5 Reasons Your Nonprofit Absolutely Needs an AI Policy in 2025

Let’s go back a couple years. Even halfway through 2024, I never would’ve thought we’d be talking so seriously – at least in the nonprofit world – about something as exciting and game-changing as artificial intelligence. Sure, generative AI made an almost immediate impact for speeding up the grant writing process, nonprofit marketing and donor communications. But going so far as to discuss nonprofits needing a formal AI policy wasn’t on my 2025 Bingo card. 

Yet, here we are. We’re living in a time when artificial intelligence is reshaping how we operate, communicate and drive impact. 

It’s not just the ability to create at lightning speed. It used to take precious time to write grant proposals, design annual reports and schedule social media posts. Today, we’re using AI to PREDICT donor behavior, personalize communications and gather intelligence for ultimate impact. 

But let’s be clear, while AI has the power to revolutionize the nonprofit industry, it also comes with its own set of challenges. That’s why I firmly believe every nonprofit must have a robust AI policy in place. 

Solid Arguments for Your Nonprofit to Adopt an AI Policy

1. To Protect Donor Privacy Like It’s Your Most Precious Asset

Your donors trust you with their personal data, and that trust is the backbone of your organization. But like any technological advancement, the people who DON’T use it are slow to trust it.

Get it in writing what you WILL and WON’T do with data gained from using predictive fundraising AI. Your AI policy acts as a shield, showing your community that their privacy is non-negotiable.

AI processes unthinkable amounts of data in seconds. Your nonprofit must have a strict AI policy that ensures you’re not only compliant with data privacy laws, but also safeguarding your supporters’ sensitive information. No one wants to be caught in a data breach nightmare. 

2. To Promote Transparency & Build Trust

Imagine if you had a secret ingredient in your fundraising strategy, but you never told anyone what it was. That’s what happens when you use AI without a clear policy. 

You’ve built your nonprofit case for support, and they’ve jumped on board your community mission with an open heart (and an open wallet). Your nonprofit needs their funding to not just operate, but thrive in whatever sector you serve. 

The least you can do is communicate openly and honestly.

By outlining how AI is used in your operations — what data it collects, how it’s processed and how decisions are made — you build trust with your donors. They know you’re not hiding anything, and that goes a long way in strengthening those crucial relationships.

3. To Ensure Ethical Use of Artificial Intelligence

AI can inadvertently perpetuate biases if not managed correctly. Establishing ethical guidelines in your AI policy ensures that every decision made by your AI tools is fair, unbiased and aligned with your nonprofit’s values. 

(Remember: you can’t have a nonprofit value proposition without values.)

This proactive approach prevents unintentional harm and keeps your organization’s mission pure. It’s about ensuring that every piece of technology that your nonprofit implements works for community good.

4. To Maintain the Human Touch in a Digital Age

Artificial intelligence can generate content and automate processes, but we always say AI needs the human touch to be effective. 

Beyond that, it can’t replicate the warmth of a genuine human interaction that nonprofits still need to serve communities. Your AI policy should clearly define the boundaries — where AI stops and human connection begins. This balance ensures that while you enjoy the efficiency of AI, your messaging remains heartfelt, authentic and tailored to resonate with your audience.

5. To Prepare for the Future & Stay Agile

The digital landscape is ever-evolving, and what works today will be obsolete in the future with 100% certainty. A comprehensive AI policy is not a one-time document. It’s a living framework that evolves as new technologies emerge. 

You continually update other nonprofit policies – from board governance to employee and volunteer protocols. A nonprofit AI policy is no different. By doing so, you ensure that your organization remains agile, ready to adopt cutting-edge tools while mitigating risks.

Let Us Help You Build a Nonprofit AI Policy to Build Trust & Communication

At Grand River Agency, we’re at the forefront of helping nonprofits in Western New York and beyond to navigate this complex, exciting AI landscape. I recently became certified in Artificial Intelligence for Nonprofit Marketing & Fundraising through Nonprofit Tech for Good. 

AI is a powerful tool, but it’s the human touch that turns technology into meaningful impact. Let’s chat about how we can help you create a nonprofit AI policy that drives success while keeping your values intact. Email me directly at ke****@**************cy.org. 

Kelsey Boudin

President and Founder, Grand River Agency
With over 19 years of diverse experience in print journalism, digital media marketing, and nonprofit administration, Kelsey Boudin founded Grand River Agency (formerly Southern Tier Communications Strategies) in 2020. The agency specializes in offering contract-based strategic communications, content marketing, grant proposals, website design, and public relations services to small businesses and nonprofits. Kelsey’s career spans roles as an editor, content creator, and grant writer, reflecting his expertise in leading successful digital marketing campaigns, securing funding, and executing various projects.

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