Good AI Governance
Kia ora, Lani here! I'm one of the co-founders of Fundsorter, and a passionate advocate for community, philanthropy and equity in Aotearoa. Good news: we have a working product! We are so happy with how Fundsorter is progressing and I can't wait to start sharing it. While we're refining and tweaking and preparing for launch, we want to share useful insights and expertise on technology, community and philanthropy, starting with this post on good AI governance for charities. Let us know if there are other topics you'd like us to cover.
Embracing AI Thoughtfully for NZ Charities
Ready or not, AI is transforming the nonprofit sector. With 90% of charities (in the US at least) already using AI tools but 92% feeling unprepared, there's a clear need to build our sector’s confidence and capability. In a resource-constrained environment the efficiency gains from AI are appealing—but only if we can implement the technology thoughtfully and responsibly.
Understanding the Opportunities
So what really is the potential? AI can transform how we operate by making time-consuming tasks faster and more cost-effective. From drafting emails and taking meeting minutes to conducting research and creating knowledge bases, AI can free up valuable human resources (check out this guide). This allows your team to focus on what humans do best: building relationships, maintaining strategic direction, and making complex decisions that require emotional intelligence and ethical judgment.
Navigating the Challenges
While the benefits are compelling, it's important to understand AI's limitations. Large language models, which power AI tools, are essentially sophisticated pattern-matching systems trained on vast amounts of human-generated content. This brings several key challenges:
Accuracy: AI can confidently present incorrect information or even fabricate sources
Bias: AI systems can perpetuate existing societal biases present in their training data
Privacy: Many AI tools store and potentially use uploaded content for further training
The good news is that these challenges can be managed with thoughtful policies and practices, like ensuring there is always human oversight of AI-generated content, taking appropriate privacy precautions, and carefully vetting the security policies of AI tools you're considering.
Developing Your AI Approach
Here are key steps to help your organisation use AI effectively and responsibly:
Create an AI Use Policy: Establish clear guidelines for how and where your organisation will use AI. Consider using resources like TechSoup's AI Use Policy Template, or this guide from data.org as a starting point.
Invest in Understanding: Ensure your team understands AI's capabilities and limitations. Keep an eye out for local events and resources from people like Community Governance, Awhi World and The Institute of Directors.
Start Small: Begin with straightforward applications where AI can provide immediate value, such as draft writing or meeting summaries, while maintaining human oversight.
Stay Informed: AI technology is evolving rapidly. Regularly review and update your approach as new tools and best practices emerge.
Looking Ahead
While AI offers exciting possibilities, it's essential to approach it with both optimism and caution. Future considerations for the sector include addressing the digital skills gap, managing AI's carbon footprint, human rights considerations and ensuring Indigenous data sovereignty - we’ll be thinking and writing about these in the future. This technology is far from perfect, but I believe that, with the right knowledge and attitudes, we can shape it to be better and use it to create positive outcomes for our communities.
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