AI can write grant applications now. That’s not science fiction, it’s reality. And it’s raising an important question across the charity and nonprofit world: is it safe to use AI to apply for funding?
For charities already stretched thin on time and resources, the idea of having a tool that helps generate strong first drafts, simplify jargon, and reduce admin time is tempting. But there’s still hesitation. We hear it often: “Will funders disqualify us if we use AI?” “Is it dishonest?” “Are we risking the quality or integrity of our application?”
Thankfully, several major funders have shared their views on this, and they’re not as wary as you might think.
What The National Lottery Community Fund says
The UK’s largest community funder, The National Lottery Community Fund (NLCF), recently published guidance on using AI in funding applications.
Their position? Thoughtful and open. They make it clear that using tools like ChatGPT to draft your application is not automatically disqualifying. In fact, they explicitly won’t reject an application just because AI helped write it. What matters, they say, is that applications remain authentic. The language should reflect your organisation’s voice, and your answers should come from your real experiences and plans, not from what “sounds good” to an algorithm.
In other words: AI can help with the writing. But you need to supply the substance.
This mirrors how many of us already use AI in everyday work, like asking for a summary of meeting notes, or a first draft of a tricky email. It’s a tool. Not a replacement for thought, insight, or human judgement.
What the Lloyds Bank Foundation says
The Lloyds Bank Foundation shared a thoughtful position on AI in the charity sector, and while their statement is broader than just applications, they echo a similar message. They acknowledge the transformative potential of AI, especially for small charities and grassroots organisations, who are often left behind in digital conversations. They’re not warning charities against AI. They’re encouraging them to approach it ethically and transparently. Critically, they highlight the importance of inclusion and access. If AI helps level the playing field for small orgs who can’t afford external bid writers, that’s a positive. The foundation is exploring how to support fair and meaningful adoption of AI across the sector, not shut it down.
What the Esmée Fairbairn Foundation says
Esmée Fairbairn Foundation has also weighed in on the use of AI, both in how they operate and how they expect applicants to use it. In their recent update on AI use, they strike a tone that’s refreshingly practical: they’re not banning it, and they’re not ignoring it either.
For applicants, they’re clear: you can use AI, but please tell them if you do. It’s not a trick question, they just want transparency. They won’t judge you for using it, but they want to understand how you’re approaching it.
This reflects a growing recognition among funders: AI can be helpful, especially when used to reduce admin burdens or overcome language and confidence barriers. But trust and honesty are still the cornerstones of a strong funding relationship.
The Esmée Fairbairn Foundation also notes that they are not using AI for decision-making, and that’s an important distinction. While they might explore AI tools internally to improve their operations (like summarising documents), all funding decisions remain firmly in human hands.
Their message? Be open, use AI thoughtfully, and don’t lose sight of the human connection at the heart of funding.
So… Is it safe?
Short answer: Yes, if you use it wisely. Funders aren’t demanding that the sector avoids AI. They’re asking us to use it with integrity. And that makes sense. AI can be an incredible accelerator, helping charities focus more on the “what” and “why” of their mission, and less on how to fit their work into tight word counts or application templates. But it’s not magic, nor a shortcut to truth. It’s still up to you to tell your story. AI just gives you a bit of help along the way.
Our take at Fundin
At Fundin, we’ve built AI that’s specifically designed for writing and managing grant applications, so we’ve been asking these questions from the start. Our tools don’t “replace” fundraisers or write fantasy applications. Instead, they’re designed to help busy charity teams:
- Draft clear, funder-aligned applications faster
- Save time reformatting or rewriting the same information
- Focus more energy on strategy, partnerships, and delivery
We also make sure your applications have your voice. Our AI gathers information directly from your team so each bid reflects your values, your impact, and your way of working.
We’re encouraged to see funders engaging with this tech in a grounded, thoughtful way. It’s not about hype. It’s about access, clarity, and trust.
Final thoughts
If you’re wondering whether it’s okay to use AI in your next application, take this to heart: yes, just be honest, be human, and be clear about your goals. That’s what funders want to see. Want to see how AI can support your next bid? Book a free trial with us.
