Artificial intelligence is a present-day reality shaping everything from email automation to grant writing. Yet nearly 3 in 4 nonprofits still lack a formal AI strategy. This absence isn’t due to lack of interest, but often a lack of time, resources, or internal expertise. Nonprofit leaders are focused on mission delivery, not emerging tech governance. Without a clear policy in place, however, organizations risk falling behind or potentially jeopardizing donor and service data.
One of the biggest concerns is data stewardship. AI tools often require access to sensitive information, whether it’s donor profiles, patient data, or beneficiary stories. Without proper guidelines, staff may unknowingly input private or proprietary data into third-party systems, potentially violating privacy agreements or compliance standards. A clear AI policy helps establish guardrails for how data is used, stored, and protected. This measure can help increase donor trust and enhance security.
Beyond data, there’s also a missed opportunity in storytelling and administrative support. AI can assist with grant proposals, social media content, impact reports, and even donor segmentation. But without direction, staff may either misuse the tools or avoid them altogether. A thoughtful policy doesn’t need to be overly technical. It just needs to provide guidance on when, how, and why to use AI tools in a way that aligns with mission, values, and legal obligations. As AI becomes more embedded in nonprofit work, intentionality will separate the organizations using it from those leading with it.
Nonprofit workers are not immune to the same concerns that society is experiencing. In addition to concerns about job displacement, nonprofits are becoming more keenly aware of the problems of bias and inherent flaws in AI that produce misinformation and hallucinations. These concerns are real. However, an AI policy can also help to address these barriers to adoption and trust.
Not all nonprofit professionals are comfortable with technology, and it’s essential to recognize that human-centered skills like empathy, trust-building, and lived experience cannot be replaced by technical tools. When rolling out any new policies related to these tools, it’s important to remind staff of the role of AI. Supporting staff with training and transparency can also increase adoption and strengthen adherence to policies.
For nonprofits that feel left behind, taking the first steps towards establishing an AI policy can alleviate many of the risks that come with a rapidly evolving technology. It also creates a foundation for responsible innovation, ensuring AI supports the mission rather than complicates it.
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