Overview
To better understand how artificial intelligence is taking shape across the nonprofit sector, The Strategy Group conducted a brief survey of organizational leaders. The goal was straightforward: assess where Artificial Intelligence (AI) is currently being used, evaluate its impact on organizational effectiveness, understand the status of AI governance, and surface emerging opportunities and concerns. Our sample of respondents was small, 21 nonprofit leaders, but we learned a few important things.
Artificial intelligence is beginning to take hold in the nonprofit sector, but most organizations are still in an exploratory phase. Based on the survey findings, AI use is currently concentrated in communications-heavy functions such as marketing, social media, and grant writing. Administrative areas like operations and fundraising are also seeing some adoption, while core program delivery and finance remain largely untouched. A small group of organizations report not using AI at all.
Impact
The impact to date has been modest. Most respondents describe AI’s effect on their organization’s effectiveness as limited, with only a small percentage reporting significant gains. For many, AI is functioning primarily as a drafting, editing, and efficiency tool rather than a transformative strategic asset. A meaningful share of leaders say it is simply too early to determine long-term results.
Governance is developing in parallel. Just over half of responding organizations have established an AI policy, while the remainder have yet to formalize one. This reflects a sector that recognizes both opportunity and risk. Leaders are actively weighing efficiency gains against concerns about authenticity, staff over reliance, ethical implications, and data privacy. Many emphasize the need to protect the human voice in communications while still embracing tools that save time and improve clarity.
Key Takeaways
Our takeaway: the overarching picture is one of cautious curiosity. Nonprofits are not rushing headlong into AI adoption, nor are they ignoring it. Instead, they are testing applications, participating in learning cohorts, and beginning to think more intentionally about policy and training. As tools become more sophisticated and expectations rise, the next stage will likely involve clearer strategy, stronger governance, and deeper integration into organizational workflows.
For now, AI in the nonprofit sector is less about disruption and more about disciplined experimentation—a gradual effort to balance innovation with mission integrity. Any other thoughts to share with us? We’d love to hear them! Please do share. Email us at dwhertz@thestrategygroupllc.org or kbrennan@thestrategygroupllc.org.
