AI WITH PURPOSE

How Foundations and Nonprofits Are Thinking About and Using Artificial Intelligence

Overview

The rapid spread of artificial intelligence (AI) is transforming the way we work. Business adoption of AI has surged from 55 percent in 2023 to nearly 80 percent in 2025 — and the nonprofit sector is seeing a similar increase in usage. With the fast pace of relatively unregulated AI innovation and growth, the Center for Effective Philanthropy (CEP) aimed to understand foundations’ and nonprofits’ understandings of, attitudes toward, and engagement with AI — and what role equity plays in these decisions. To our knowledge, this research is the most representative study comparing AI use and views in philanthropy and nonprofits to date.

Against this backdrop, this research study sought to answer the following questions:

What is the current extent and purpose of foundations’ AI grantmaking and strategies?

To what extent are funders and nonprofits thinking about, implementing, and/or funding equitable AI?

Have foundations engaged their grantees in conversations about AI? If so, what are the common themes in those conversations?

What are nonprofits’ needs and interests related to AI?

This survey includes data from:

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Nonprofit leaders' survey responses

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Foundation leaders' survey responses

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Nonprofit and foundation leaders' interviews

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Finding 1

Widespread Use, Widespread Concern

Most foundations and nonprofits use AI in their work but share a common set of concerns about the technology related to security, accuracy, staff expertise, and bias.

Almost two-thirds of foundations and nonprofits report their organization uses AI in its work.

Foundations and nonprofits report using AI primarily for internal productivity and communications-related tasks.

Foundations’ Most Common Uses for AI (N=129)

Nonprofits’ Most Common Uses for AI (N=279)

Leaders’ five most common concerns about AI use are shared across both nonprofits and foundations.

Most Common Concerns About AI Use Among Nonprofit and Foundation Leaders (N=212-446)

"We won’t be able to keep it from coming into our workspace, so we really need to look at how it affects the communities that do not represent those creating the AI — those who suffer from bias or live in underserved and under-resourced communities."

– Nonprofit Leader

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Finding 2

Understanding AI Needs

Both foundation and nonprofit leaders believe foundation staff lack an understanding of nonprofits’ AI-related needs.

The majority of foundation leaders report their staff has limited, if any, understanding of their grantees' views, technical abilities, or ethical concerns regarding AI.

Percent of Foundations Reporting That Their Staff Has Limited to No Understanding of Grantees’ AI Attitudes/Capacities (N=199-201)

17%

of nonprofit leaders report their funders have engaged them in conversations about using AI in their work

Proportion of Nonprofits’ Foundation Funders That Have Engaged Them in Conversations About AI (N=441)

Almost two-thirds of nonprofits and foundations report that none or just a few of their organization’s staff have a solid understanding of AI and its applications.

Proportion of Foundation and Nonprofit Staff With a Solid Understanding of AI and Its Applications (N=214-448)

Note: Percentages may not add up to 100 due to rounding.

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Finding 3

Supporting Nonprofits’ Use of AI

Few foundations provide funding or nonmonetary support for grantees’ use of AI.

90%

of foundation leaders report their foundations do not offer funding or nonmonetary support for AI use to grantees

Over a third of foundation leaders say they simply have not received many, if any, requests from their grantees for supporting AI-related needs.

Reasons Foundations Do Not Currently Provide AI Implementation Support to Their Grantees (N=129)

14%

of funders have concrete plans to increase their level of AI implementation support over the next three years

Foundations’ Planned Adjustments to Their Levels of AI Support for Grantees over the Next Three Years (N=211)

Note: Percentages do not add up to 100 due to rounding.

Most Common Types of AI Support Nonprofits Would Like from Their Foundation Funders (N=439)

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Finding 4

Equitable AI

Much opportunity remains for both foundations and nonprofits to take the ethical development, deployment, and use of AI into consideration, particularly for historically marginalized communities.

Few foundations or nonprofits report discussing or working on using AI systems in a way that promotes equity.

50%

of foundations providing AI implementation support report they do not currently provide support to advance equitable AI

Most nonprofits report that they never engage in internal conversations about equitable AI.

Percent of Nonprofits That Engage in Internal Conversations about Equitable AI (N=444)

Over 80 percent of nonprofits report they are not participating in any activities to advance equitable AI.

Percent of Nonprofits Participating in Activities to Advance Equitable AI (N=437)

Note: Percentages add up to more than 100 because respondents could select all that apply.

"If equity is the goal, the nonprofit sector must be at the table from the start, not just as users of AI, but as co-creators of its purpose and application. That means not only inviting us in but funding our participation in innovation spaces. Without us, equitable AI won’t happen. With us, it’s possible."

– Nonprofit Leader

Conclusion

Nonprofits and foundations are likely to continue taking a wide range of stances on AI use and funding. Whether organizations choose to adopt or opt out, to critique or promote — or anywhere in between — we hope that this research will prompt a thoughtful and proactive approach to the arrival of AI in the philanthropic and nonprofit sectors.

If this report has been helpful to you, please consider supporting CEP’s research. Reach out to us for more information. Thank you.

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Research supported in part by:

Authors: Elisha Smith Arrillaga, Ph.D., Seara Grundhoefer, and Christina Im

Copies of the survey instruments can be found here.

This work is licensed under the Creative Commons BY-NC-ND license.

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