What Should Your Nonprofit AI Use Policy Actually Cover?

There is no universal AI policy template that fits every nonprofit. The right policy for a large urban hospital system looks very different from the right policy for a small community organization. What follows is a set of questions and considerations to work through as your leadership, staff, and board shape something that reflects your organization, your values, and the people you serve.
The Risks of AI Use Go Further Than You Think

AI tools, particularly large language models behind tools like ChatGPT, consume significant amounts of energy and water. When an organization’s mission is connected to environmental justice, sustainability, or community wellbeing, there is a real question about whether the tools being adopted are consistent with the values being advanced. That does not mean avoiding AI entirely. It means making deliberate choices and being honest about the tradeoffs.
Does Your Nonprofit Have an AI Use Policy? Nearly Half Don’t.

Nearly half of all nonprofit organizations have no AI governance policy. That number comes from the 2026 Nonprofit AI Adoption Report, a benchmark study of 346 organizations published this past February by Virtuous and Fundraising.AI. Both organizations have a commercial interest in the nonprofit technology space, but their findings are consistent with broader sector research. That gap reflects where most organizations are right now.
The AI Companies Are Talking About the Safety Net. Nonprofits Should Be in That Conversation.

Last week, OpenAI released a policy document titled “Industrial Policy for the Intelligence Age: Ideas to Keep People First.” If you work in the nonprofit sector, it is worth a close read.
The document calls for a public wealth fund to share AI’s economic gains more broadly, fast-response safety net programs to support workers who lose jobs to automation, and investment in job training to help people find their footing as industries change. The document also calls for major investment in the electrical grid to power all of this technology. That will affect communities too, particularly those that host large data centers or deal with rising energy costs. But for this post, we are focusing on the workforce and safety net pieces, because that is where nonprofits are most directly positioned to act.