Artificial Intelligence: Thoughts for Charity Trustees - Lambourn Junction Community Interest Company

Christian Noll, February 2025

Charity trustees have a big responsibility. They must ensure their organisations are well-run, financially stable, and making the greatest possible impact for their cause. Part of this duty involves being open to new ways of working, including adopting new technologies. Artificial intelligence (AI) is one such tool that has the potential to transform the way charities operate, making them more efficient and better able to meet their objectives. However, like any tool, AI needs to be used wisely to maximise its benefits and avoid potential pitfalls.

Trustees are legally required to act in the best interests of their charity. The Charity Commission outlines six key duties for trustees:

ensuring the charity delivers on its purpose,
complying with legal obligations,
acting in the charity’s best interests,
managing resources responsibly,
exercising reasonable care and skill,
ensuring accountability.

Keeping up with technological advancements, such as AI, falls under these responsibilities. By failing to explore modern tools that could improve efficiency and effectiveness, trustees risk missing opportunities to strengthen their charity’s impact.

From the Charity Digital Skills Report 2023:

Just over 1 in 4 (27%) are using AI. A similar number (26%) are not using it yet, but are planning to.
The majority of charities (78%) agree that AI is relevant to their charity and could transform it, yet 73% say they don’t feel prepared to respond to the opportunities and challenges it brings.
52% want to look into AI more but are constrained by lack of time, resources and skills, whilst 42% are trying to get colleagues to engage.
However, more than a third (35%) are already using AI for certain tasks.
Encouragingly, some charities are also taking action to improve their readiness for AI, with 30% improving data maturity, 26% exploring how to use AI strategically and 18% testing tools to develop knowledge and skills.
64% of large charities are currently using or plan to use AI in their day-to-day operations, compared to 44% of small charities. This indicates how AI could potentially create inequalities.

A useful way to think about how organisations operate, whether they are businesses or charities, is through the “People, Process, Technology” model. Successful organisations rely on these three elements working together.

People: staff, volunteers, and trustees must have the right skills to be able to perform their role.
Processes: the systems and workflows that make the charity function must be efficient and effective.
Technology: should support both people and processes, making tasks easier, faster, and more effective.

AI fits into this framework as a tool that can speed up tasks, improve decision-making, and provide valuable insights, helping charities make the most of their resources.

AI can be particularly useful in reducing the administrative burden on charities. It can assist with drafting policies, writing risk assessments, creating press releases, and even preparing funding applications. AI-powered tools can also help charities identify new funding opportunities by scanning available grants and matching them to the charity’s needs. Research is another area where AI can be beneficial, as it can quickly analyse best practices and emerging trends, helping charities learn from others and improve their services.

AI is particularly important for smaller charities that may not have the same level of resources as larger organisations when it comes to writing grant applications, setting out policies, researching sources of funding, and constructing budgets to support applications. Many small charities focus primarily on service delivery, with administrative tasks coming second. However, the effective use of AI can help these organisations operate more efficiently and compete for funding on a level playing field with larger charities. By leveraging AI, small charities can “punch above their weight,” improving their ability to secure financial support and ensuring their resources go further.

Importantly, large funding bodies such as the National Lottery Community Fund and the Wellcome Trust accept applications that have been drafted using AI. This demonstrates that AI-generated content is becoming more widely recognised in the charity sector. However, funders advise that AI should be used to assist in the drafting process rather than replace human input entirely. Charities still need to ensure that applications reflect their own voice and accurately represent their work.

As with any tool, AI must be used responsibly. A useful analogy is a kitchen knife—it can save time and effort when used correctly, but if misused, it can cause harm. The same applies to AI. To use it effectively, trustees and staff need proper training. They must understand what AI can and cannot do and learn how to structure their queries to get the best possible results. They also need to be careful with data, ensuring that no personal or sensitive information is entered into AI systems. Additionally, AI tools are not perfect and may reflect biases present in the data they have been trained on, so users must remain critical of the outputs they generate.

To ensure AI is used effectively and ethically, charities should consider developing an AI policy. This policy should outline how AI will be used within the organisation, what training will be provided, and what safeguards will be in place to prevent misuse. It should also include guidelines on data protection and ethical considerations, ensuring that AI supports the charity’s mission without compromising integrity or trust.

As AI becomes increasingly embedded in organisations across all sectors, charities that fail to adopt it may find themselves left behind. Those who embrace AI as a tool to enhance their work will be better positioned to compete for funding, streamline their operations, and ultimately serve their beneficiaries more effectively. With the right approach, AI can be a game-changer, helping charities make a bigger impact with fewer resources and ensuring they remain competitive in an increasingly digital world.