AI in Funding Applications: What’s Next?

In a recent article, “Using AI in funding applications,” we explored how AI can be used in funding applications, reflecting on guidance from the National Lottery Community Fund. Since then, the Community Fund has produced a new document, AI principles — Our 10 principles of AI.

They’re also inviting charities, funders, and community groups to a free online event on 11 March (In Conversation: Introducing our 10 AI Principles for the benefit of people and communities) to discuss AI’s role in the sector. So, what does this all mean for those of us using AI in funding applications?

AI: A Growing Opportunity for Charities

AI is already transforming how charities work, helping with everything from writing funding applications to improving accessibility. According to the 2024 Charity Digital Skills Report, 61% of charities already use AI. However, another report—The Status of UK Fundraising 2024 Benchmark Report—found that nearly 70% of charity professionals feel they lack the resources to explore AI properly.

This highlights a real gap in skills, confidence, and capacity—and it’s precisely why The National Lottery Community Fund is stepping in with guidance, principles, and an open conversation about AI’s role in the sector.

The National Lottery’s 10 AI Principles

As AI becomes more part of our daily lives, The National Lottery Community Fund has 10 principles to guide responsible and ethical AI use:

1. AI works for people – not instead of people.
2. Always have a human in the loop – use AI with human oversight.
3. Be accountable – transparency is key.
4. Share learning – we will share successes and failures to help the sector learn.
5. Be inclusive – avoid bias and equitable outcomes.
6. Be efficient – AI should make things smoother and better.
7. Measure AI’s impact – know when AI is helping and when it isn’t.
8. Consider the environment – use AI meaningfully and sustainably.
9. Be open – share AI work and adapt as needed.
10. Protect privacy – AI use must comply with GDPR and data protection rules.

These principles mean AI should support, not replace, human work.

Final Thoughts

AI is here to stay and when used well it’s a great tool for charities and community groups. The National Lottery Community Fund’s new guidance and AI principles give a clear direction for making the most of AI while keeping ethics, transparency, human expertise at the top.

If you want to find out more, I’d recommend attending the free online event on 11th March and checking out The National Lottery Community Fund website . Let’s keep the conversation going and make sure AI is used for the good of our communities and churches.

Read the full guidance and register for the event on The National Lottery Community Fund website.