Now is not the best time to be in the global aid sector. Governments across the rich world have slashed foreign aid budgets, abruptly leaving vulnerable populations around the world without access to their most vital needs including health care, food, and education. Philanthropy is stepping up, but the limited resources of funders will need to be stretched wider, and more efficiently.

At the very moment aid is contracting, artificial intelligence is expanding at exponential rates. Already reshaping economies and industries, AI holds profound promise for social impact, but only if the nonprofit sector can catch up to the pace of change. A recent whitepaper from Google.org and Fastforward argues that most nonprofits are years behind in technical capacity, struggling to deliver 21st-century solutions with 20th-century tools.

The authors layout a compelling argument for a philanthropic reset with three solutions that can help chart the path forward: future-proofing the nonprofit sector through investments in tech capacity; engineering radical cross-sector partnerships that connect funders, technologists, and frontline organizations; and deploying risk-tolerant capital strategically across the nonprofit tech lifecycle. Together, these shifts offer a blueprint not just for surviving this turbulent era, but for building a more resilient and equitable future where technology serves humanity’s most urgent needs.

1.) Future-proof the nonprofit sector through tech capacity

Future-proofing nonprofits starts with treating technology as essential infrastructure. Funders can make this tangible by lifting restrictions on “overhead” and allowing grants to cover basics like cloud storage, cybersecurity, and engineering staff. For example, Google.org’s Generative AI Accelerator gave nonprofits access to both funding and technical coaching, enabling organizations like Tarjimly to cut translation response times for refugees in half. Similarly, providing budget lines for Chief Technology or Innovation Officers ensures nonprofits have leaders who can steer digital strategy, while frontline training programs equip staff to use AI tools in their day-to-day work. These practical steps turn abstract digital ambitions into operational reality.

Equally important is creating space for nonprofits to innovate. Instead of tying every dollar to program outputs, the whitepaper suggests funders can build “opportunity budgets”, pools of flexible capital reserved for experimentation, into large grants. This allows nonprofits to test new tools, learn from failures, and adapt quickly. A case in point: CareerVillage used flexible support to expand its AI-powered career coach, reaching thousands of students with personalized guidance at scale. By funding both the infrastructure and the experimentation, funders can play a unique role in ensuring nonprofits not only catch up to the digital curve but build resilience to keep pace with future shifts.

2) Engineer radical cross-sector partnerships

No single nonprofit, tech company, or government agency can meet today’s global challenges alone. Radical cross-sector partnerships work when philanthropy brokers connections that turn technological breakthroughs into real-world impact.

For instance, Google.org and GiveDirectly joined forces with local governments to use Flood Hub, an AI-powered forecasting tool, to trigger cash transfers to families in Nigeria days before devastating floods. As a result, thousands of people could secure essentials and evacuate in time. Likewise, FireSat, a collaboration between Google Research, Earth Fire Alliance, Muon Space, and the Gordon and Betty Moore Foundation, is deploying AI-enabled satellites to detect wildfires within minutes, turning advanced science into a public good shared openly with first responders. These models show how philanthropy can knit together the right players to translate cutting-edge technology into life-saving systems.

Partnerships also thrive when nonprofits can leverage one another’s tools rather than reinventing the wheel. Karya, for example, built a platform that provides fair digital work while generating high-quality AI training data. By partnering with Digital Green in Kenya, they created agricultural models tuned to farmers’ languages and realities. Philanthropic funding bridged the gap between the tech backbone and local operations, making the collaboration possible.

3) Deploy risk capital strategically across the tech-nonprofit lifecycle

Deploying risk capital means funding bold ideas early and sustaining them through the full innovation cycle. The Gates Foundation provides a clear example with its backing of VectorCam, a nonprofit using AI-powered image recognition to help health workers identify malaria-carrying mosquitoes. The foundation has also partnered with Gavi, the Vaccine Alliance, which integrates AI and data science into vaccine distribution systems worldwide. By supporting initiatives from initial pilots through to scaled delivery, philanthropy can create a risk-tolerant space that allows innovation to flourish and ensures solutions reach the people who need them.

The authors suggest that capital is most powerful when blended with expertise and networks. Bloomberg Philanthropies demonstrated this by not only funding the AI nonprofit Visilant, which detects eye disease via smartphone images, but also pairing the team with Bloomberg journalists and venture advisors to refine storytelling and business models. That combination positioned Visilant to secure further investment and join Google.org’s Generative AI Accelerator.

The whitepaper concludes that philanthropy has a pivotal role to play in guiding how AI is harnessed for social good. And while the gains from strategic use of AI could leapfrog the philanthropy sector into the modern age, the authors warn: “that while the benefits of AI are unparalleled, we must also be cautious to ensure that AI is making the change we want to see.”

Ensuring equity means intentionally directing resources, tools, and training toward the communities and organizations that have historically been excluded from technological waves. Without such guardrails, AI risks reinforcing structural inequities. Equitable AI use requires embedding inclusion into every layer of philanthropy’s reset from funding local innovators to building governance frameworks that protect marginalized voices. The future of philanthropy will demand bold action and innovative thinking. When used strategically, AI can serve as a powerful tool to advance the sector.

You can learn more about ideas for a philanthropic reset from the whitepaper here.