Artificial Intelligence and the Third Sector: Are We Asking the Right Questions?

Artificial intelligence is already being used across the charity sector. The question is, whether organisations are using it strategically, responsibly, and effectively.

For many charities and NGOs, the first experience of artificial intelligence has been relatively straightforward: drafting documents, summarising reports, undertaking research, and developing communications.

These applications can save considerable amounts of staff time if used carefully. But they represent only the beginning of what AI could mean for the sector.

The next stage is not simply about using AI more. It is about identifying where AI can genuinely improve organisational performance and impact — and where human judgement must remain central.

Beyond Writing

AI can increasingly help organisations analyse large amounts of information, identify patterns in data, interrogate research, understand donor and stakeholder behaviour, automate administrative processes, and improve organisational knowledge.

For nonprofits this potentially changes the economics of many activities:

  • Small Organisations: Undertake analysis that previously required specialist staff or external consultants.

  • Programme Teams: Monitoring and evaluating data more effectively.

  • Fundraising Teams: Analyse indepth prospect information and funding trends at speed.

  • Senior Management: Test assumptions, examine scenarios, and challenge strategic thinking across all teams.

There is an important distinction between using AI to produce an answer and using AI to support a better decision. The latter is where much of AI’s real value lies.

Understanding the Risks

AI systems can produce convincing information that is nevertheless inaccurate. They can reproduce bias, misunderstand context, and provide answers without properly distinguishing between reliable evidence and weak information.

There are also significant questions around confidentiality, intellectual property, and personal data. This is particularly important for charities that hold information about donors, beneficiaries, employees, or vulnerable people. Entering sensitive information into an AI system without understanding how that information is processed, retained, or used creates significant governance and data-protection risks.

The Charity Commission has made clear that trustees remain responsible for decisions made by their charities. Critical decisions should therefore not simply be delegated to AI or based solely upon AI-generated advice. The Information Commissioner’s Office (ICO) similarly emphasises the need for organisations using AI with personal data to consider fairness, transparency, accountability, and risks to individuals.

AI is becoming a governance issue

This means AI can no longer be regarded simply as another piece of software. Boards and senior management should understand how AI is already being used within their organisations — because in many cases, staff may be using publicly available AI tools whether or not the organisation has formally adopted them.

At a minimum, organisations should consider:

  • Where AI can deliver meaningful organisational or beneficiary value.

  • What information can and cannot be entered into AI systems.

  • Which decisions require human oversight.

  • How AI-generated information will be checked.

  • Whether staff have sufficient skills to use these tools effectively.

  • How data protection, confidentiality, copyright, and reputational risks will be managed.

  • Whether an organisation-wide AI policy and clear lines of accountability are required.

The Charity Commission itself has suggested that charities consider whether an internal AI policy would be beneficial as adoption increases.

The Strategic Question

The organisations likely to gain most from AI will not necessarily be those purchasing the most sophisticated technology. They will be those that understand which problems they are trying to solve and why.

Charities should ask a fundamental question:

What are we currently doing that could be done significantly better, faster, or more intelligently — without compromising the judgement, trust, and human relationships on which our organisation depends?

That moves the discussion away from technology and towards organisational effectiveness. AI should not replace strategy, professional judgement, or human relationships. Used intelligently, however, it can strengthen all three.

For charities and NGOs facing growing demands, constrained resources, and increasing expectations around evidence and impact, that is where its real potential lies.

How Abbey Solutions can support your organisation

Abbey Solutions has recently been supporting charities and NGOs with their due diligence and governance processes. Understanding how to use AI in the best interests of your organisation, supporters, and beneficiaries is critical. Blindly using it to speed up processes will inevitably cause major issues down the road.

Need guidance on setting up robust AI governance or policy frameworks for your non-profit? Contact us today to discuss how we can support your strategic decision-making.