What's Happening?
The nonprofit sector is increasingly adopting artificial intelligence (AI) technologies to address complex social issues, but this shift raises significant governance challenges. While AI promises to enhance efficiency and capacity, many nonprofits lack
formal policies to govern its use, leading to concerns about accountability and power distribution. Larger organizations are developing AI principles focused on accountability and mission alignment, but smaller nonprofits often lack the resources to do the same. This governance gap is exacerbated by divergent federal and state AI regulations, which create operational risks for nonprofits reliant on public funding or government contracts.
Why It's Important?
The integration of AI in the nonprofit sector has the potential to transform how these organizations operate, offering opportunities to streamline administrative tasks and improve service delivery. However, without proper governance frameworks, AI could exacerbate existing power imbalances and introduce new risks. Nonprofits may find themselves subject to external mandates that prioritize efficiency over equity, potentially undermining their missions. The sector's ability to influence AI policy and regulation is crucial to ensuring that AI tools are used ethically and effectively, aligning with nonprofit values such as community accountability and human judgment.
What's Next?
Nonprofits are encouraged to develop clear AI use policies that involve staff and community input, ensuring transparency and accountability. Establishing shared principles for engaging with AI-enabled systems and building internal capacity to identify and document patterns of harm are critical steps. Nonprofits must also recognize the option to decline AI tools that do not align with their mission or values. As the window for shaping AI governance narrows, these actions are essential to prevent AI from becoming a mechanism of control rather than a tool for empowerment.
Beyond the Headlines
The broader implications of AI adoption in the nonprofit sector include potential shifts in power dynamics and the risk of AI becoming another layer of surveillance. The sector's experience with technology and policy solutions developed without community input highlights the importance of inclusive governance. AI could either alleviate long-standing capacity constraints or become an extraction mechanism that concentrates power while dispersing risk. The choice to shape AI governance remains available, but action is needed to ensure it aligns with nonprofit values.
