Can AI Help Nonprofits Do More with Less?

Why It Matters

AI offers nonprofits a path to increase impact while controlling costs, but without adequate resources, training, and ethical safeguards, the sector risks misusing the technology and widening the very inequities it seeks to address. Effective, responsible AI adoption could become a competitive advantage and a critical factor in sustaining nonprofit services under tightening fiscal and regulatory pressures.

Summary

A 2025 Candid report found that 65% of U.S. nonprofits are interested in AI, though most are only at a beginner level, and a Bonterra survey shows over half of its partner nonprofits have already deployed AI, especially small organizations using chatbots and custom LLMs for internal tasks. Adoption is accelerating, but only 9% feel ready to use AI responsibly, with many lacking policies, training budgets, and clear links between AI tools and mission outcomes. Concerns about bias, privacy, data security, and the potential to exacerbate inequities remain prominent, and nonprofits cite funding constraints and limited guidance from tech providers as major barriers. Fast Forward’s study of 200 AI‑using nonprofits highlights that community feedback drives most AI implementations, underscoring a people‑first approach amid lagging regulation.