Blog: AI in the third sector - investment can no longer be deferred
Olaide Olunloyo FCCA, Head of Finance - Jesus House
The not-for-profit sector has always led with purpose. The question now is whether we are can lead with the technology tools that this purpose demands, says Olaide Olunloyo FCCA
What we finance professionals in the public sector all have in common is firm commitment and good intentions. But while we are here to serve people and respond to their needs, this purpose does not remove pressure. We need to have good systems behind us. Passion may start the work, but structure sustains it.
As a professional accountant working in a not-for-profit organisation operating across areas including faith, community support, housing, education, youth development and social impact, I see no shortage of commitment. We are not short of people who need support, but we are also not short of people who care deeply about the work.
However, what we are often short of is capacity. And that is where the conversation about AI becomes real for me.
Inaction is not an option
For many not-for-profits, AI can sound like something happening somewhere else - in large corporates or organisations with big transformation budgets. In leadership teams across the public sector, the conversation often follows a familiar arc: the need for AI is raised; someone notes the potential; someone else raises the cost; a third voice mentions the complexity; and the agenda moves on.
I understand that hesitation. But when I look at the context, the possible use cases are not abstract at all.
Reports need writing. Data needs interpreting. Funders want evidence of impact. Policies need reviewing. Staff are stretched. Leaders are trying to make good decisions with limited resources.
So, for me, the question is not whether AI is fashionable; it is whether we can afford to ignore tools that will help us use our time, insight and resources more effectively.
Our organisation is still at the beginning of the AI journey. We are not a finished example of AI adoption, but that is precisely why I think the experience is useful. Many not-for-profits are not starting from a place of confidence. They are starting with financial constraints, stretched teams, competing priorities and genuine questions about risk.
That is a valid starting point. AI adoption does not have to begin with a grand strategy. It can begin by identifying where pressure is greatest – that is, where skilled time is being lost, manual tasks are being repeated, information is not being used well, and where funder, trustee and stakeholder expectations are growing faster than internal capacity.
Proceed with caution
But this is also where caution matters. AI can:
• organise information but not carry responsibility
• produce a draft but not understand the sensitivity of safeguarding concerns
• analyse trends but not replace judgment
• support efficiency but not define mission.
AI adoption cannot simply be left to whoever is most excited about technology.
For not-for-profit organisations, AI is not just a digital issue but also a stewardship issue. It touches value for money, internal controls, confidentiality, risk, data protection, staff capacity, board assurance and public trust.
The way forward for most is to start small and govern it properly. A few tips in this regard:
• Choose one process.
• Be clear about the problem.
• Set boundaries around data and confidentiality.
• Keep human review in place
• Train staff to question the output..
• Measure whether it genuinely improves the work.
The risk though is that some organisations will rush into AI without thinking it through, while others will avoid it completely because it feels too complicated or costly. Neither is good enough. Careless adoption could damage trust, but passive avoidance could hold back impact.
The real opportunity within the sector is not to become AI-led organisations but to become more thoughtful, responsive and sustainable ones.
The mission remains the anchor. But we have to be honest enough to ask whether our current ways of working are giving that mission the support it deserves.
Olaide Olunloyo FCCA, Head of Finance - Jesus House