Created By: Terry Cangelosi and Bobby HunterJune 25, 2025 AI is transforming the nonprofit sector, offering new ways to enhance efficiency, improve decision-making, and amplify impact. However, successful AI adoption requires more than just choosing the right tool—it demands a thoughtful, structured approach. At Orr Group, we’ve been at the forefront of helping nonprofits integrate AI into their workflows and finding that ROI. Through our work with partners, we’ve analyzed over 100 AI tools, conducted extensive AI training sessions, and developed customized strategies for organizations looking to maximize AI’s potential. We know firsthand that AI isn’t a magic fix—it’s a tool that, when used strategically, can create meaningful and lasting change. That’s why we developed the Nonprofit AI Journey, a three-phase roadmap designed to help organizations adopt AI responsibly, strategically, and effectively. By following this approach, nonprofits can ensure that AI supports their mission while remaining secure, ethical, and transparent. LAYING THE FOUNDATION: USING AI RESPONSIBLY Before AI can be an asset to a nonprofit, organizations must ensure they are using it ethically, transparently, and securely. Responsible AI adoption isn’t just about avoiding risks—it’s about building trust with donors, beneficiaries, and stakeholders. Nonprofits work with sensitive data and diverse communities, making it even more critical to establish a foundation where AI enhances—not undermines—their work. Step 1. Build AI Fluency AI fluency is more than just understanding what AI is—it’s about knowing how to use it effectively, ethically, and securely. Trade articles, have conversations, and share concerns. An AI-fluent organization: Understands the capabilities and limitations of AI and when human oversight is essential. Ensures fairness, security, and transparency in AI-driven decision-making. Encourages responsible AI experimentation while maintaining ethical safeguards. Step 2. Create AI Policies Next comes building a responsible AI framework with well-defined policies that guide how AI is used internally and communicated externally. Here are three living documents that can help ensure AI usage aligns with the nonprofit’s values: AI Usage Policy – Establishes clear guidelines for how staff should (and shouldn’t) use AI within the organization. AI Governance – Helps align on AI adoption, assess risks, and ensure ongoing compliance. AI Disclosure on AI Usage – Outlines publicly how AI is used responsibly in the organization’s work, what safeguards are in place, and what personal data, if any, AI interacts with. CONSTRUCTING THE FRAMEWORK: USING AI STRATEGICALLY Once a nonprofit has established a responsible AI foundation, the next challenge is integrating AI in a way that adds real value. At Orr Group, we believe that successful AI adoption starts with strategy. Organizations that take the time to assess their needs and prioritize AI solutions based on impact and feasibility are far more likely to see meaningful, mission-driven results. Step 3. Identify AI Champions AI adoption isn’t just a technology shift—it’s a cultural shift. Without internal advocates, even the best AI tools can sit unused or be met with resistance. An AI Task Force, composed of a diverse group of cross-functional staff members along with an executive sponsor, can help ensure AI strategies align with organizational goals, encourage open discussion on AI use cases, ethical concerns, and adoption challenges, and pilot AI tools, gather feedback, and refine best practices. Step 4. Identify Pain Points Before selecting AI tools, nonprofits must first identify where AI can make the biggest difference. We’ve written about this before, but understanding an organization’s workflows fully is crucial to identify pain points that slow down operations and create bottlenecks, and to determine which processes can be streamlined with AI. By mapping workflows first, nonprofits avoid the trap of adopting AI just because it’s available and instead focus on solutions that tackle their biggest challenges. Step 5. Prioritize Solutions Not every problem requires an AI solution, and not every AI tool is worth the investment. Nonprofits must be selective about where they allocate time and resources, ensuring they maximize impact while minimizing effort. Estimating the time/costs saved against the time/costs it will take to implement can help teams weigh options by both their impact and accessibility. By prioritizing AI adoption strategically, nonprofits can ensure they implement the right tools at the right time, focusing on solutions that deliver real, measurable results. Step 6. Research AI Tools Once an organization has identified where AI can help, the next step is finding the right tool for the job. This requires careful research, as the AI landscape is rapidly evolving, but it can help nonprofits avoid unnecessary costs and ensure they choose tools that truly enhance their mission-driven work. Key considerations when researching AI tools include: Security & Compliance – Does the tool align with internal policies? Ease of Use – Can staff adopt and integrate the tool without extensive training? Cost vs. Value – Does the tool’s benefit outweigh the investment? Existing Tech Stack – Do we have any tools currently that we aren’t leveraging fully? REALIZING THE VISION: USING AI EFFECTIVELY At this point, your organization has identified areas where AI can help, researched the right tools, and set clear expectations. Now, it is time to ensure a successful implementation. Implementation isn’t just about rolling out a tool—it’s about ensuring staff adoption, proper training, and ongoing evaluation. Even the best AI tools will fail if employees don’t trust or understand how to use them. Step 7. Set Expectations A strong AI strategy requires a clear roadmap, complete with defined goals, timelines, and expected usage. To ensure AI integration aligns with organizational priorities, nonprofits should: Define transparent objectives – Share with staff what specific problem AI is solving for. How will success/ROI be tracked? Develop a budget – In addition to the software, consider costs for training, ongoing support, and potential scaling. Refresh AI policies – Ensure the AI policies established earlier still guide how tools are used, monitored, and refined. Skipping this step is risky. Your staff may be uninterested in learning a new tool, or they may be skeptical about implementing AI at all. By taking the time to communicate the context of “why this change, and why now”, you give your staff the chance to voice their concerns and feel supported. This change management process is critical for buy-in and progress evaluation. Step 8. Implement AI Successfully Congrats! You’ve done it! Now you can move on to other things. Right? Not quite! Implementation isn’t just about rolling out a tool—it’s about ensuring success in staff adoption, along with ongoing training and evaluation. A successful AI rollout includes: Robust training on tool(s) – Staff should receive not just technical guidance but also ethical and contextual training to ensure they understand AI’s role. Leveraging learning & development – AI training should be integrated into ongoing professional development rather than treated as a one-time event. Feedback Loops – Ensure the team is evaluating AI’s impact, refining its use, and adjusting strategies based on team member feedback. LOOKING AHEAD: THE PATH TO AI MATURITY The Nonprofit AI Journey isn’t one size fits all—every nonprofit is unique—and successful AI adoption will always be an evolving process that requires learning, adaptation, and strategic refinement. Organizations that thoughtfully integrate AI not only increase efficiency but also expand their impact, all while staying aligned with their mission. The question is: Where is your organization on this journey, and are you ready to take the next step? At Orr Group, we’re enthusiastic about the future of AI and hope to share that enthusiasm with our nonprofit partners. We are ready to assist your organization in assessing your workflows and implementing AI & automation into your fundraising and other operational efforts. Contact us to learn how we can help elevate your organization. Contact Us Terry Cangelosi is a Senior Director and Head of Operations at Orr Group. Terry brings 10+ years of nonprofit operations experience to ensure the most efficient operations in Orr Group’s workflows, technology, and infrastructure. Terry is a member of Orr Group’s AI Taskforce. Bobby Hunter is a Senior Associate Director supporting Operations at Orr Group. Bobby is responsible for providing leadership and oversight of the firm’s use of technology and internal systems to ensure maximum efficiency and effectiveness. Bobby is a member of Orr Group’s AI Taskforce.
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