The Challenge: Doing More with Less
Nonprofits today are facing unprecedented pressure. Community needs are rising while budgets and staffing shrink. Leaders are being asked to step up services with fewer resources, requiring creativity and resilience to maintain impact. Political shifts in 2025 have further tightened federal support for education, health, and community programs, leaving nonprofits to fill widening gaps. With nonprofit employees making up nearly 10% of the private sector workforce (BLS, 2023), the sector is both vital and at-risk—losing experienced staff while absorbing higher demand from vulnerable individuals and families. Nevertheless, research by the tech-focused nonprofit network NTEN says that almost half of nonprofits (45%) report that they do not spend enough on technology. Where can nonprofit leaders target new spending? Try AI.
The Opportunity: Responsible AI to Increase Capacity
Amid this challenge, responsible use of artificial intelligence offers a path forward. AI can ease the burden on shrinking teams, preserve institutional knowledge, and contain costs while sustaining mission delivery. Yet nonprofits must implement AI thoughtfully. Policies should evolve alongside technology, balancing efficiency with compliance and ethics. Boards and donors now expect organizations to leverage technology responsibly, and nonprofits risk falling behind without clear frameworks for use.
The Signal: Philanthropy Sets Expectations
Philanthropists are already pushing nonprofits toward technology adoption. For example, NextLadder Ventures, launched by five billionaires, is investing in AI solutions that drive economic mobility. Their stated goals represent a broader trend for what donors expect nonprofits to achieve with upgraded tech:
- AI as a Catalyst for Equity – Scale impact without scaling cost by using AI to expand access and personalize support.
- Trusted Partnerships – Work with ethical AI providers to protect vulnerable communities.
- Data-Driven Impact – Build data infrastructure that demonstrates systemic change and justifies further investment.
NextLadder and other mega-funders are being very clear: nonprofits that embrace responsible AI will be better positioned to secure future support.
Your First Steps: Practical AI Wins
Adopting AI doesn’t require massive overhauls. Nonprofits can start small and still achieve meaningful results:
- Answer More HR Questions Quickly – Deploy chatbots trained on HR manuals to resolve 80%+ of employee queries while freeing HR staff for complex issues.
- Break Down Grant Info Barriers – Use conversational AI to make dense policy or program documents accessible to staff and funders.
- Spotlight Power Users – Encourage staff to share AI-driven innovations, promoting secure, field-tested solutions from within the team.
- Speed Up and Document Coding Tasks – Leverage tools like GitHub Copilot or Claude Code to preserve institutional knowledge and ensure consistent documentation.
- Simplify Reporting – Automate the first draft of monthly or quarterly reports, leaving final review and approval to human experts.
The Path Forward: Resilience Through AI
Nonprofits can’t afford to wait for perfect conditions to adopt AI. Starting with small, responsible implementations enables organizations to reduce staff burden, protect knowledge, and strengthen service delivery. By framing AI as a tool for resilience and mission continuity, leaders can reassure boards, donors, and employees that the mission comes first no matter what the headwinds are.
In a time when nonprofits are being asked to do more with less, AI provides a practical bridge between limited resources and growing community need. The organizations that begin their AI journey today will be best prepared to thrive tomorrow.
Sam Hopkins is a Senior Advisor at Mind Over Machines
