Free guide · For boards and executive directors

12 questions your nonprofit board should ask about AI

Sooner or later, someone at your board table will ask, "Are we using AI?" If you're the executive director, you may not know the full answer yet. If you're on the board, you may not know what to ask next. This guide gives you both: the questions, and what a good answer sounds like.

The short answer

Your board doesn't need to understand how AI works. It needs to ask good questions and approve a few clear rules. Start with these: Are we using AI now, and where? Who is in charge? What information never goes into it? Who checks the work? What has gone wrong, and what did we change? Then approve a short AI policy, name an AI lead, and ask three questions at every quarterly meeting.

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Why AI is a board question

It's tempting to treat AI as a staff tool, like a new printer. But AI touches the things your board is responsible for: the trust of the people you serve, their private information, your reputation and your money.

Board members already have a duty of care. Under Canada's federal nonprofit law, directors must act honestly and in good faith, and use the care a reasonably prudent person would use in the same situation (Canada Not-for-profit Corporations Act, s. 148). Provincial nonprofit laws set similar duties. As one Canadian charity lawyer put it in 2026, that duty includes overseeing operational risk, and AI now falls squarely into it (Charity Law Group). The same article notes that insurers are starting to ask AI questions when directors and officers insurance comes up for renewal.

Here's where Canadian nonprofits are today:

62%say they're aware of the reputational risks of AI
54%say they're aware AI can reinforce inequities
10%have a formal AI policy
29%already use AI for strategic work, most often governance or planning

Source: Imagine Canada and CCNDR, The State of AI Adoption in Canadian Nonprofits, January 2026. 963 organizations surveyed.

Look at that last number. AI may already be helping prepare your board package, summarize your minutes or draft your strategic plan. So these questions are for the board itself, too.

The 12 questions

You don't need to ask all twelve at once. Pick the three that worry you most for your next meeting. For each one, here's what a good answer sounds like, and what should make you ask more.

Where we are today

1Are we using AI now, and where?

Include the AI built into tools you already pay for, like your email, donor database or design software. Staff often don't think of those as "using AI".

Good answer"Here's our list. We asked staff, without blame, and checked our software."
Ask more if"I don't think so" or "Only a little," with no list.

2Who is in charge of it?

One named person should own AI day to day. They don't need to be technical. They need time and authority.

Good answerA name, a role, and time set aside for it.
Ask more if"Everyone" or "IT," with no one accountable.

3Do we have written rules, and who approved them?

A short AI policy, approved by you or the board, with a review date.

Good answer"Yes, approved in [month], next review in [month]."
Ask more if"We talked about it" or a long document nobody has read.
People and information

4What information goes into AI tools, and what never does?

The most important rule in any policy. Anything about a person, like the people you serve, donors or staff, should stay out of AI chat tools.

Good answerA simple rule staff can repeat, like a green, yellow and red traffic light.
Ask more if"We trust our staff to use judgment."

5Could AI ever decide who gets help, money or a job?

AI can sort, summarize and flag. A person should make every decision about a person.

Good answer"No. A person makes every decision, and we can explain how AI helped."
Ask more ifA tool "scores" or "ranks" clients, applicants or donors.

6Do we tell people when AI helped?

Donors, funders and the people you serve trust you more when you're open about it.

Good answer"Yes, in emails, reports and grant applications, and people can always ask for a person."
Ask more if"We'd rather not draw attention to it."
Tools and money

7Where does our data go?

Ask where each tool stores your data, whether the company uses it to train its AI, and who can see it. Our vendor questions guide lists what to ask.

Good answerWritten answers from each vendor, kept on file, with training on our data turned off.
Ask more ifStaff use free personal accounts for work.

8What does it cost, and what are we getting?

Not just the subscription. Staff time, training and checking all count.

Good answer"We measured how long the task took before, and we check again after."
Ask more ifBig promises of savings with no before-and-after.

9Can we switch it off, or leave?

Every tool and automation should have an owner and an off switch. You should be able to take your data with you.

Good answer"Yes. Here's who would do it, and how we'd get our data out."
Ask more ifAn automation runs on one staff member's login.
When things go wrong

10What's gone wrong so far, and what did we change?

Something will go wrong. A healthy answer is honest and specific.

Good answer"One near miss in June. Here's what we changed."
Ask more if"Nothing, ever." It usually means nobody is tracking it.

11If private information leaked, who would we tell, and how fast?

Privacy laws may require you to report some breaches. Your plan should already say who decides.

Good answerA named person, a written plan, and a log of every incident.
Ask more if"We'd figure it out at the time."
Our people

12Are staff trained, and how do they feel about it?

Some staff love AI. Some worry about their jobs. Both need to be heard.

Good answer"Everyone has had training and signed the policy, and we asked how they feel."
Ask more ifStaff learned it on their own and nobody has asked.

What the board should approve

After the questions, your board needs to make a few decisions. You can do it in one meeting.

  1. The AI policy. Short and in plain language. Our guide to writing one walks you through it.
  2. The AI lead. A name and a role.
  3. Your red lines. Things you will never do. For example: put personal information into AI chat tools, let AI decide alone who gets help, or send anything AI made without a person approving it.
  4. How much risk you're comfortable with. Pick one level, so staff know how far they can go without asking.
  5. A review date. Six months from now is a good start.
CarefulAI only for drafting and planning, with no personal information. Nothing inside your systems.
SteadyDrafting and planning, plus approved automations after a written privacy check, one at a time.
ReadyWider use across your systems, with a register of every tool and a quarterly board review.

Here's wording you can use in your minutes:

Moved that the board approve the [organization] AI Policy dated [date], name [name, role] as AI lead, adopt the red lines in the board brief, and review the policy by [date].

Three questions every quarter

Once the policy is in place, keep it short. Your AI lead can answer these in five minutes at each board meeting:

  1. What's new? Which AI tools or automations did we add, and who approved them?
  2. What went wrong? Any mistakes, complaints or near misses? What did we change?
  3. Are people OK? Are staff comfortable, and have the people we serve raised any concerns?

Once a year, ask for a one-page AI report: the tools you use, any incidents, training done, concerns raised, and changes to the policy.

If your board uses AI itself

Board work is often the most confidential work you do. Agree on a few rules for the board, too:

  • AI note-takers. Ask everyone first. Don't use them for in-camera sessions or when you discuss people, money problems or legal matters.
  • Board packages. Don't paste confidential board papers into free AI tools to summarize them.
  • Minutes. If AI drafts them, a person checks them, and the board approves them as usual.

What's changing in Canada

Canada still has no AI law for nonprofits. But a few changes are worth a line in your board's risk register:

  • A new federal privacy bill. Bill C-36 was introduced in June 2026. If it passes, people could ask for an explanation and a human review when an automated system makes a decision that seriously affects them (Gowling WLG).
  • Hiring in Ontario. Since January 1, 2026, Ontario employers with 25 or more employees must say in public job postings if they use AI to screen, assess or select applicants (Osler).
  • A Canadian standard. CAN/DGSI 101:2025 sets out how small and medium organizations, including not-for-profits, can use AI ethically. It's voluntary, but it's a useful yardstick as you grow (Standards Council of Canada).
  • National strategy. Canada's AI for All strategy promises free AI training for everyone and a Canada Trusted AI Certification for AI products (Government of Canada).
This guide is general information, not legal advice. Your board may want a lawyer to review your AI policy, especially if you handle health or children's information.

Reading for your board

If your board wants to go deeper, start here:

Questions people ask

Should AI be on our board agenda?

Yes, as a short standing item once you have a policy. Your AI lead answers three questions each quarter: what's new, what went wrong, and are people OK. It takes about five minutes.

Does our board need an AI expert?

No. Your board needs curiosity and good questions, not technical skills. If no one on the board feels confident, a shared free course or a short briefing is enough to start.

How often should the board review our AI policy?

Every six months while you're actively using AI, and at least once a year. AI tools change quickly, so the tool list and rules need regular updates.

Who should be our AI lead?

Someone with time, good judgment and the authority to say no. It doesn't have to be a technical person. In a small organization, it's often the executive director or an operations lead.

Can our board use AI to take minutes?

It can, with care. Ask everyone first, don't use it for in-camera or sensitive discussions, have a person check the draft, and approve the minutes as usual.

Is the board responsible if AI makes a mistake?

Directors have a duty to act with care, and AI is now part of the risks they oversee. A written policy, a named AI lead and regular reports show the board took reasonable steps. This is general information, not legal advice.

Free Board Brief

Bring this to your next board meeting.

Our free AI Policy Kit includes a two-page Board Brief with the red lines, the three risk levels, the quarterly questions and a ready motion, plus the policy itself.

Get the free kit →See AI Strategy & Readiness

Want someone to walk your board through it? We help nonprofits set their AI rules and plan what to try first, now or when they're ready. Book a Call →

The board doesn't need to know how AI works. It needs to know who's in charge.

Updated October 2026. This guide is general information, not legal advice. Written with AI assistance. Reviewed by a person.