AI Security for Nonprofits: Protecting Donor Data and Staying Compliant in Los Angeles

Artificial intelligence (AI) is transforming the nonprofit sector in Los Angeles. Tools like ChatGPT, Google Gemini, and Microsoft Copilot for Nonprofits are showing up in grant writing, donor communications, program management, and even volunteer coordination.

Used wisely, AI can help your nonprofit save time, increase productivity, and focus more on your mission. But without the right safeguards, it can also expose you to serious cybersecurity risks for nonprofits, putting donor trust, compliance, and your reputation at risk.

The Hidden Danger: Nonprofit Data Privacy

The real threat isn’t AI technology itself — it’s how nonprofit teams use it. Many staff and volunteers don’t realize that copying and pasting sensitive data into public AI tools can compromise nonprofit data privacy.

That data — whether it’s donor contact information, client records, or protected health details — can be stored, analyzed, or even used to train future AI models. Once shared, it may no longer be private.

In 2023, Samsung engineers accidentally leaked confidential source code into ChatGPT, creating such a major security breach that the company banned public AI tools altogether.

Now imagine an employee at your organization pasting donor financial records or youth program participant data into a public AI tool to “summarize” it. Without knowing it, they’ve just broken compliance rules — and possibly the law.

Emerging Threat: Prompt Injection Attacks

Hackers have found a new way to target nonprofits — a method called prompt injection attacks. This involves hiding malicious instructions inside emails, PDFs, transcripts, or even YouTube captions. When your AI tool processes that content, it can be tricked into revealing sensitive data or taking harmful actions.

In short, the AI becomes the attacker’s assistant — without realizing it.

Why Los Angeles Nonprofits Are Especially Vulnerable

Many local nonprofits:

  • Have no nonprofit AI usage policy in place
  • Rely on volunteers or minimal IT support
  • Operate with outdated technology and limited cybersecurity tools
  • Handle sensitive information that requires strict compliance — from HIPAA‑regulated health data to donor giving histories

Without clear guidelines, staff may use public AI tools as casually as they use Google — without realizing they’re creating major security risks.

4 Steps to Safer AI Use in Your Nonprofit

You don’t need to ban AI from your organization. Instead, you can use AI safely in nonprofits by following these steps:

  1. Create a Nonprofit AI Usage Policy
    Define approved tools, outline what information must never be entered into AI, and name a point person for AI‑related questions.
  2. Educate Staff and Volunteers
    Provide training on AI privacy risks for nonprofits, including prompt injection attacks.
  3. Use Secure AI Platforms
    Stick to secure AI tools for nonprofits like Microsoft Copilot for Nonprofits, which provide stronger privacy and compliance controls.
  4. Monitor and Manage AI Use
    Track which AI tools are being used and consider blocking public AI platforms on organizational devices.

Protect Your Donor Trust and Mission

AI is here to stay — and it can be a powerful ally for your mission when used responsibly. But ignoring the AI compliance risks for nonprofits could cost you donor trust, funding, and your reputation.

We can help your Los Angeles nonprofit create a cybersecurity plan and AI usage policy that keeps your mission safe, your donors confident, and your staff empowered to work efficiently.

Let’s make sure your nonprofit is using AI securely — so you can focus on what matters most: changing lives in Los Angeles. Book your call now.