Nonprofits are under mounting financial pressure. From funding gaps to rising supply costs, finance teams are operating under a magnifying glass to plan, manage, and stay mission-focused with diminishing resources. To help streamline and future-proof operations, many are turning to innovative technology such as artificial intelligence (AI). AI can be a practical way for finance teams to streamline workflows, reduce manual tasks, and gain better visibility and insights. That’s why nearly 40% of nonprofit and public sector organizations in our 2025 Economic Sentiment survey said they plan to invest in AI within the next year.
AvidXchange’s AI-enhanced accounts payable (AP) automation solution helps nonprofits operate more efficiently to maximize program impact. In this blog, we’ll deep dive into AvidXchange’s AI-enhanced solutions and the different ways our software can help nonprofits stay mission-focused while future-proofing their financial operations.
Enhance Your Mission by Embracing Efficiency
When running a nonprofit, every minute matters when you’re driving impact. Manual AP tasks not only slow your organization down, they can also take valuable time away from your mission. With AvidXchange, you can automate your end-to-end AP process while our AI-enhanced solutions can maximize efficiency and accuracy every step of the way.
AI Approval Agent
Our AI Approval Agent uses historical data to estimate how likely an invoice is to be approved while providing real-time insights as invoices move through your AP process. You get clear, intelligent suggestions while you and your team can keep full control over final decisions.
Invoice Capture Enhancements
Our Invoice Capture feature uses AI to learn your invoice patterns, reduce manual input, and speed up approvals. It gets smarter over time, helping you move invoices through the process faster and more efficiently with every transaction.
AI Purchase Order Matching Agent
Our AI Purchase Order Matching Agent streamlines one of the most manual parts of AP—matching line items from invoices to purchase orders. It automatically matches details for you, improving accuracy and accelerating approvals.
By leveraging AI-enhanced AP automation software, your nonprofit gains greater accuracy, improved visibility for compliance, increased ROI, and a smoother workflow from start to finish. That means less time spent on manual work and more time focused on what matters most to your organization.
Eliminate Paper to Make Every Dollar Go Further
It’s no secret nonprofits are facing financial hurdles within the current economic climate. With 60% of nonprofit and public sector organizations expecting economic uncertainty to last to years or more, according to our 2025 Economic Sentiment survey, now can be the perfect time to rethink how resources are managed.
How long do you expect the current period of economic uncertainty to last?
A long-term issue — likely to continue for the next 1–2 years or more
A short-term challenge —likely to stabilize within the next 6–12 months
A temporary disruption —expected to resolve in less than 6 months
Unsure
The first step to re-evaluating costs? Start by ditching paper.
The USPS recently increased mailing prices by 7.4 percent, making paper invoices and checks even more expensive to manage. And not to mention, processing an invoice costs an average of $6.40 compared to $1.45 with automation.
AI-enhanced AP automation software helps reduce these hard costs, as well as the soft costs associated with the manual tasks of printing, stuffing envelopes, and mailing. Overall, automation can help your organization stay efficient and agile, to help make every dollar go further toward your mission.
Help Protect Every Donor Dollar with a Digitized AP Process
Not only are paper-based processes inefficient and costly, they can put your organization at greater risk for fraud. Even the White House is phasing out paper checks by September 2025 due to the rise in check fraud since the pandemic. For nonprofits, a digitized AP process can be essential for maximizing and protecting every donor dollar.
In fact, our 2025 Economic Sentiment survey revealed 54% of nonprofit and public sector organizations plan to invest in data security and compliance tools within the next year. AvidXchange’s AI-enhanced software supports that goal with its design to detect potential fraud, flag irregular invoice patterns, and validate data against historical trends. Our software scans and extracts invoice details quickly, with a complete digital footprint and easy-to-view dashboards to help simplify audits and ensure compliance at every step.
And with a 99.2% accuracy rate backed by a continuously improving AI-enhanced model, you gain a secure, reliable AP process that can reduce financial risk and safeguard valuable information.
What types of technology, if at all, is your finance department focusing investment on over the next 12 months?
Help Retain and Attract Top Talent with Industry-Leading Tech
Nonprofit organizations need more than mission alone to attract and retain top talent. Today’s workforce is evolving, and mission-driven finance leaders are feeling the pressure. Our 2025 Economic Sentiment survey data shows:
- 65% reported they’re facing employee retention challenges
- 61% say they’ve had difficulty hiring for specialized roles
- 52% are seeing shifts in talent expectations for more flexibility and remote positions
AI-enhanced AP automation software can play a key role in building a more modern, engaging workplace for your finance team. By eliminating repetitive tasks like invoice processing and data entry, AP automation frees up time for staff to refocus their efforts on donor engagement and community impact while improving job satisfaction and reducing burnout.
Adopting AI-enhanced software also signals a forward-thinking culture that can be appealing to talent looking for purpose-driven careers with organizations that utilize modern tools. Plus, automation enables flexible, remote-friendly workflows to support a greater work-life balance.
Stay Mission-Ready with a Future-Focused Approach
AI-enhanced AP automation software equips nonprofits to work smarter, adapt quickly, and stay focused on what matters most—their mission. By minimizing manual tasks, improving accuracy, and increasing visibility, your organization is better prepared to navigate change with confidence. Our platform integrates with over 240 purpose-built ERP systems, so you can likely streamline AP without disrupting the tools you already use.
With the right technology and trusted support, you’re not just keeping up, you’re preparing for whatever comes next. AvidXchange providesbacked by 25 years of expertise. Learn how AvidXchange can help your nonprofit stay future-ready by visiting our AP for Nonprofits page.