AI has the potential to be a transformative force in organizations working to create needed change in the world, amplifying needed mission-driven work. However, many organizations are still finding their footing in this new terrain. Donors invested in building the capacity of nonprofits have a unique opportunity to propel mission-driven organizations in the AI frontier. 

The Current State of AI in Nonprofits

The AI Equity Project, by Meena Das of Namaste Data and Michelle F. Vryn, CFRE, explores nonprofits' awareness of, readiness for, and comfort with AI. The authors surveyed Executive Directors, Program Directors, Data/IT Managers, Development Officers, and others in 708 nonprofit organizations in the U.S. and Canada. 

Topics in the report cover a wide range of topics, including:

  1. Data equity practices
  2. Readiness for AI implementation
  3. Ethical considerations in AI usage
  4. Training and capacity building for AI and data equity
  5. Barriers to AI and data equity implementation

Based on the results of the survey, it’s clear that nonprofits recognize the importance of AI but need additional support to realize it’s full potential. Some of the key findings include:

  • Knowledge is a barrier to readiness
    Most nonprofits (82%) of nonprofit organizations categorize their use of AI as ad hoc. When it comes to assessing whether their organization is ready for AI, 21% said they were unsure and 35% not at all.
  • Opportunities for AI governance
    Very few (7%) of nonprofits have guides or policies for data equity or AI equity. Additionally 92% of organizations said their current infrastructure for data and AI initiatives to be average to far below average. Nonprofits are working under ad hoc approaches or cobbling together tools which leads to inefficiencies. 
  • Leadership, collaboration, and training are key
    Investments in leadership and collaborations could lay the groundwork for greater usage of AI among nonprofits. The sector needs more skilled AI professionals, funding for training, and opportunities to collaborate. 

Donors Can Accelerate Nonprofit AI Adoption

Donors have the chance to make a big impact by supporting nonprofit AI initiatives. Funding for AI innovation is about more than money, it’s about investment in potential of the organization. According to the report, are a few ways donors can make a difference:

  1. Fund capacity. Donors can prioritize funding for AI and data equity training. The survey found that 35% of respondents lack of awareness about AI, creating a significant barrier. Funding for training programs can help nonprofits develop the skills they need to effectively adopt and use AI. 
  2. Champion ethical AI. Donors can push for responsible AI through targeted grants or incentives that encourage nonprofits to adopt AI practices that prioritize equity, inclusivity, and fairness.
  3. Advocate for AI governance. Lend your voice to the call for clear AI guidelines in the nonprofit sector. Your advocacy can help create a framework that ensures AI is fair, transparent, and accountable. 
  4. Support research and innovation in AI equity. Support funding for research initiatives that explore the intersection of AI and equity. This could include grants for academic studies, partnerships with tech companies, and support for nonprofit organizations that are leading the way in AI equity.

By supporting nonprofits in their AI journey, donors are not just helping individual organizations. They are making investments that can redefine approaches to some of society's most pressing challenges and support a more equitable future for all. 

Download The AI Equity Project 2024 report. 

Giving Compass is a sponsor of The AI Equity Project