By Cat Ward,Chris McGrath,Contributor

Copyright forbes

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AI adoption is exploding. Three out of four companies are already using it, according to a Mckinsey report from March. But in the nonprofit sector, a survey sponsored by the humanitarian platform Giving Compass found that most leaders say they don’t feel ready to use AI tools for crucial operations.

That gap isn’t just about technology—it’s about impact. If nonprofits fall behind, it won’t be boardrooms that pay the price. It will be families waiting longer for food assistance, students missing mentorship, communities cut off from the support they rely on.

General purpose technologies have reshaped our world before—electricity, the internet—and each time, the early adopters didn’t just survive, they redefined what was possible. The laggards rarely caught up. AI is today’s electricity, and nonprofits are standing at the same crossroads.

The risks are real, the learning curve is steep, and the sector is already under strain. But hesitation won’t protect nonprofit leaders. Only intentional, human-first adoption will.

So what happens next? The nonprofit sector has choices to make—and the future could play out in very different ways. This is where a pre-mortem is useful: instead of looking back later to ask what went wrong, we can look ahead now and imagine the paths that might unfold.

Scenario 1: What Happens If Nonprofits Don’t Incorporate AI Into Core Strategies?

In my role as CEO at Taproot, I’ve seen nonprofits hesitating with AI adoption—sometimes for ethical reasons, sometimes because of limited resources or capacity. But what happens if the sector opts out?

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The danger is clear: without a proactive approach, nonprofits will fall behind permanently. AI will shape their world, but they won’t develop the skills or tools to navigate it.

The longer nonprofits wait, the harder adoption becomes. Gaps widen. Some organizations will shrink; others may close altogether.

The cost isn’t just organizational—it’s communal. Every year of delay is a year of missed opportunities to deliver services more efficiently, unlock insights from data, and direct scarce resources where they can have the most impact. Communities lose ground every year the sector lags.

And here’s the piece we can’t ignore: technology alone doesn’t change organizations. People do. Without training, support, and intentional change management, adoption will fizzle. Tools without trust are just shelfware.

Scenario 2: What Could Happen If AI Is Implemented Without Guardrails

Rushing into AI without care carries its own risks. Privacy. Equity. Trust. These are not side issues—they’re the lifeblood of the nonprofit sector.

From data breaches to racial and gender bias coded into algorithms, the potential for harm is real. And because nonprofits often work with sensitive populations—young people navigating challenges, people managing mental health needs, immigrant families—getting this wrong could put the very people nonprofits exist to serve at risk.

Let’s be blunt: nonprofits are trusted precisely because they hold people’s most sensitive stories. [1] If AI undermines that trust, it’s not just a tech failure—it’s a mission failure.

Then there’s the human side. Nonprofit work is built on empathy and credibility—qualities that can’t, and shouldn’t, be automated. Do we really want to hand life-changing conversations to machines? Efficiency may come at too high a cost.

Meanwhile, we’re moving closer to the idea of “solopreneurs” running entire organizations with AI at their side. That future may be technically possible—but is it the future we want for the nonprofit sector?

The biggest risk isn’t reckless adoption. It’s adoption without oversight, values, or human guidance to steer it.

Scenario 3: What Responsible, Human-First AI Adoption Looks Like

Here’s the good news: if the nonprofit sector embraces AI responsibly, the upside is enormous. AI can ease the burden of repetitive tasks so workers can focus on strategy, relationships, and impact. Faster insights. Easier fundraising. Lower overhead. Better decisions. This isn’t hype—it’s already happening.

At Taproot, I’ve seen firsthand how AI can lighten the load and transform organizations from the inside out. But in every success story we’ve supported, one element is constant: the technology is wrapped in human support. Skilled volunteers, coaching, and change management make the difference between a tool that works and a tool that gathers dust.

Employers across industries are already using AI to handle rote processes. In the nonprofit world, a survey by TechSoup and Tapp Network, published in February, found that 60% of respondents see potential in automating grantmaking, and a third are already experimenting with AI in content marketing. AI can also analyze vast datasets in minutes, generating insights that used to take weeks.

And while the human aspects must stay at the center, “solopreneur” doesn’t have to be a dirty word. Used wisely, AI can lower the barrier to entry for new nonprofits, channel energy toward unmet needs, and help small organizations punch above their weight. In this framing, AI isn’t a replacement for people—it’s an accelerant for ideas, relationships, and impact.

Here’s the good news: if the nonprofit sector embraces responsible AI adoption, the possibilities are enormous. If AI can ease the burden of rote, time consuming labor, nonprofit workers can focus on strategy, relationships, and impact. Imagine faster insights from data, easier fundraising, and lower overhead costs. Services can improve while costs fall. This isn’t hype: it’s happening now.

My organization supports countless nonprofits, so I can see the potential for AI to lighten the load for workers and transform organizations from the inside out.

Employers already use AI to support teams with repetitive, low-lift processes. In the future, many traditional fundraising and marketing functions will be automated as well: a recent survey found that 60% of nonprofits see potential for AI in automating grantmaking processes, and a third are already incorporating AI into content marketing workstreams. AI can also analyze large data sets and provide recommendations within a matter of minutes, offering clearer insights, enabling continual improvement, and supporting better decisions.

And while the human aspects must remain front and center, “Solopreneur” doesn’t have to be a dirty word. Used thoughtfully, AI can lower the barrier to entry for new nonprofits, helping leaders channel energy toward unmet needs and underserved niches. In this framing, AI isn’t a replacement for people—it’s an accelerant for ideas, relationships, and impact.

The future isn’t AI or people. It’s AI plus people—working together.

Stony Brook, N.Y.: Prof. Steven Skiena, director of Stony Brook University’s AI Institute, is shown in a server room inside the new computer science building on the Stony Brook, New York, campus on June 20, 2024. (Photo by John Paraskevas/Newsday RM via Getty Images)
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What To Expect From AI-Savvy Nonprofits In 2026

General purpose technologies like electricity and the internet transformed our world—but not evenly, not at first. Every leap forward has required intentional effort to make sure communities weren’t left behind. AI will be no different.

We have the chance to write a new story—one where access and opportunity are designed in from the start. But it will require nonprofit leaders, funders, and corporate partners to act—not next year, not someday, but now.

Nonprofits need time, technical resources, and skilled volunteers to make adoption real—and they need funders and partners who will invest in capacity, not just programs. Best case, we create a virtuous cycle: human-first AI implementations prove their value, attract more support, and expand nonprofit capacity, which in turn strengthens communities.

And here’s the part too often overlooked: change management isn’t a nice-to-have. It’s the hinge on which adoption turns. Without education, guardrails, and trusted human partners, AI won’t stick—and nonprofits will be no better off.

Of course, none of this happens without buy-in from the people doing the work. Nonprofit leaders need to invest in high-quality AI education and meaningful guardrails. They also need to reaffirm what makes this sector unique: AI is a tool to advance missions, not a substitute for the people and relationships at the heart of nonprofit work.

With purposeful investment and human-first adoption, AI could be the first great technology revolution that truly lifts all communities. That’s the future nonprofits must claim—before someone else defines it for them.

What does that mean? Nonprofits are trusted because, theoretically, they’re not trying to trick people into doing anything for someone else’s financial benefit.

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