What volunteer boards need to know about AI

When trustees and directors talk about AI, they’re thinking about results. They’re asking: How does this get us closer to our mission?

We talked to nonprofit leaders and governance professionals about their answers to that question, and what really matters when it comes to AI adoption. They shared what they’re excited about, where they’ve seen progress — and how they keep their eye on the ball when it comes to governing AI in their organizations.

With AI use increasing as boards look to add efficiency and better serve their communities, training and policies haven’t quite kept pace. That raises questions about potential risks — and unrealized potential gains.

Our latest infographic captures leaders’ feedback on the role of responsible AI in nonprofits and the necessity of strong policies to oversee and govern its use.

Download our infographic in PDF format here.

“Advances in AI will transform how social sector organizations fundraise, engage supporters, and inspire generosity. Responsible adoption means building sector capacity to understand both the potentials and risks of AI while keeping pace with this emerging technology.” – Woodrow Rosenbaum, Chief Data Officer, Giving Tuesday

Best practices for AI implementation

AI adoption starts with understanding — of AI product categories and their unique risk and benefits, but also how they fit into existing workflows, alter employee capabilities and interact with existing data and governance systems.

From there, it’s time to think strategically about implementation. Effective AI policies put people at their core, with a focus on safety, equity and community trust. The Nonprofit Technology Network (NTN) suggest these 5 best practices:

1. Building governance systems first. Put someone in charge or create a committee, draft a policy and consider how to present these topics to your board.
2. Understanding different AI technologies. Start with a plain-language explainer, and contextualize your knowledge with a framework for evaluating AI tools.
3. Mitigating risks to data and privacy. AI depends on data quality — not just for everyday use, but for building and maintaining chatbots, search tools and more. Review data use and storage policies, assess existing cybersecurity infrastructure and ensure your existing technologies are ready to integrate with AI.
4. Piloting tools before rollout. Start small, document key learnings and test with key teams before expanding access to the whole organization.
5. Using existing best practices for AI policies. The NTN offers brainstorming tools, draft policies and policy frameworks and other resources to help you get started.

AI use in nonprofits is growing

Well over two thirds (72%) of nonprofit boards and staff now report using AI at work. One leader, capturing common sentiment, said “AI has been great for helping create processes and procedures and creating forms.”

Top use-cases cluster around:

• Communication (67%), from emails to reports
• Routine automation (43%) of everyday tasks, like filing or summarizing
• Data analysis (30%) and knowledge management (22%), offering quick, easy-to-use analytical support

Those patterns fit with leaders’ views of positive impact: 70% say AI increases operational efficiency, alongside improved decision-making (24%) and customer experience (15%). Specific advantages mentioned include “better time management,” “clearer writing,” brainstorming and time savings.

Challenges are slowing AI adoption

Privacy and security concerns top the list at almost 60%, followed by ethical issues (43%) and the challenges of integrating with other tools (39%). But much of the problem appears to be social, with roughly a third of leaders pointing to a lack of skilled personnel and resistance to change as top concerns.

Formal AI policies and training are still lacking

Fewer than half of the leaders we spoke to, just 37%, had formal AI policies in place. And fully 87% had received no AI-specific training. Add that almost two thirds (63%) had no clear plan to prepare boards to make ethically informed decisions about AI, and a picture starts to form: Governance is the missing piece.

Risks posed by inadequate AI governance

Weak or absent governance during AI implementation carries serious risks:

1. Inconsistent standards across the organization
2. Regulatory or compliance gaps
3. Reduced transparency
4. Ethical and privacy concerns
5. Data integrity challenges
6. Misalignment with the organization’s strategic goals
7. Limited accountability — and limited potential for impact

4 steps to effective AI oversight

“AI is changing quicker than we can draft a policy around it,” said one board member. “But it’s the way of the world — and if you don’t adapt, you’ll be replaced by someone who has.”

Effective AI governance cuts across key board functions and roles: policy, stakeholder engagement, cybersecurity, training and awareness.

The National Institute of Standards and Technology’s (NIST) Risk Management Framework for AI recommends four essential steps:

1. Mapping it, to understand risks and context
2. Measuring it, through appropriate metrics
3. Responding to it, in priority order
4. Governing it, through policies and procedures that are both transparent and effective

Using technology to help oversee AI use and governance

Among the safest — and most reliably productive — ways to implement AI is through technologies built for board use. Platforms like BoardEffect offers complete control to users so they can select AI only where it’s both needed and useful, with fully ringfenced AI tools so your sensitive data stays safe. It also helps simplify those technical challenges like integration and provides support for drafting policies and training staff.

Features to look for include:

• End-to-end encryption and security for communications and file sharing
• Governance structures built into the technology — such as board committees
• Onboarding and training options already integrated with AI tools
• Purpose-built, native AI for specific, relevant needs (e.g. board book preparation)

Building on new knowledge

Sometimes, getting started is the hardest part. We’ve done some of the legwork for you, compiled in 7 Steps to AI governance for mission-driven organizations.

“If your board/leadership does not have an AI framework in place, they should. This should include strategy as well as the policies,” says Richard Barber of the Mind Tech AI consulting group. “Get some training, get some help.” We suggest starting with Harnessing AI for good: A mission-driven checklist for responsible AI governance.

“Judgment is key. The governance team needs to have a process in place and a policy for how to use AI.” – Dominique Shelton Leipzig , Partner, Mayer

Using technology to help oversee AI

Platforms like BoardEffect can help boards manage AI responsibly by:

• Mapping and measuring AI risks
• Supporting policy development and oversight
• Providing templates and automated processes to reinforce best practices

As Dottie Schindlinger of the Diligent Institute notes, “Governance technology tailored for nonprofit boards can foster a positive and ethical AI environment.”

BoardEffect goes beyond traditional governance tools with its GovernAI capabilities, designed specifically for nonprofit boards. Seamlessly integrated into your workflow, GovernAI transforms how boards prepare, meet, capture decisions, and access key insights:

• AI Smart Book Summary: Instantly transform lengthy board books into concise, actionable insights — no more digging through hundreds of pages.
• AI Smart Minutes: Automatically generate polished, professional meeting minutes from typed notes or transcripts, ensuring decisions and action items are captured accurately for compliant, audit‑ready records.
• AI Smart Prep: Surface the most important topics, decisions, and questions from board materials before meetings, so directors arrive informed, engaged, and ready to contribute.
• AI Smart Search: Pose questions in natural language and instantly retrieve relevant documents, highlights, or past discussions—without manual searching.

By automating administrative tasks, which can consume 8–12 hours per meeting cycle, GovernAI frees boards to focus on strategic oversight and community impact. Designed for nonprofit contexts, it understands compliance needs, nuanced language, and fiduciary responsibilities.

AI offers incredible potential for nonprofits, but only if boards lead with foresight and responsibility. Explore how BoardEffect can help your board implement effective AI governance practices and request a demo today.