Top Ten AI Usage Policy Considerations for Nonprofits

Artificial intelligence (AI) is rapidly transforming nonprofit business operations. AI provides great promise with respect to enhancing efficiency, optimizing workflows, analyzing data, and boosting productivity. At the same time, AI presents various legal, ethical, reputational, and other risks. A sound AI usage policy can enable a nonprofit organization to leverage the promise of AI without compromising work product integrity, disclosing privileged, confidential, or proprietary information, eroding its mission, jeopardizing its reputation, or subjecting the nonprofit to undue legal exposure. Leaders in the nonprofit community should consider the following practical advice when developing and implementing an AI usage policy for their organizations.

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2025 Nonprofit Policy Moments and a 2026 Look Ahead

The Nonprofit Alliance (TNPA) was proud to engage with policymakers regarding important legislative and policy moments in 2025. As we move into 2026, a midterm election year, it is an important time to reflect on some of the key policy moments for the nonprofit sector, highlighting both successes and challenges. We remain grateful to TNPA members for their support of our advocacy engagement and for sharing their individual and organizational perspectives to help shape our work.

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The President’s Executive Order on Artificial Intelligence (AI)

The Nonprofit Alliance (TNPA) reviewed the Trump administration’s December 11, 2025, Executive Order (EO), Ensuring a National Policy Framework for Artificial Intelligence. As expected, the EO lays out several new initiatives that will create bureaucratic roadblocks for AI regulation, building on the January Executive Order and July AI action plan, which included language regarding possible retaliation towards states that regulate AI and pushed for a general lack of AI oversight.

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