Funders Are Asking About AI. Here's What Nonprofits Need to Know.

It's happening now, and it's accelerating faster than most organizations realize.

The numbers tell the story

According to a 2026 survey from Foundant Technologies, 81% of foundations now report using AI in some capacity within their own operations. That matters because funders who use AI themselves tend to expect grantees to be thoughtful about it too.

Among grantees, nearly two-thirds of organizations report using AI in some form. But here's the gap: 90% of foundations don't currently offer implementation support to help organizations adopt these tools. The expectation is forming faster than the support infrastructure.

What foundations are evaluating

Charitable Advisors identified six categories of questions that foundations are beginning to weave into their application processes:

1. Current AI usage — What tools are you using today, and for what?
2. Data readiness — How is your data organized, governed, and protected?
3. Staff capacity — Does your team have the skills to use AI responsibly?
4. Ethical guardrails — What policies govern your use of AI, especially around client data?
5. Impact measurement — How will you measure whether AI improved outcomes?
6. Sustainability plan — What happens when the grant ends? Can you maintain the tools?

Each question signals that funders want to invest in organizations that approach AI with intention, not just enthusiasm.

Real money is moving

This shift has serious funding behind it. The Humanity AI initiative committed $500 million specifically to support responsible AI adoption in the social sector. OpenAI has a $50 million fund for nonprofits. Google.org committed $75 million. The McGovern Foundation put $75.8 million toward AI in public interest research.

These are long-term commitments. Funders see AI readiness as core organizational capacity, and they're funding accordingly.

What this means for your organization

If your organization hasn't thought about AI strategy yet, you're not behind. But the window where "we haven't explored this yet" is an acceptable answer on a grant application is closing.

The good news: funders aren't looking for sophisticated AI deployments. They're looking for thoughtfulness and a clear policy. It shows you've considered the risks and have a plan for building capacity over time.

Three things you can do now

1. Draft an AI use policy. Even a simple document covering what tools staff may use, what data is off-limits, and what disclosure is required puts you ahead of most organizations. Funders are looking for evidence of responsible governance, not technical sophistication.

2. Audit your data readiness. Many grant applications now ask about data infrastructure. You don't need a data warehouse, but you should be able to describe how your organization stores, protects, and uses the information you collect.

3. Build internal comfort before external pressure forces it. A staff workshop exploring what AI is, what it isn't, and where it might help your specific programs creates a foundation you can reference in applications. It also surfaces concerns early, when you can address them thoughtfully.

The opportunity in the gap

Here's what I find most interesting about this moment: the 90% figure. Nine out of ten foundations acknowledge they aren't supporting grantees through this transition, even as they begin asking about it. That gap won't last. The foundations that care enough to ask the questions will eventually fund the answers.

Organizations that invest a modest amount of time now in building genuine AI readiness, not performative adoption, will be positioned to access both the emerging dedicated AI funding and the growing pool of general grants that favor technologically thoughtful applicants.