fundraising trends. Where have your donors given in the past? How much have they given? To which causes are they aligned? What campaigns appeal to them? Using OpenAI, we are able to determine donor likelihood to give and load that donor propensity score into our Fundraising & Engagement CRM to help donor offers understand who their influencers are and help line up effective campaigns, diversify funding, and grow the donor base. With the conversational tools in ChatGPT, it also really helps engage with your donors in a more personalized way.

MM: So, when we’re talking about all of these wonderful things, I mean, there’s just, like, a cornucopia of ideas that are practical and tactical, which is awesome.

EA: And yeah, I have a list as long as my arm of requests and ideas that come in — probably six new ones every day! It’s amazing to see the engagement from so many nonprofits.

MM: When you’re presenting this plethora of ideas at places like the Nonprofit Technology Conference (NTC)  what’s the reaction you’re receiving from the nonprofit community when you’re presenting what’s possible today in the Microsoft Cloud for Nonprofit (MC4N)? Are they freaking out with excitement? Are they a little bit anxious about all this new tech that’s being presented to them as democratized as it is? It’s still new and new can be a challenge.

EA: Yes and AI as we’ve known it can be daunting. But when you showcase how AI can provide a synopsis of data and analysis, people get excited.

Many of the questions I get are about responsible AI. People are really curious about the technology and in this sector, especially curious about how companies like Microsoft are ensuring we do everything we can to protect the security and the privacy of vulnerable populations while we train these models. Microsoft just released a new report Governing AI: A Blueprint for the Future with a five-point blueprint for governing AI. As Brad Smith, Microsoft Vice Chair and President, reiterated in the whitepaper’s foreword, AI offers even more potential for the good of humanity than any other invention. But with that potential comes very difficult questions that require discussion and action.

It’s really important for Microsoft to remember we are moving so much faster than the market. So fast that I joke that by going to industry conferences like NTC or EFG for a few days I probably miss four new announcements getting rolled out by the company. It’s moving fast even for those of us at Microsoft. It’s a big pivot for the company and we are all in. I’ve never seen anything like this with every department, every engineer, and every person in the company is really rallying around this AI moment.

And so much of this has to include how we bring people along and not just investing in the technology itself, the models and all the cool things that you can build and prompt libraries and things that we can generate. But how do you use it? How do you train your staff? How do you build the digital literacy within your organization and across your partners? How do you talk to your constituents about it? How do you talk to your clients about it?

As I mentioned earlier, we need to pay equal attention to that and Microsoft is making significant investments not just in the technology side, but also in the capacity building side to make sure that we’ve got the right programs to train the staff of nonprofits, educate the community at large, and encourage equitable access to this groundbreaking technology.

MM: I’m assuming there’s more to come on that front, Erik Sounds like a rollout of training and opportunities?

EA: Yes, just a few weeks ago in mid-May, we announced a set of new powerful AI tools around marketing and fundraising because its core to almost every nonprofit.

MM: Microsoft Tech for Social Impact (TSI) was born in 2017. What’s one of the key things you want nonprofits to better understand about who TSI is and what its role is? Or, are there any misconceptions you want to take this opportunity to correct?

EA: At Microsoft, philanthropy has been part of our DNA throughout our 40 plus year history. To build on our commitment of inclusive economic opportunity, we wanted to ensure that our technology was affordable and relevant to all nonprofits.

And so, what this team is—it’s a little mini-Microsoft. We have a dedicated engineering team. We have a dedicated sales team and technical experts that are versed in the nonprofit sector. We have a dedicated marketing team. We have a dedicated partner ecosystem team. And even though we sit inside Microsoft Philanthropies, we have our own philanthropists on the team as we engage around software grants and services. We operate with the mission that we want to empower every nonprofit organization and international development organization with modern digital technology so that they can achieve more.

Our belief is that modern technology is a powerful tool that can help nonprofits execute on their missions and drive impact. Tech for Social Impact is the Microsoft team that helps nonprofits achieve their missions. We do that by combining philanthropy — now over $3.5 billion in philanthropy per year to over 300,000 organizations – with ethical pricing. And of that $3.5 billion, approximately $1.1 billion represents our software donations. We combine those donations with heavily discounted pricing across the entire Microsoft Cloud, and we then create finished Microsoft products tailor-made for specific nonprofit workflows.

We don’t talk about TSI enough. We probably could never talk about it enough.  I don’t know of another private sector company—forget just technology companies—that’s donating this much to the sector. But it’s not our story. It’s the story of all the nonprofits that we work with, and we’re only successful if they’re successful.

It’s the story of all the nonprofits that we work with, and we’re only successful if they’re successful.

And, what I used to talk quite a bit about is, in a world where standard corporate social responsibility is not enough, corporations, they fall temporarily in love with the non-profit. You get a little bit of volunteer time; you maybe get some cash; you maybe get a proof of concept and application or something, and then the corporation moves on to the next organization, and the next organization, and so on. That model is useful. It does help, but it doesn’t really move the needle. What I needed when I was a CIO in the sector, and what I hear from my former peers and people that I talk to, is that they want true partnership. They want to know the company they invest in will be there when they need them.

They want Microsoft to really lean in with resources and with a sustainable model we will stand behind and that they can trust is going to be there for years to come. The unfortunate reality is that over the last year we have seen some private sector tech companies pull back and realign their commitment to the sector. Organizations that have traditionally been deep partners with the nonprofit sector have changed their models and aren’t investing as much, or have changed their nonprofit teams, or even eliminated their nonprofit teams.

They want Microsoft to really lean in with resources and with a sustainable model we will stand behind and that they can trust is going to be there for years to come.

Microsoft is leaning in, we’re investing in innovation, adding resources, and adding partners. In times like this, with strong economic headwinds, nonprofits need healthy corporate partnership even more. We believe it’s our responsibility to do more in public/private partnership, not less.

MM: One of my favourite things TSI has done lately from a communications perspective is how you’ve framed the Microsoft Cloud for Nonprofit as one organization, one mission, and one platform. When we talk about platform, we know in the tech world what that means. But, when we speak with nonprofits, what is the value you want them to understand in that message?

EA: The way to think about Microsoft Cloud for Nonprofit is that it represents the entire Microsoft Cloud, plus all the configurations and products we’ve purpose-built for specific nonprofit workflows.

You get all of the productivity software in Microsoft 365 and Office, all the infrastructure and advanced computing solutions we have in Azure, all the business applications and low code, no code solutions we have in Dynamics and Power Platform —all of that works together.  We then layer in specific products that support fundraising, marketing, analytics, and program delivery. While it all works together, we also believe in interoperability and open architecture. And, we don’t expect that everybody is completely on Microsoft software. We would love it, but that’s not the reality.

But where you do use Microsoft product, because of how we have architected the three clouds between Modern Work, Azure, and Dynamics, the way Microsoft Graph and Dataverse work underneath as data layers, and the way our nonprofit cloud specific technology works, you can walk a persona through a workflow where you’re using Outlook and Teams and it seamlessly integrates with Fundraising and Engagement. The architecture is modular and designed to integrate with other Microsoft products and other nonprofit-specific products in common use in the ecosystem.

Microsoft is leaning in, we’re investing in innovation, adding resources, and adding partners. In times like this, with strong economic headwinds, nonprofits need healthy corporate partnership even more. We believe it’s our responsibility to do more in public/private partnership, not less.

If you just want one or two of those solutions, you can. But, if you want to use multiple solutions, we take care of the integration for you and the data flows because it is all one platform. So, the power is, if you’re building on Fundraising and Engagement, you can also tap into the full power of the Microsoft Cloud — how it already ties into the productivity software you’re using with Outlook and what suddenly becomes available in Teams with Viva Sales configured for donor officers. There are so many possibilities because it is a single platform solution are really interesting.

So, the power is, if you’re building on Fundraising and Engagement, you can also tap into the full power of the Microsoft Cloud.

But, it does take work and it does take understanding how those pieces should be configured for your specific scenarios. We have the training, the staff, and the partners that can help any organization anywhere.

MM: I think it’s a very powerful expression of what can be a very complex idea and there is a home for everything if you so choose. And, to me, that’s really the potential of Microsoft Cloud for Nonprofit and its where we get excited as partners. And I know organizations get excited because all of a sudden they can start to resolve some of those most common challenges involving disparate, disconnected point solutions.

EA: And data interoperability, right? We take pains not to be a platform on an island; that’s not the approach at all. We’re happiest if we’re actually open and building integration with other tools and helping organizations aggregate their data and drive insights on the data that they already have. That’s exciting for us. That’s the starting point for so many organizations I’m privileged to work with.

MM: Fast forward a year from now. What will we be talking about when it comes to innovation for nonprofits?

EA: So, I’ll reflect on the positive side and then maybe on the threat side. So, on the positive side, back to AI, I think AI is going to be more and more part of how we all do our day to day work. AI is having a bit of a moment right now, and the hype is pretty high. That’ll come down like it normally does but it will be normalized as a part of our normal workday. We are already working to include AI in all of Microsoft’s products. Tools everybody’s using today including Outlook, Teams, Excel, Word—all of that is going to be AI-enabled.

But in short order, on the threat side, the ability that some of these tools afford to bolster misinformation campaigns or do social engineering for cyber attacks will increase the threats nonprofits face. There are already sites that allow one to mimic voices, video, and images.

MM: I did have one last one actually. I’d love your perspective on the competition for the discretionary dollar of the consumer who can choose to buy that Netflix subscription or give monthly to a charity. How does technology like Microsoft Cloud for Nonprofit help nonprofits compete for wallet share?

EA: I think you’re spot on in terms of how the whole nature of giving is changing and evolving toward subscription models. We have a whole new generation of donors that are much more comfortable having subscriptions as part of their life, whether it’s for entertainment, groceries, or causes they care about.

And so, thinking about how you shift your fundraising off of some of the traditional models into this new model does mean you need to have updated information about who your donors are, who your audiences are, how they’re responding, and who your influencers are among your donor base.

It’s much more about individualized donors. It’s probably smaller donations. And ideally it’s recurring donations. Nonprofits need the systems, the technology, and the campaign intelligence to organize around that. You need the marketing capabilities, both in terms of staff and expertise, and in terms of the tooling to align around it.