Using AI to advance the mission: What resources nonprofits need

For AI-powered nonprofits—an emerging class of nonprofits that are building AI tools to advance their mission-driven work—AI isn’t just an add-on to improve efficiency.They’re building technology to help solve humanity’s most urgent issues. But they need funding to advance that work. In fact, Fast Forward’s 2025 AI for Humanity Report found that 84% of AI-powered nonprofit respondents need funding to further develop and scale AI-enabled solutions.

Supporting nonprofits in developing AI solutions or using AI to improve efficiency is no longer an urgent issue just for those who care about tech but for all who care about humanity.

Closing the social sector’s AI knowledge gap

While there may be growing recognition of AI’s potential in the social sector, both to advance mission-driven work and to improve efficiency, there remains a significant gap between recognition and action, due to a lack of understanding among both foundation and nonprofit staff.

In a recent Center for Effective Philanthropy survey, nearly two-thirds (62%) of both foundation and nonprofit leaders reported that none or just a few of their staff members “have a solid understanding of AI and its applications.” Importantly, both foundation and nonprofit leaders agreed that foundation staff lack an understanding of nonprofits’ AI-related needs. And while 90% of nonprofit leaders expressed interest in using AI more in their work, only 17% reported that their funders have engaged them in conversations about AI.

Foundations can’t fund what they don’t understand, but they don’t need to have all the answers up front. Funders looking to support AI development can learn enough to understand AI’s core capabilities and limitations and ensure they’re partnering with communities to identify problems AI is best equipped to solve. It’s never been more important to support nonprofits—whether they’re just beginning to explore how AI can streamline operations or are ready to implement and scale AI-powered solutions.

Providing unrestricted funding for developing and using AI—responsibly

Despite being tasked with supporting underserved and under-resourced communities, nonprofits themselves often lack the funding, infrastructure, and tools to do that work—including keeping up with technological innovation. So, what do nonprofits need from funders to maximize the potential benefits of AI for humanity?

Research and development funding. First, nonprofits that are actively building AI tools and those just starting to invest in AI both require funding for research and development—before they can demonstrate impact. Many funders want to see measurable outcomes before investing, putting early AI adopters in a catch-22: needing capital to prove impact, but needing proven impact to unlock capital. What these organizations need most is unrestricted, upfront capital that allows them to experiment and build the AI infrastructure that makes scale possible.

Support for responsible AI use. Second, it costs nonprofits time and money to ensure they’re using AI responsibly. Fast Forward’s survey found 71% of AI-powered nonprofits have processes in place to assess and mitigate AI risks. But without engineers, product leads, and data staff working closely with partners and the communities they serve, they can’t confidently assess whether their systems are truly ethical or secure. When it comes to AI, an organization’s impact is only as reliable as its commitment to equity and accountability.

Empowering both foundation and nonprofit staff to invest in AI

At a recent event, the Patrick J. McGovern Foundation (PJMF) and Fast Forward brought together 200 like-minded funders committed to using philanthropic capital to help nonprofits deploy AI for good.

What emerged from the sessions and conversations were a set of common practices among funders that were funding AI projects or planning to do so. They offer a high-level roadmap for supporting AI solutions in the sector.

• Build basic AI fluency across the institution. Program staff, grants management, senior leadership, and board members all have a responsibility to understand how the technology works. Creating an AI use policy to govern staff use of the tools and organizing AI 101 workshops are good places to start.
• Position AI across issue areas, not as a standalone grant portfolio. AI’s broad capabilities mean there are high-potential use cases across issue areas as diverse as conservation, human services, and access to housing. Consider that AI is a tool that can exist alongside all of the other strategic levers used to advance progress.
• Empower program officers to confidently evaluate proposals focused on developing and using AI. Align on a set of principles and associated diligence questions. For example, what real-world problem is this nonprofit tackling with AI? What problems or bottlenecks can AI remove? How will the nonprofit protect its beneficiaries’ data and address potential biases in their algorithms? Laying out these questions up front will help program officers identify promising proposals and pinpoint areas of uncertainty.

Investing in AI for humanity is an opportunity to scale impact and improve our global well-being.

Photo credit: Fast Forward