Do Nonprofits Need an AI Policy? Yes and Here’s Why

We’re living through a seismic shift. Artificial Intelligence is transforming how organizations operate, connect, and serve.

For nonprofits, the stakes are especially high.

As a consultant and strategist working at the intersection of innovation and mission-driven impact, I’m hearing more and more nonprofit leaders ask:

“How do we use AI responsibly?” “What are the risks?” “Do we even need an AI policy?”

The answer to that last one is: Yes - absolutely.

Here’s why:

1. You’re Probably Already Using AI

From email automations to ChatGPT, AI is already woven into your daily tools. Without a clear policy, you risk:

• Compromising data privacy

• Making decisions that unintentionally conflict with your values

• Missing opportunities to use AI more effectively and ethically

A policy brings clarity, accountability, and alignment.

2. AI Impacts Equity and Access - And Nonprofits Must Lead the Way

AI systems can carry biases from the data they’re trained on. For nonprofits committed to equity, this is a weighty concern.

A thoughtful policy helps your organization:

• Name its values

• Establish ethical guidelines

• Stay accountable to the communities you serve

This is about value alignment.

3. Funders and Stakeholders Are Starting to Ask Questions

Forward-thinking funders and boards are beginning to assess how organizations approach AI use.

Having a clear, proactive stance positions your org as:

• Responsible

• Innovative

• Future-ready

It builds trust and that can become a strategic advantage.

Final Thought: Make It Human

Technology can be deeply human-centered, when guided with intention.

Let’s make sure innovation is in service of equity, clarity, and community impact.

Want help creating an AI policy that fits your nonprofit’s values and real workflows?

I support teams to clarify risks, set practical guidelines, and build a human-centered approach to AI.

About Sarah Downey

Sarah Downey is a Canada-based consultant helping nonprofits adopt AI safely, ethically, and confidently through governance clarity and policy development.