Debunking the biggest myths about AI in grantmaking
Plus, how the right tools can help your organization deliver efficiency and equity.
For today’s foundations, the pressure is real. More applications, fewer staff, growing reporting demands, and rising expectations around equity make it harder than ever to keep grantmaking processes both efficient and fair.
Many leaders see potential in AI, but are cautious. They’ve heard the hype, read the headlines, and wonder if AI really delivers on its promise without sacrificing human judgment.
The truth: AI, when built for philanthropy, can be a reliable resource. Bonterra’s AI-powered Grantmaker is designed with funders in mind: Ethical and purpose-built to simplify reviews, reduce bias, and expand reach. Let’s explore five common myths about AI in grantmaking and what the reality means for foundations navigating this new frontier.
Myth 1: “AI will replace human judgment.”
Reality: It’s true that some AI tools attempt to replace human judgment, which raises valid concerns. But ethically built AI is designed to assist, not decide. It quickly scans applications, identifies patterns, and surfaces potential opportunities that reviewers may not spot immediately.
With ethical AI tools, the final call always rests with staff, who bring empathy, context, and mission alignment into the equation. Think of AI as a high-powered research assistant: It quickly gives you more information, but you still decide how to act.
Grantmaker in action
Grantmaker uses AI to surface aligned nonprofits and highlight proposal strengths, while reviewers stay in full control. Its smart matching function connects funders with 180,000+ vetted nonprofits.
Myth 2: “AI introduces more bias.”
Reality: Done poorly, AI can reinforce bias. Done right, it can help reduce it.
Bias often creeps into grantmaking when reviewers introduce their own perspectives, experiences, and networks into the process in ways that extend beyond the established scoring rubric. AI designed with equity in mind, however, makes the process more consistent, standardizing how proposals are scored, flagging inconsistent reviews, and helping funders expand beyond familiar grantees.
With human oversight, AI becomes a powerful driver of equity rather than a threat to it.
Grantmaker in action
Bonterra’s AI models are trained on 640M+ interactions from across the social good sector. This allows funders to use standardized, equity-centered review processes and uncover nonprofits that share their priorities, even those outside existing networks.
Myth 3: “AI reduces transparency.”
Reality: When built with intention, transparency is one of AI technology’s greatest strengths.
Many see AI as a “black box” spitting out answers without context. But the most effective tools are built to reflect the standards funders themselves define in their scoring rubric. That means funders stay in control of the criteria, and AI simply organizes and applies those standards consistently. The result is clarity you can share with boards, staff, and grantees, showing not just the outcome of a decision but how and why it was made. Transparency builds trust across all stakeholders.
Grantmaker in action
Grantmaker shows how each proposal aligns with your mission, geography, and funding priorities, helping reviewers and boards see not just what decision was made, but why.
Myth 4: “AI will cut corners in the review process.”
Reality: AI reduces administrative fatigue, not rigor.
The right AI tools won’t eliminate critical review steps — they’ll streamline them. By summarizing lengthy applications, highlighting missing information, or pointing out inconsistencies, AI gives you more time for what matters: meaningful engagement with nonprofit applicants and grantees. This technology allows funders to direct their energy to thoughtful evaluation, meaningful dialogue with grantees, and more informed funding decisions that create lasting change for nonprofits and the communities they serve.
Grantmaker in action
Grantmaker uses AI to lighten administrative load while ensuring every decision is grounded in thoughtful human review.
AI for the greater good
AI, when built for philanthropy, offers more equitable and efficient grantmaking. It accelerates workflows, reduces bias, and expands discovery while protecting human oversight.
With more than a decade of experience building ethical AI for the social good sector, Bonterra has developed solutions that funders can trust — tools that are transparent, explainable, and designed to respect the values at the heart of philanthropy.
How AI can help your organization
The myths don’t hold up, but your opportunities with AI do. Download our free resource, 5 steps to make your grantmaking more efficient and equitable, for a practical checklist to assess your current processes and see where Bonterra Grantmaker can help.
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