Tim McKay

Does AI belong in the nonprofit world?

Given all the attention to Artificial Intelligence and its “benefits,” nonprofits are in a challenging position. One so significant that I wonder whether AI deserves a role in nonprofits at all. By embracing it, using it, or even turning a blind eye to it, we must accept our role in the consequences of AI.
When I think of nonprofits, I think of people.

After all, the IRS only gives nonprofits the coveted 501(c)(3) status if they are, in fact, helping people in some way. The tax-exempt purpose must be charitable. To quote the IRS website, “The term charitable … includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.” Source -  https://www.irs.gov/charities-non-profits/charitable-organizations/exempt-purposes-internal-revenue-code-section-501c3

That definition applies to the people they serve, but it takes an organization and its operations to provide that service. (Those functions are also defined and regulated by the IRS.) Again, that makes me think of people. Board members, staff, donors, and volunteers are integral to any organization and its operations. Collectively, they are the “heart and soul” of the nonprofit's purpose. In most cases, these people are passionate, caring, and dedicated. They are involved because they are committed to doing good aligned with the charitable purpose, and they are generally people who care about building community and advancing knowledge, health, and the well-being of people in general.

So, how does AI fit into that order?

AI has been blamed for displacing workers. According to an article in Forbes Magazine, “Estimates vary, but experts converge on a transformative window of 10 to 30 years for AI to reshape most jobs. A McKinsey report projects that by 2030, 30% of current U.S. jobs could be automated, with 60% significantly altered by AI tools. Goldman Sachs predicts that up to 50% of jobs could be fully automated by 2045, driven by generative AI and robotics.” Source - https://www.forbes.com/sites/jackkelly/2025/04/25/the-jobs-that-will-fall-first-as-ai-takes-over-the-workplace/

To me, the word job has always been synonymous with a human being. If jobs are being replaced by robots and software-driven intelligence, what happens to those humans? Goldman Sachs predicts, “Innovation related to artificial intelligence (AI) could displace 6-7% of the US workforce if AI is widely adopted.” (Oh no, there is that 6-7 thing again.) Source - https://www.goldmansachs.com/insights/articles/how-will-ai-affect-the-global-workforce

What is the cost of that displacement? Having worked with nonprofit organizations that help people get back on their feet after losing a job, I’ve seen the cost firsthand. It’s more than re-training and finding a new job. Unemployment takes a toll on housing, transportation, food, relationships, and physical and mental health. Unfortunately, it is the lower-income, entry-level, and routine-based jobs that could be most affected. Typically, these workers don’t have much of a safety net and live paycheck to paycheck.

As nonprofits, are we contributing to many of the problems we are trying to solve by embracing and supporting AI?

Within our organizations, some of these jobs might be performed by volunteers. Are we going to have robots stocking shelves at the food bank or serving meals at the soup kitchen, AI phone systems taking calls on the helpline, AI-generated voices asking for donations, and self-checkout at the thrift store? Volunteers or employees who perform those roles help foster the communities they serve by providing human interaction—sometimes the only dignity and respect a homeless person receives comes from a volunteer. Will AI dehumanize our services?

There are also ethical concerns.

Perhaps the highest monetary cost of AI is the consumption of natural resources. The Penn State Institute of Energy and the Environment says, “By 2030–2035, data centers could account for 20% of global electricity use, putting an immense strain on power grids.” And, “The need for advanced cooling systems in AI data centers also leads to excessive water consumption, which can have serious environmental consequences in regions experiencing water scarcity.” Source - https://iee.psu.edu/news/blog/why-ai-uses-so-much-energy-and-what-we-can-do-about-it

There are other environmental implications of sustaining the AI infrastructure, given the short lifespans of computer processors and storage devices. Planned obsolescence creates more computer waste. Increased demand for new hardware will pose environmental challenges related to the mining of raw materials and the chemicals used in their processing.

Noman Bashir, lead author of the impact paper, a Computing and Climate Impact Fellow at MIT Climate and Sustainability Consortium (MCSC) and a postdoc in the Computer Science and Artificial Intelligence Laboratory (CSAIL), says, “The industry is on an unsustainable path.”

If we are producing more energy and diverting more water resources to Generative AI, it stands to reason that there will be more power plants, higher greenhouse gas emissions, and greater pollution, thereby leading to poorer health outcomes for communities surrounding them.

Many predict that AI systems will also have bias and lead to discrimination. Dr. Shawn Powers, senior director of AI policy at Southern New Hampshire University, points out that “technology is not neutral because human values are encoded within its design and use.” People have been wrongly arrested because of AI. False or misleading information has been disseminated, whether inadvertently or deliberately, via AI-generated deepfake images or videos. Educational institutions are struggling with the implications for academic integrity, and as AI automates problem-solving, critical thinking declines.
Forbes Magazine reports, “What we’re seeing now with the increased use of AI is a massive cognitive offloading, where in the name of efficiency, thinking has become optional. AI can now take meeting notes, generate business plans, write emails... And while this feels like a huge leap forward, there’s a terrible cost: the erosion of critical thinking, the very skill that makes us human.” Source - https://www.forbes.com/sites/lisabodell/2025/11/13/outsourcing-our-minds-how-generative-ai-is-rewiring-how-we-think/

Perhaps there are some roles that AI can do faster, better, and more efficiently than humans, but nonprofits should carefully weigh the consequences to their mission and vision before embracing this technology.

Perhaps we should all have a meaningful discussion about AI at our next board meeting:
- Can AI really help us fulfill our mission?
- Could it adversely affect the people we serve?
- Will it displace staff?
- Can we commit to being transparent about its use?
- Are we willing to accept responsibility for errors or bias caused by AI?
- Considering the environmental and community impacts, does it conflict with our brand?

Despite the challenges, nonprofits might find ways to use AI, especially in administration, finance, governance, and IRS compliance, which could help staff devote more time to serving people or increasing capacity. The trick will be weighing the consequences to our stated purpose on those IRS filings. 

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Sources:
IRS Website: https://www.irs.gov/charities-non-profits/charitable-organizations/exempt-purposes-internal-revenue-code-section-501c3
Forbes: https://www.forbes.com/sites/jackkelly/2025/04/25/the-jobs-that-will-fall-first-as-ai-takes-over-the-workplace/ 
Goldman Sachs: https://www.goldmansachs.com/insights/articles/how-will-ai-affect-the-global-workforce
Penn State University: https://iee.psu.edu/news/blog/why-ai-uses-so-much-energy-and-what-we-can-do-about-it
Forbes: https://www.forbes.com/sites/lisabodell/2025/11/13/outsourcing-our-minds-how-generative-ai-is-rewiring-how-we-think/