By Lauren Bickham, Assistant Vice President and Fund Director at Black Onyx Management
Artificial intelligence isn’t just transforming how nonprofits operate—it’s expanding their potential. Nearly two-thirds of nonprofits now use AI—organizations of all sizes find it accessible and are identifying practical ways to incorporate it into their work. Additionally, philanthropy is making unprecedented investments to ensure AI’s transformative power benefits the organizations tackling society’s most pressing issues.
A $500 MILLION BET ON AI FOR IMPACT
In October, ten of America’s most influential foundations—including MacArthur, Ford, Omidyar Network, Mellon, and Packard—announced Humanity AI, a $500 million initiative dedicated to ensuring AI delivers for people and communities. The coalition will begin aligned grantmaking this fall, with pooled grants starting in 2026.
This represents a fundamental shift: philanthropy is moving from cautious observation to active investment in AI as a force multiplier for social impact.
HOW FOUNDATIONS ARE SUPPORTING AI ADOPTION
The sector is recognizing that nonprofits shouldn’t navigate AI alone. Yet a significant opportunity exists: while capacity building is common in philanthropy, a 2025 study by the Center for Effective Philanthropy found that nearly 90% of foundations don’t yet offer AI implementation support to grantees. This gap is changing rapidly as leading foundations demonstrate what’s possible:
Capacity Building Grants: KPMG Foundation committed $6 million to help nonprofits integrate AI into operations. GitLab Foundation offers $250,000 grants plus six months of technical support from OpenAI engineers, API credits, and peer learning networks.
Skills Development: The AI for Nonprofits Sprint aims to bring 100,000 nonprofit staff to baseline AI literacy in 2026. Microsoft, OpenAI, and others have launched free training specifically designed for nonprofit professionals.
Collaborative Funding: Foundations increasingly favor multi-partner proposals that bring together nonprofits, universities, and tech organizations—sharing both resources and expertise.
Infrastructure Investment: The National Science Foundation is investing over $700 million annually in AI research, with increasing focus on AI ethics, digital equity, and applications for social good.
WHAT FOUNDATIONS WANT TO SUPPORT
When foundations evaluate AI-inclusive proposals in 2026, they’ll be looking for organizations that demonstrate:
- Mission Alignment: How does AI amplify your impact rather than simply automate tasks?
- Responsible Implementation: What safeguards ensure AI enhances rather than replaces human judgment and relationships?
- Equity Focus: How does your approach address bias, ensure transparency, and promote digital equity?
- Sustainability: Who maintains and improves the AI system beyond the grant period?
- Data Stewardship: What governance protects the communities you serve?
- Learning Orientation: How will you share what works (and what doesn’t) with the sector?
These aren’t barriers—they’re guideposts for maximizing AI’s positive impact while minimizing potential harms.
THREE WAYS TO EXPLORE AI’S POTENTIAL FOR YOUR MISSION
You don’t need technical expertise or a big budget to start exploring AI for your organization. Here’s how to get started:
- FOCUS ON PROBLEMS, NOT TOOLS
Where does your staff spend time on repetitive tasks instead of high-value work? Where could personalization improve outcomes but seems impossible at scale? What data could inform decisions but remains unused? These questions identify AI’s most valuable applications for your organization. - TAP INTO FREE SUPPORT
The sector is investing heavily in making AI accessible. Free training through Microsoft Learn’s AI Skills for Nonprofits, OpenAI Academy, and IBM SkillsBuild can boost your team’s confidence. Many offer certificates that demonstrate growing expertise. - JOIN LEARNING COMMUNITIES
The Technology Association of Grantmakers is launching learning exchanges for organizations developing AI strategies. Fast Forward and other intermediaries connect AI-powered nonprofits for peer learning. You don’t have to figure this out alone.
THE OPPORTUNITY AHEAD
Philanthropy is making a bold bet: that AI, when used responsibly and equitably, can help nonprofits achieve breakthrough impact on society’s most difficult challenges. With $500 million in new funding starting in 2026, along with comprehensive training and technical support, the sector is creating an unprecedented opportunity for mission-driven organizations.
The question isn’t whether AI will change social impact—it’s how your organization can help shape that change in ways that boost your mission and benefit your community.
PARTNERING FOR AI-ENHANCED IMPACT
Black Onyx Management assists nonprofits in exploring and clearly articulating how AI can enhance their impact. Whether you’re thinking about your first AI implementation or creating a detailed strategy, we combine philanthropic insight with technical knowledge to support you:
- Discover high-value AI applications aligned with your mission and capacity
- Develop compelling narratives that show foundations how AI amplifies your impact
- Design responsible implementation frameworks that protect the communities you serve
- Build proposals that position your organization for AI-inclusive funding
- Create strategic plans that integrate AI thoughtfully into your theory of change
The foundations investing in AI aren’t just funding technology—they’re investing in organizations ready to reimagine what’s possible. We help you become one of them.
Contact Black Onyx Management to explore how AI can expand your impact and how we can help you communicate that vision to funders. Visit blackonyxmanagement.com or contact lauren@blackonyxmanagement.com.
