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 DALL·E 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 an expert. That’s why a strong Generative AI Policy must include a commitment to co-learning—collaborating, sharing insights, and adapting as the technology develops. This guide walks you through the key elements of a robust policy and offers a free policy sample to help your nonprofit use AI responsibly and effectively.

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What Is Generative AI? Why Should Nonprofits Care?

Generative AI refers to technologies that produce content—such as text, images, or even audio—based on user prompts. For nonprofits, generative AI can:

• Enhance creativity and efficiency: Drafting grant applications, summarizing documents, or brainstorming new ideas.

• Support research and analysis: Simplifying data interpretation and summarizing articles.

• Automate routine tasks: Scheduling, data entry, and other repetitive work.

However, the rapidly changing nature of AI technology underscores the importance of continuous learning and adaptability. Without a clear policy, nonprofits risk falling behind or misusing these tools.

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

   • Use only tools vetted for data security and compliance.

   • 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

   • Consult with legal counsel to ensure your AI policy addresses your nonprofit’s unique risk considerations.

   • 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 Policy Template

To make creating your AI policy easy, we’ve developed a Generative AI Policy Sample tailored to nonprofits. This sample policy includes practical guidance for ethical and effective AI use, co-learning strategies, and legal considerations.

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Need Additional Support?

We get it. You can't afford to miss or sit this one out.

If your team is experimenting without permission or clarity, you’re not just missing opportunities—you’re increasing risk.

The time to act is now. Equip your board. Create permission and guardrails. Get ahead of the policy curve—before you’re unable to catch up.

Explore our structure, five-phase policy development process and start moving from confusion to clarity.

Let’s lead this change—together. Book a free discovery call here.