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Tue Jun 16 2026

Viewpoint: AI best practices for fundraising and grants

Hello

When we run webinars or large meetings, we often ask attendees for a show of hand, virtual or otherwise, to indicate whether they are using Artificial Intelligence (AI). Most people say they are. However, a closer look usually reveals that this use is limited to tools such as ChatGPT for drafting marketing content, Canva for design, or Microsoft Copilot for desktop productivity tasks.

Far fewer participants are using AI directly to support fundraising, grant applications, or other core charitable activities. The key takeaway when we talk to our community is not whether charities will start using AI, but how they can make better and more strategic use of the AI tools they have already adopted.

Our AI Toolkit, has been created to identify funding opportunities, draft and refine grant applications, and strengthen your submissions, increasing your chances of securing funding. It’s a response to a major headache we know you all feel, a lack of time. By automating time-consuming administrative tasks, our AI toolkit can free up staff and volunteers to focus on what matters most: delivering meaningful impact in their communities.

Since it was launched, we’ve worked with many groups using the toolkit, and here are some of the things that we have found are important when using AI for fundraising and grants.

"Only use information that is already in the public domain when using open-access AI platforms."

"Only use information that is already in the public domain when using open-access AI platforms."

Human oversight 

Ensure that any AI content published, promoted or shared, is always reviewed by a human to check its quality, accuracy and legality. A process needs to be in place to ensure this and should be built into the plan. A similar human approach should be made to all grant applications made using AI, to ensure not just accuracy but to ensure the text truly captures the spirt of your organisation and community.   

Be mindful of varying attitudes

Whilst there are many benefits to using AI, there is also widespread wariness, confusion and sometimes outright opposition to its use. Data protection is typically the biggest concern, followed by issues around jobs, ethics, safeguarding and reputational damage. Be sure to ensure the benefits are made clear and vulnerabilities minimised. Be open in your communications and how you talk about your use of AI.

Use specific AI charity tools

Only use information that is already in the public domain when using open-access AI platforms. The Localgiving toolkit, has been designed just for charities and ensure your data is protected and secure. Open-access AI toolkits can offer significant risks around data confidentiality, accountability and cybersecurity. Be very careful when using them!

Involve the whole organisation

Anything new, can sometimes end up being championed by just a handful of individuals, but we would recommend that all the team are involved, or at least are aware of the use of this emerging technology. The board and/or trustees should fully assess the impact of AI, make clear who has responsibility, build in a process for dealing with complaints and offer organisation wide-training and compliance.

Transparency  

As you’ll know, trust and accountability are essential when it comes to fundraising. People don’t give if they aren’t convinced their money will go to right cause and make the impact they want. With AI being a new tool, it’s important to be transparent with your community about the use of it. Depending on how you intend to use it, a published AI policy might also be required.

Conclusion

These are just some things to keep in mind for your charity, CIC or community group when beginning your AI journey. AI cannot do everything for you, and any platform that claims otherwise is not being realistic. However, when used responsibly, AI can save time, reduce costs, and help organisations like yours to direct precious resources towards the work that makes the greatest difference. But always keep your data secure, consider what platforms you use, and always keep human oversight.

 --->  Get started with Localgiving’s AI Toolkit with our Free Preview Tier. 

Questions, queries or want to chat to one of our team? Contact us today. 

 More like this: Viewpoint: Why people, not just AI, remain at the heart of successful grant applications and How AI can work for even the smallest charities

Support and guidance: A step-by-step guide to our AI toolkit.

About Localgiving

Localgiving is a leading online fundraising platform and grant delivery partner, focused on supporting small charities, CICs, and community organisations. Since 2010, we’ve helped thousands of groups across the UK raise tens of millions of pounds and make a meaningful impact in their local communities.

Our platform offers an easy-to-use suite of powerful fundraising tools alongside AI-powered support for finding and applying for grants—equipping organisations with everything they need to grow and succeed.

We also collaborate with major partners, including National Grid and Scottish Power, to deliver corporate grant programmes and connect funding with the communities that need it most.

Join Localgiving today and unlock new opportunities to supercharge your fundraising.

---> Get started with Localgiving with our Free Preview Tier. 

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