The Philanthropist’s Guide to Nonprofit AI Investments

If you're a tech-curious philanthropist, you might be considering funding a nonprofit's AI initiative. Awesome. There is a good chance that organization is an AI-powered nonprofit (APN): a nonprofit with AI at the core of their impact model. Before funding one, we recommend evaluating a few key areas.

• Mission alignment: AI can scale nonprofit solutions and impact to unprecedented levels, but it doesn't always make sense to use AI. Ask nonprofits why AI is the right tool for the problem. A strong answer should connect the technology to specific outcomes, not just greater efficiency or scale.
• Technical capacity: Building an AI-powered solution takes more than access to an AI tool. Ask whether the nonprofit has the technical expertise, data, infrastructure, and partnerships needed to build, test, and improve the solution over time.
• Ethical safeguards: AI is powerful, and with great power comes great responsibility. Probe on how your prospective grantee is protecting against unintended harms.

By evaluating nonprofits against these focus areas, you can lead the movement in funding AI for good. But it takes discernment. Before jumping on the AI bandwagon, make sure to ask the tough questions. At Fast Forward, we believe that AI can reshape the social impact sector, if done right. By being thoughtful and intentional with your investments, you can help ensure that AI is a force for good in the world.‌ Want to go deeper? Here’s a handy dandy guide to nonprofit evaluation, or explore our tools for grantmakers.

AI for Social Impact

As a philanthropist, you’re here for impact. It’s not about chasing flashy ideas but committing to solutions that truly make a difference. That’s why it’s crucial to understand what real-world problems this nonprofit is tackling with AI. Is it different and better than current work? How will it move the needle on human rights, education, healthcare, or other social issues? Get specific about the measurable outcomes and define how this solution will create lasting change.

Next, let’s talk beneficiaries – the folks served by your grantees’ work. How were beneficiaries served before AI? Is there AI built into the tech tools your grantee already uses? Or does the nonprofit need to build something new? What problems or bottlenecks do you see AI removing for your grantee? How will the nonprofit protect the data of its beneficiaries?

Now, let’s get real about ethics. AI is powerful stuff, and with great power comes great responsibility. How is this nonprofit addressing potential biases in their algorithms? How are they protecting data privacy and security – of their beneficiaries and organization? AI has the potential to exacerbate some social problems while improving others. What are the potential risks and unintended consequences, and do they have a plan to mitigate them? None of us want to fund any tech that could do more harm than good.

And of course, we need to know if the nonprofit team can actually pull this off. AI is changing fast, and nonprofits are chronically underfunded. Most can’t afford the latest and greatest tech and talent. The good news: the AI revolution is making tech tools more accessible than they’ve ever been. Still, you must ask: does this nonprofit have the tech chops to implement and manage this AI solution? Do they have the skills in leadership to build or manage a product of this scope? Have they scenario planned the upfront cost and ongoing cost of maintenance? Does the cost justify the impact? We want to invest in solutions that are not only impactful but also sustainable and scalable.

So, before jumping on the AI bandwagon, make sure to ask these tough questions. At Fast Forward, we believe that AI has the potential to revolutionize the social impact sector, but only if it’s done right. By being thoughtful and intentional with your investments, you can help ensure that AI is a force for good in the world.

Here’s a handy dandy downloadable checklist for your next AI solution prospect call:

Nonprofit AI Initiative Prospect Call Checklist

Impact and Purpose:

• What specific problem(s) is the nonprofit trying to address with AI? Clearly define the social or environmental issue that the AI solution aims to solve.
• How will the AI solution create positive change? Identify the measurable outcomes and impact the nonprofit expects to achieve through AI.
• Who are the beneficiaries of this solution? Ensure the solution benefits the intended community.
• What is the solution’s potential for scalability and sustainability? Assess whether the solution can be expanded to reach a wider audience and continue beyond the grant period.
• Optional: Does the nonprofit have a plan for communicating the solution’s findings and learnings to the wider community? Sharing knowledge and lessons learned can benefit the AI for Humanity field. Is there opportunity to improve and expand large-scale open data initiatives and infrastructure?

Capacity and Resources:

• Does the nonprofit have the technical expertise and resources to implement and manage the AI solution effectively? Assess the organization’s existing capabilities and its plan for acquiring any necessary expertise or resources.
• Is the nonprofit collaborating with external partners in the AI field? Partnerships can enhance the solution’s quality and impact.
• Are you building an AI tool or using an off-the-shelf product? This impacts building and managing effectively.
• What is the solution’s budget, and how will the grant funds be used? Review the financial plan to ensure responsible use of funds and alignment with the solution’s objectives.
• What is the nonprofit’s long-term vision for using AI in its work? Understand how this solution fits into the organization’s broader strategy for leveraging AI to achieve its mission.

Ethical Considerations:

• How will the AI solution address potential biases and discrimination? AI algorithms can inherit biases from their training data. Ensure the nonprofit has plans to mitigate and monitor for biases.
• How will the nonprofit protect the privacy and security of data used in the AI solution? Data privacy and security are paramount when dealing with AI. The nonprofit executives must be able to understand and explain their data handling practices and security measures.
• Is the downside bigger than the upside? Explore potential negative impacts and how the nonprofit plans to mitigate them.
• Has the nonprofit considered the broader implications of AI and its impact on social issues from jobs to environmental degradation? Discuss the potential long-term effects of AI on society and how the solution fits into the broader landscape.