The bubble surrounding generative AI might be on the brink of bursting, yet the technology continues to present a transformative opportunity for organizations worldwide. Recent statistics reveal that nonprofit entities are still striving to adopt the AI trend.

A significant number of nonprofits are keen on AI

In relation to other technology-centric industries, the nonprofit sector has shown more reluctance in adopting AI and its promise of enhanced efficiency without human oversight. Typically, nonprofits have been slower to deploy AI as an all-encompassing tool or to weave it deeply into their organizational framework, keeping AI distinct from their public functions.

Nevertheless, as the technology has evolved and responded to certain privacy and regulatory concerns, leaders within nonprofits are becoming more receptive to the prospective advantages of AI. It may soon be deemed indispensable.

Alongside historical challenges related to funding and infrastructure, U.S. nonprofits confront fresh threats to federal funding during the Trump administration. Federal authorities have been intimidating organizations and questioning their intentions under an “anti-woke” agenda, which now encompasses AI advancements. In August, President Donald Trump enacted an executive order mandating agencies to alter grant-making procedures for 501(c)(3) organizations, enabling funding termination if it fails to “promote the national interest.”

At the same time, a report by Candid, a global nonprofit fundraising platform, anticipated in 2025, revealed that 65 percent of nonprofits are interested in AI. The majority of these organizations reported possessing a “beginner familiarity” with the technology. A recent survey conducted by social good software provider Bonterra discovered that more than half of its partner nonprofits have already adopted AI in some capacity, with most indicating a desire to utilize it shortly.

Tech nonprofit organization Fast Forward, backed by Google.org, surveyed over 200 nonprofits that had already embraced AI. The findings showed that smaller organizations (with fewer than 10 employees) were leveraging the technology the most, starting with their own chatbots and custom LLMs trained on publicly available data. Most had applied it solely in internal operations and had been using AI for less than a year.

Guidance on AI safety and responsibility remains a significant challenge

Despite the increase in interest and adoption, AI developers and tech benefactors have not kept up with the requirements of nonprofits. Organizations face considerable deficiencies in training, resources, and policies that impede AI’s efficacy in their operations. Candid found that merely 9 percent of nonprofits feel prepared to adopt AI responsibly, and one-third were unable to articulate a connection between AI technology and their mission.

Half of the organizations expressed concerns that embracing AI could exacerbate inequalities they seek to mitigate, particularly among those serving BIPOC communities and individuals with disabilities. “Individuals are eager to explore and comprehend,” noted Candid in its findings, “but the support systems have not caught up.”

These worries were echoed among nonprofits that have already integrated AI. Bonterra’s survey indicated that nearly all nonprofits were apprehensive about how AI firms could utilize their data. One-third of nonprofits stated that unresolved issues about bias, privacy, and security are actively restricting their AI deployment.

“With the rise of AI adoption, it is vital for organizations to keep people as the priority over data points. AI should be utilized to bolster a nonprofit’s mission, not the reverse. For nonprofits and funders, this necessitates that AI adoption embraces a people-first outlook rooted in transparency, accountability, and integrity,” Bonterra CEO Scott Brighton mentioned to Mashable. “Social good aims to implement AI ethically, necessitating guidance on data collection approaches, ensuring human oversight over all decisions, and safeguarding private information.”

Surveys indicate that very few nonprofits maintain internal AI training budgets, policies, or guidance for AI application, frequently due to insufficient infrastructure. Nonprofits also raised concerns regarding the potential ramifications of automation on their operations, elevated costs, and the scarcity of training resources for already overwhelmed staff—issues that have persisted for years as AI has gained widespread use.

“The truth is that nonprofits can only act according to what funders permit within their financial parameters,” clarified Fast Forward co-founder Shannon Farley. “Funders hold a crucial role in ensuring that nonprofits receive the funding necessary to prioritize AI equity and accountability.”

Especially at the grassroots level, nonprofits continue to approach AI cautiously and defer to their communities in its application. Fast Forward discovered that 70 percent of nonprofits “powered” by AI utilized community feedback to develop their AI tools and policies while government regulation lags.

“Ultimately, nonprofits do not focus on AI; they focus on impact,” stated Fast Forward co-founder Kevin Barenblat. “Nonprofits have consistently sought ways to achieve more with less—AI is revealing the means to accomplish that.”