AI risks and realities for nonprofits: Traps for the unwary and tips for avoiding them

Artificial intelligence is rapidly becoming a transformative force in the nonprofit sector. From drafting grant proposals and donor outreach content to analyzing program data and automating administrative tasks, AI tools are offering organizations new ways to operate more efficiently and expand impact. And importantly, these innovations are not just for large, well‐funded organizations. As we've seen in the experience of small startup community organizations, AI has made it possible for lean teams to produce materials, communications and systems that simply were not attainable before. In fact, data from BDO's 2025 Nonprofit Standards Benchmarking Survey found that 97% of nonprofit leaders say they are using AI at their organizations.