Research and recommendations for effective, day-to-day nonprofit practice from ASU faculty, staff, students, and the nonprofit and philanthropic community.
Artificial intelligence is rapidly transforming how nonprofit organizations operate—from automating donor outreach to improving service delivery and analyzing program outcomes. But alongside these opportunities comes a new and evolving set of security and privacy risks that many nonprofits are not fully prepared to manage.
Why AI risk is different for nonprofits
Nonprofits occupy a unique position in the risk landscape. They routinely manage donor financial information, personally identifiable information (PII), health and social service data, and confidential program and grant records.
At the same time, many organizations lack dedicated cybersecurity teams or formal AI governance policies. This creates a gap between technology adoption and risk management, increasing exposure to both cyber threats and compliance issues.
70 to 76% of nonprofits lack a formal AI policy.
Why this matters: trust is everything
For nonprofits, a security or privacy failure is not just a technical issue—it’s a trust issue. A single incident involving donor or beneficiary data can undermine fundraising efforts, damage community relationships, weaken an organization’s reputation, and trigger legal and regulatory consequences. In a mission-driven sector, trust is one of the most valuable—and fragile—assets.
Top security risks
1. Data leakage through AI tools
AI platforms require users to input data to…
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Volunteer management is strategic investment in a nonprofit organization. Leaders must value the time and efforts volunteers contribute to an organization. As two nonprofit local leaders affirmed that without the help of volunteers, all the work towards the mission would not get done. Volunteers are a vital part in the nonprofit sector and directly impact the organization’s long-term sustainability.
Successful leadership approaches
Servant and transformational leadership approaches have proven to be effective in the nonprofit sector by increasing volunteer retention. Servant leaders exhibit the characteristics of putting volunteers’ needs before their own, building relationships, and appreciating volunteers for their effort. Transformational leaders encourage and empower people to take ownership in their given roles. These approaches create positive volunteer experiences and a space where volunteers desire to grow and remain at an organization.
Technology impact
The use of technology enhances nonprofit organizations by providing them a digital presence to communicate, share impact, and acknowledge the positive work happening for the community. Many nonprofit organizations use technology for record keeping and reaching a larger population to build more connections. Technology should not replace personal interactions, but used as a tool for nonprofit leaders to connect and enhance…
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Trust is an essential ingredient for nonprofits to be sustainable and successful. A 2025 survey found 57% of Americans highly trust nonprofits, though trust in specific organizations may vary. Public perceptions of how trustworthy your nonprofit is come from the good you do (mission) and how well you do it (accountability). While mission is the heart of every nonprofit, what does accountability entail?
Accountability should be thought of in two ways: accountability to whom and accountability for what. In terms of whom, three groups—funders, staff, and beneficiaries and communities—expect nonprofits to be accountable to them. Accountability for what includes finances and governance, which focus on compliance, and performance and mission, which are about demonstrating short and long term progress toward addressing social problems. Accountability can actually be made strategic by seeking and sharing information to help a nonprofit achieve its long-term goals.
Since the public expects higher ethical standards from nonprofits than commercial organizations, falling short on either accountability or mission can lead to diminished impact and organizational collapse. In the face of limited financial and human resources, how can nonprofit leaders balance accountability efforts and mission-focused work?
Assess trust levels
Making wise decisions about allocating resources to mission or…
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Small nonprofits sit at a powerful yet precarious point in the social sector. They are deeply woven into the communities they serve, often addressing needs that larger institutions overlook. Yet despite this proximity to impact, they remain the most underfunded and structurally disadvantaged segment of the nonprofit landscape. Data from Candid (2024) shows that small nonprofits make up more than 80 percent of the sector but receive less than 15 percent of total philanthropic dollars annually. This mismatch reveals a core tension: organizations doing some of the most meaningful community works are also the ones operating with the fewest resources. Understanding how to lead effectively under these conditions is crucial—not only for the organization's survival but also to ensure community-centered nonprofits keep advancing social change.
For smaller nonprofits, constraints are not simply financial—they shape staffing, infrastructure, planning, communication, and long-term stability. The CEO of a small nonprofit often juggles multiple roles: strategist, fundraiser, data manager, communications lead, and community advocate. Yet these challenges offer important leadership opportunities.
Three principles consistently strengthen a small nonprofit’s ability to navigate limited resources:
- Strategic transparency - Transparency is an asset, not an administrative…
Nonprofit organizations - once operated as volunteer-run grassroots operations - have become a significant part of mainstream society, growing faster than the private and public sectors as a percent of the total workforce in the U.S. External demands for accountability combined with contemporary social and economic barriers to success, have made the professionalization of the sector more necessary than ever.
Professionalization, which includes certifications and advanced degrees, benefits nonprofit organizations through improvements in strategy, innovation, and effectiveness - all of which contribute to an organizational culture that supports the needs of staff.
Workers in the sector are motivated by a desire to “do good” in society and therefore hold the passion and ambition to make improvements to systems and processes that create social change. Significant stressors exist, however, as revealed by the COVID-19 pandemic and continuing economic and political unrest. The intrinsic value of work in the nonprofit sector is challenged by increased cost of living and burnout from the growing demands on workers. Nonprofit organizations must therefore respond to support their workers and their career goals if they are to continue to deliver the high-quality, community-based solutions that the sector is known for.
But just as necessary as the community-based approach is to the success of a nonprofit, so too is the need…
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