Nonprofit
Helping Your Nonprofit Use AI Responsibly
Most nonprofit organizations are already exploring how artificial intelligence can improve efficiency and support their work. The challenge is no longer whether these tools should be used, but how organizations can use them thoughtfully and responsibly.
Establishing an AI-use policy gives leaders an opportunity to define expectations, strengthen oversight, and ensure technology remains aligned with the organization’s mission and values.
AI Use is Quickly Expanding
Many nonprofit employees already use AI tools in their daily work, whether they realize it or not. Tasks that once required hours of manual effort can now be completed in minutes. While these tools can be valuable resources, they also introduce important questions surrounding data privacy, security, accuracy, and accountability.
Some examples of AI tools include:
- Drafting emails, grant applications, and social media content
- Summarizing reports and meeting notes
- Researching trends and compiling information
- Assisting with budgeting and forecasting
- Analyzing donor, volunteer, or program data
Protecting Confidential Information
Nonprofits regularly work with sensitive information, including donor records, employee data, financial information, and client or program participant records.
Without clear guidelines, employees may unintentionally enter confidential information into publicly available AI tools. Once shared, that information may no longer be fully under the organization’s control.
An AI-use policy should establish clear rules regarding:
- The types of tools employees are permitted to use
- The information that may and may not be entered into those tools
- Expectations surrounding privacy, security, and record retention
- Procedures for reviewing AI-generated content before publication
Establishing Accountability and Oversight
AI should support decision-making rather than replace it. Human oversight remains essential, particularly when organizations make decisions related to finances, employment, fundraising, and strategic planning.
Nonprofit leaders should also consider whether their existing policies adequately address the use of emerging technologies. Board members and executive leadership teams can play an important role by setting expectations, monitoring compliance, and ensuring that any AI use aligns with the organization’s values and mission.
Staying Informed on Evolving Regulations
The legal landscape surrounding AI continues to evolve rapidly.
In Illinois, lawmakers recently enacted requirements governing certain uses of artificial intelligence in employment-related decisions. Depending on how AI is used, employers may be required to provide notice to employees and comply with additional restrictions and reporting requirements.
As additional state and federal guidance emerges, nonprofit organizations will need to stay informed and adapt their policies accordingly.
Building a Thoughtful Approach
An AI-use policy does not need to be complicated. In many cases, a straightforward policy that establishes roles, responsibilities, limitations, and review procedures can significantly reduce risk while encouraging responsible innovation.
Like any technology, AI can be an incredibly valuable tool when used thoughtfully and strategically.
At Dugan + Lopatka, we work closely with nonprofit leaders to help them navigate evolving regulations, strengthen internal controls, and address emerging risks. As AI becomes a larger part of everyday operations, now is an excellent time to establish clear expectations and create a framework that supports your organization’s long-term success.
Contact Dugan + Lopatka to learn more.