A Guide for Generative AI Use Policies for Nonprofits

Generative AI is revolutionizing how organizations operate, and nonprofits are no exception. From drafting grant proposals to streamlining day-to-day operations, tools like ChatGPT and Claude offer incredible potential. But with these opportunities come challenges, data security, ethical considerations, and the need for ongoing learning.

In this rapidly evolving field, no single organization or individual can claim to be the expert. That’s why a strong Generative AI Policy needs a commitment to co-learning, shared clarity, and steady adaptation as the technology develops. This guide walks you through the key elements of a robust policy and includes a free starter template to help your nonprofit build responsible guardrails that align with your mission and values.

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What Is Generative AI? Why Should Nonprofits Care?

Generative AI refers to tools that can create new content, like text, images, audio, video, or code, in response to a prompt. Some people use it directly (ChatGPT, Claude, Copilot). Others encounter it indirectly because it’s already embedded in everyday platforms like email, docs, CRMs, and donor tools.

For nonprofits, this matters for three big reasons:

1. Healthier staff and more sustainable leadership Done well, “efficiency” should not mean doing more work with fewer people. It should mean reducing unnecessary load, protecting focus, and helping leaders and teams stay well enough to keep leading. When busywork drops, staff can spend more time on the work that actually requires human judgment, relationship, and care.

   
   

2. Better services and stronger mission delivery Generative AI can support the work behind the work, like drafting and editing, summarizing long material, translating information into plain language, and creating first-pass outlines or templates. Used responsibly, it can improve quality and consistency while freeing time for higher-impact service.

   
   

3. Real risk if guardrails don’t exist Without shared guidance, teams either avoid AI entirely out of fear or use it quietly in “ghost mode.” That’s where risk climbs: confidentiality breaches, inaccurate information, bias and harm, unclear accountability, and public trust issues.

   
   

The point isn’t to adopt AI everywhere. It’s to build responsible guardrails so your organization can use these tools in ways that protect people, align with your values, and support a healthier, more sustainable nonprofit workforce.

Want to see what this looks like when it’s built for adoption, not just drafted? Our five-phase AI policy development pathway is outlined here.

What Should a Nonprofit’s Generative AI Policy Include?

In our experience, nonprofits should address the following:

1. Approved Uses of AI

   • Define how staff can use AI, such as for brainstorming, automating tasks, or summarizing reports.

   • Emphasize that AI should complement—not replace—human judgment.

     
     

2. Vetting and Approval of AI Tools

   • Decide what “approved tools” means for your organization and who owns that list.

   • Explicit approval should be required for unvetted tools.

     
     

3. Responsible Use of Sensitive Information

   • Prohibit inputting personal or proprietary data into AI tools unless anonymized.

   • Align restrictions with broader organizational policies on information and technology.

     
     

4. Co-Learning and Adaptability

   • Foster a culture of co-learning by encouraging staff to share insights, challenges, and innovative uses of AI tools.

   • Recognize that generative AI is a fast-evolving space and commit to updating policies as the technology advances.

     
     

5. Human Oversight and Accountability

   • Require human review of AI-generated outputs, particularly for public-facing communications.

   • Ensure AI-generated materials align with the organization’s tone, mission, and values.

     
     

6. Legal Compliance and Risk Management

   • Clarify your risk posture and ensure your policy aligns with relevant laws and your organizational requirements.

   • Ensure compliance with national and local laws, such as GDPR or CCPA, and stay updated as regulations evolve.

Why Nonprofits Can’t Afford to Skip an AI Policy

Without a policy, nonprofits risk:

• Data Breaches: Confidential information could be exposed.

• Reputational Damage: Misaligned AI use could erode trust with donors and stakeholders.

• Missed Opportunities: Inefficient or unethical AI use may limit innovation.

Download Our Free Generative AI Starter Policy Template

To make policy development easier, we’ve created a Generative AI Starter Policy Template tailored to nonprofits. It’s designed to help you move from vague intention to clear guardrails, using language that centers people, equity, and alignment with mission and values.

This is a starter, not a final policy. Your organization will still need to tailor key decisions to your context and build a thoughtful rollout so the policy is actually understood and used.

Get the Starter Template

Need Additional Support?

We get it. You can’t afford to sit this one out.

If your team is experimenting without shared clarity, you’re not just missing opportunities. You’re increasing risk and adding stress to already-stretched leaders.

The goal isn’t to “use AI more.” The goal is to create permission and guardrails your staff can trust and your board can stand behind.

If you want a partner to help you move from confusion to clarity, explore our five-phase policy development process and start with Let’s Chat. We’ll help you choose the right path, whether you want a cohort-based lab experience, light-touch advising, or a full custom build.