Due Diligence: Disinformation, AI and the Charitable Landscape in 2025

The new year is often a time for resolutions. I suggest it is also a time to remain diligent in our efforts to protect and enhance our shared impulse to help others. Disinformation presents a significant challenge to the world of philanthropy. Donors, advisors, financial institutions, and nonprofits are responding by growing their awareness and adoption of AI and other digital resources to combat these threats and promote greater transparency, security and accountability. Together, we can continue to make smart decisions to give efficiently and effectively.

As someone with an insider’s perspective on these topics, I am keenly aware that technology—including the prevalence of AI models, products and applications—provides possibilities and pitfalls in equal measures. At NPT, our IT and cybersecurity teams are continually focused on monitoring our technology resources and how AI developments are affecting various tech environments. As you refine your 2025 giving plan with your clients, please keep the following in mind.

The Growing Threat of Disinformation

Disinformation is more than false information; it’s a deliberate effort to mislead. This poses unique challenges for the philanthropic sector. False narratives about nonprofits or causes can undermine donor trust, creating skepticism and “paralysis by analysis.” Nonprofits, often with limited resources, are particularly vulnerable, making it harder for them to counter misinformation or safeguard their reputations.

For donors, the risks are clear: disinformation can lead to misplaced trust, reduced giving, or support for causes that don’t align with personal values. Combating this requires critical thinking and proactive steps to verify information before committing funds.

The Role of AI in Protecting Philanthropy

Given that philanthropists, foundations, and high-net-worth individuals are often in the spotlight, they can become prime targets for disinformation campaigns designed to damage reputations, disrupt operations, or manipulate public opinion. Artificial intelligence is becoming a key ally in addressing these challenges. Tools powered by AI can analyze vast amounts of data—news, social media, and transactions—to identify potential disinformation campaigns or fraudulent activities. Here’s how AI is making an impact:

For Donors and Advisors: AI tools can assess the credibility of organizations and flag disinformation patterns. These insights help donors make more informed decisions and advisors guide their clients effectively.

• Practical Tip: Use AI-enhanced research tools to verify organizations’ track records and cross-check their public claims with independent databases like Charity Navigator or Guidestar.

For Nonprofits: Machine learning can monitor online mentions and public sentiment, allowing nonprofits to address inaccuracies quickly. AI can also enhance transparency by streamlining impact reporting.

• Practical Tip: Use tools like Mention or Google Alerts to monitor online mentions and public sentiment about your organization in real time. For addressing gaps in impact reporting, platforms like Microsoft Power BI can help analyze data and create clear, compelling visualizations that demonstrate results and build donor confidence.

For Financial Institutions: AI-driven systems are improving due diligence processes, ensuring that charitable funds are used appropriately and securely.

• Practical Tip: Adopt AI processes to flag suspicious activity or patterns in financial data that suggest irregularities. Use predictive models to identify potential risks before funds are disbursed.

What Can Donors Do?

While technology helps, a thoughtful approach remains essential. Here’s how donors can protect their impact:

• Engage in Dialogue: Build relationships with nonprofit leaders and ask direct questions about their goals, challenges, and resource needs. This human interaction helps uncover insights that data alone might miss.
  
• Dive Deeper into Governance: Review an organization’s annual reports, financial statements, and governance structures to ensure they are operating transparently and ethically. Understanding how a nonprofit allocates funds can help you identify causes that align with your values.
  
• Support Capacity Building: Recognize that nonprofits often face resource constraints, especially in areas like cybersecurity and misinformation mitigation. Consider directing part of your giving toward improving their operational infrastructure, including technology and staff training.
  
• Encourage Cross-Sector Collaboration: Collaborate with other donors, advisors, or philanthropic networks to pool knowledge and resources. Collective efforts can amplify the ability to identify and combat disinformation while sharing best practices for impactful giving.
  
• Advocate for Digital Literacy: Support initiatives that educate the public—and nonprofit teams—about identifying and resisting disinformation. Empowering communities with digital literacy skills strengthens the entire philanthropic ecosystem.

By combining AI tools with critical thinking and proactive strategies, donors, nonprofits and institutions can protect their impact and foster trust in the philanthropic ecosystem.

Moving Forward

Philanthropy thrives on trust and intentionality. In 2025, embracing a combination of critical thinking, due diligence and AI-powered tools can help donors navigate the complex digital landscape. Together, we can ensure that our shared impulse to help remains focused, impactful and protected from disinformation.