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    Foundation Technology Requirements: What Grantmakers Want to See

    The landscape of foundation funding is shifting rapidly as grantmakers increasingly expect nonprofits to demonstrate technological capacity and AI readiness. Understanding what foundations are looking for in 2026—from operational readiness to measurable outcomes—can make the difference between a competitive application and one that falls short. Whether you're applying for technology-specific grants or general operating support, knowing how to articulate your organization's digital maturity and strategic approach to AI implementation is becoming essential for fundraising success.

    Published: February 04, 202612 min readFundraising & Development
    Foundation technology requirements and grantmaker expectations for nonprofit AI capacity

    The foundation sector has reached a tipping point in its relationship with technology. Ten major foundations—including MacArthur, Ford, Omidyar Network, Mellon, and Packard—announced the Humanity AI initiative in 2025, committing $500 million to AI-related work with pooled grants beginning in 2026. OpenAI's People-First AI Fund pledged $50 million to support nonprofits working at the intersection of innovation and public good, providing $40.5 million in unrestricted grants to 208 nonprofits across the United States. This represents more than just generous giving; it signals a fundamental shift in how foundations evaluate organizational capacity and potential for impact.

    For nonprofit leaders preparing grant applications, this shift creates both opportunity and pressure. Foundations are no longer treating technology as a "nice to have" line item in capacity building budgets. Instead, they're evaluating how well organizations understand and leverage technology as a strategic tool for mission delivery, operational efficiency, and long-term sustainability. The question is no longer whether your nonprofit uses technology, but how thoughtfully, strategically, and responsibly you're integrating it into your work.

    This evolution affects all types of grant applications, not just technology-specific requests. Whether you're seeking funding for program expansion, capacity building, or general operating support, foundations are looking for evidence that your organization can operate effectively in an increasingly digital and AI-enabled environment. Understanding what grantmakers expect to see—and how to demonstrate your readiness—has become essential for competitive fundraising.

    The stakes are particularly high as many nonprofits face economic uncertainty and shifting federal funding priorities. Organizations that can articulate a clear, strategic approach to technology adoption position themselves as forward-thinking, efficient, and capable of maximizing impact with foundation resources. Those that fail to address technology capacity may find themselves at a disadvantage, regardless of the strength of their programmatic work.

    The Changing Foundation Landscape in 2026

    Foundation priorities are shifting from viewing technology as a cost center to recognizing it as essential infrastructure for nonprofit effectiveness and sustainability.

    Major Funding Initiatives Reshaping the Sector

    Understanding the scale and focus of new technology-oriented philanthropy

    The Humanity AI initiative represents more than financial commitment—it signals how major foundations are thinking about the role of AI in the social sector. These funders are prioritizing work that ensures AI enables human flourishing, minimizes risk, and maximizes benefit. They're looking for nonprofits that can navigate the complexity of AI implementation while maintaining focus on equity, transparency, and community impact.

    Similarly, the GitLab Foundation's $250,000 grants come with six months of technical support from OpenAI engineers, API credits, and peer learning networks. This model reveals what foundations increasingly expect: not just that you'll use technology, but that you'll engage in ongoing learning, share insights with peers, and build lasting technical capacity within your organization.

    • Pooled collaborative funding models signal long-term, sector-wide investment rather than one-off technology grants
    • Technical assistance bundled with funding demonstrates foundations' recognition that money alone doesn't guarantee successful technology adoption
    • Peer learning requirements reflect the understanding that nonprofit AI literacy benefits from shared knowledge and collaborative problem-solving

    From Capacity Building to Strategic Enablement

    How foundation language around technology has evolved

    The shift in foundation language is telling. Where applications once asked about "technology needs," they now inquire about "digital transformation strategy." Instead of requesting line-item budgets for software purchases, they ask how technology investments align with strategic priorities and enable mission delivery at scale. This evolution reflects a maturing understanding of technology's role in nonprofit effectiveness.

    Community foundations, in particular, are recognizing technology as one of the most important avenues to nonprofit growth and sustainability. They're adjusting grantmaking processes to allow nonprofits to invest in technologies that enable them to grow and maximize impact, rather than restricting technology funding to specific, narrowly defined projects. This creates both opportunity and responsibility for grant applicants to think strategically about technology requests.

    The Skills Development Imperative

    Why AI literacy has become a foundation priority

    The AI for Nonprofits Sprint aims to bring 100,000 nonprofit staff to baseline AI literacy in 2026. Microsoft, OpenAI, and other technology companies have launched free training specifically designed for nonprofit professionals. These initiatives reveal foundation awareness that most nonprofit staff lack formal AI training and need structured support to develop competency.

    KPMG Foundation's $6 million commitment to help nonprofits integrate AI into operations emphasizes not just tool adoption but organizational change management. Foundations understand that technology implementation requires cultural shifts, workflow redesign, and sustained learning—not just software licenses. Applications that acknowledge this complexity and outline plans for building lasting capacity are increasingly competitive.

    What Foundations Expect to See in Grant Applications

    Successful applications demonstrate operational readiness, strategic thinking, and clear connections between technology investments and mission impact.

    Operational Readiness and Technical Capacity

    Demonstrating your organization's ability to implement and sustain technology effectively

    Foundations expect applicants to demonstrate capacity to adopt and use new technology effectively. This doesn't mean you need a large IT department, but you do need to show how you'll manage implementation, provide user support, maintain systems, and address technical challenges as they arise. For many smaller organizations, this might mean partnerships with technology providers, consultants, or peer organizations rather than in-house expertise.

    Applications should address who will oversee technology implementation, what skills they bring, and how your organization will develop additional capacity over time. If you're requesting funding for AI tools, explain how staff will learn to use them effectively and who will champion adoption across the organization. Foundations want to see realistic assessments of your current state and thoughtful plans for building capability.

    • Identify specific staff roles responsible for technology oversight and implementation
    • Outline training plans for staff who will use new technology
    • Describe support systems (consultants, peer networks, vendor support) that complement internal capacity
    • Address how you'll maintain and upgrade systems beyond the grant period

    Clear Use Cases and Mission Alignment

    Connecting technology investments to strategic priorities and community impact

    Generic statements about "improving efficiency" or "modernizing operations" won't differentiate your application. Foundations want specific use cases that show you understand how technology will transform particular aspects of your work. Describe the current challenge, explain why existing approaches fall short, and detail how the proposed technology addresses the gap in ways that advance your mission.

    Strong applications demonstrate mission alignment by showing how technology enables you to serve more people, improve service quality, reach underserved communities, or operate more sustainably. For example, rather than simply requesting funding for a new CRM system, explain how it will enable personalized donor stewardship that increases retention and supports long-term financial stability—which in turn enables expanded program services to your community.

    When discussing AI specifically, foundations are particularly interested in applications that address equity, accessibility, and responsible implementation. Show that you've considered how AI tools might introduce bias, how you'll ensure they benefit rather than exclude vulnerable populations, and how you'll maintain human judgment and relationships even as you automate certain tasks. This demonstrates sophisticated thinking that foundations value.

    Realistic Implementation Plans with Milestones

    Showing you've thought through the practical steps from funding to impact

    Foundations respond positively to applications that outline realistic implementation timelines with clear milestones. Break down how you'll move from grant award to full implementation, identifying key decision points, potential challenges, and how you'll adapt if things don't go as planned. This shows project management capacity and realistic expectations about technology adoption.

    Strong plans acknowledge that technology implementation rarely goes smoothly. They build in time for learning, adjustment, and course correction. They identify specific success indicators at different stages—not just final outcomes but interim milestones that demonstrate progress. This gives foundations confidence that you can manage complex projects and will communicate honestly about challenges and adaptations along the way.

    • Phase implementation with clear milestones (e.g., vendor selection, pilot testing, staff training, full rollout)
    • Identify potential obstacles and mitigation strategies
    • Build in learning periods and opportunities for adjustment
    • Describe how you'll gather feedback from users and make iterative improvements

    Measurable Outcomes and Impact Metrics

    Defining success in ways that demonstrate both operational improvement and mission advancement

    Foundations prioritize applications that outline measurable outcomes and explain how you'll track progress. These metrics should include both operational measures (e.g., time saved, processes streamlined, data quality improved) and mission-related impacts (e.g., more people served, better outcomes achieved, increased community reach). The strongest applications connect these two levels, showing how operational improvements enable greater mission impact.

    Be specific about what you'll measure and how. Rather than vague commitments to "track effectiveness," describe the specific data you'll collect, the tools you'll use to analyze it, and the benchmarks that will indicate success. Explain how you'll use this data not just for reporting to the foundation but for your own continuous improvement and strategic decision-making. This demonstrates a commitment to measuring and adapting based on data, which foundations value highly.

    Don't just propose metrics that make you look good—include measures that will reveal challenges and areas for improvement. Foundations appreciate applicants who commit to honest assessment and learning, not just success reporting. This transparency builds trust and demonstrates organizational maturity.

    Demonstrating Strategic Technology Thinking

    Moving beyond tactical requests to show how technology enables long-term sustainability and mission growth.

    The strongest grant applications don't treat technology as an isolated project but as part of broader organizational strategy. They connect technology investments to strategic planning processes, showing how digital capabilities enable the organization to achieve multi-year goals and adapt to changing circumstances. This strategic framing demonstrates sophisticated leadership thinking that foundations seek in their grantee partners.

    Integration with Organizational Strategy

    Showing how technology supports strategic priorities and long-term vision

    Reference your strategic plan explicitly in grant applications, showing how technology requests align with identified priorities. For example, if your strategic plan calls for expanding services to rural communities, explain how telehealth platforms or remote case management tools directly enable that expansion. If your strategy emphasizes financial sustainability, show how operational efficiency gains from AI automation reduce costs and enable mission investment.

    This connection between technology and strategy demonstrates that you're not chasing trendy tools but making deliberate investments aligned with board-approved direction. It shows that technology decisions have executive leadership and governance support, which gives foundations confidence in sustainable implementation.

    Building Lasting Organizational Capacity

    Demonstrating commitment to sustainable technology adoption beyond the grant period

    Foundations increasingly view themselves through a capacity lens, and they respond positively to nonprofits that do the same. Rather than requesting one-time technology purchases, frame your request as capacity building that will benefit the organization for years to come. Explain how staff skills development, process redesign, and systems implementation create lasting capability that extends far beyond the specific grant period.

    Address sustainability explicitly: How will you maintain and upgrade technology after grant funding ends? What skills will staff have developed that they'll carry forward? How will the organizational culture around data and technology shift in lasting ways? These questions show you're thinking beyond the immediate project to long-term institutional change.

    • Describe how skills developed during implementation will transfer to other organizational contexts
    • Outline budget plans for ongoing technology costs (subscriptions, maintenance, upgrades) after grant period
    • Explain how documentation and knowledge sharing will preserve institutional learning
    • Identify cultural shifts around data-driven decision making that will persist beyond initial implementation

    Collaborative and Sector-Engaged Approach

    Showing commitment to peer learning and sector-wide knowledge sharing

    Foundations increasingly favor multi-partner proposals that bring together nonprofits, universities, and tech organizations. Even if you're applying individually, demonstrate awareness of sector-wide efforts and commitment to collaborative learning. Mention participation in peer networks, willingness to share findings with other nonprofits, or connections to technology assistance programs that serve your sector.

    This collaborative framing positions your work as contributing to broader sector knowledge, not just your individual organization's capacity. It shows you understand that nonprofits benefit from shared learning about what works in technology adoption. Foundations appreciate applicants who will advance collective knowledge, not hoard insights for competitive advantage.

    Common Application Pitfalls to Avoid

    Understanding what weakens technology grant applications helps you position your organization more effectively.

    Overpromising or Underestimating Complexity

    The dangers of unrealistic timelines and oversimplified implementation plans

    One of the most common weaknesses in technology grant applications is underestimating the time, resources, and organizational change required for successful implementation. Applications that promise rapid deployment without acknowledging learning curves, integration challenges, or change management needs raise red flags for experienced program officers who understand technology adoption realities.

    Be honest about complexity and the learning process your organization will undertake. Foundations would rather fund realistic plans that acknowledge challenges than overly optimistic proposals that will likely disappoint. Showing awareness of potential obstacles and how you'll address them demonstrates project management maturity that foundations value.

    • Build realistic timelines that account for vendor selection, contract negotiation, data migration, training, and adjustment periods
    • Acknowledge that staff adoption takes time and plan for ongoing training and support, not just initial orientation
    • Recognize that systems integration often reveals unexpected challenges that require problem-solving and adaptation

    Technology for Technology's Sake

    Failing to connect tools to mission impact and strategic priorities

    Applications that focus primarily on tools and features without clearly connecting them to mission outcomes and strategic goals tend to fall flat. Program officers want to understand why this particular technology matters for your particular mission at this particular moment—not just that it's impressive or cutting-edge.

    Every technology request should answer: What mission impact becomes possible with this tool that isn't possible without it? How does this enable you to serve your community more effectively? What strategic priorities does this support? If you can't clearly answer these questions, you may need to reconsider whether the technology request is truly strategic or simply aspirational.

    Inadequate Attention to Data Privacy and Ethics

    Overlooking critical governance and responsibility considerations

    As foundations become more sophisticated about AI and data-driven tools, they're increasingly asking about privacy protections, bias mitigation, and ethical governance. Applications that don't address these considerations—particularly when requesting funding for AI tools or systems that handle sensitive personal information—appear naive about the responsibilities that come with technology adoption.

    Explain how you'll protect data privacy, ensure algorithmic fairness, maintain transparency with those you serve, and address stakeholder concerns about AI use. Demonstrate that you've developed or are developing appropriate policies and protocols for responsible technology use. This shows maturity and values alignment that foundations seek in their partners.

    Ignoring the Human Element

    Forgetting that successful technology adoption is fundamentally about people and culture

    Applications that focus exclusively on systems and software while neglecting the human dimensions of change management tend to be less competitive. Foundations understand that technology implementation fails most often due to people challenges—staff resistance, inadequate training, poor change management—not technical limitations.

    Address how you'll support staff through the transition, how you'll maintain the human relationships and judgment that define your mission even as you automate certain tasks, and how you'll ensure technology serves people rather than the other way around. This attention to the human element demonstrates understanding that technology is a means to mission impact, not an end in itself.

    Preparing Your Organization for Technology Grant Applications

    Practical steps to strengthen your readiness and competitiveness for foundation technology funding.

    Strengthening your technology grant applications starts well before you sit down to write. Organizations that are most competitive have done foundational work to assess their current state, clarify their technology strategy, and build basic capacity for implementation. This preparation allows you to write with confidence and specificity about what you need, why you need it, and how you'll use it effectively.

    Conduct a Technology Assessment

    Before requesting technology funding, understand your current state. What systems and tools do you currently use? Where are the gaps between what you have and what you need to accomplish your strategic goals? What's working well that you want to preserve? Where are staff spending excessive time on manual processes that technology could streamline? This assessment gives you the foundation for specific, well-justified technology requests.

    Develop or Update Your Technology Strategy

    Even if you don't have a formal technology plan, articulate how technology supports your organizational strategy. What technology capabilities do you need to build over the next 3-5 years? How do these capabilities connect to your strategic priorities? What's the logical sequence for building these capabilities? This strategic thinking allows you to position specific grant requests as parts of a coherent multi-year plan rather than isolated asks.

    Build Basic AI Literacy Across Your Team

    Take advantage of the free AI training resources being offered by Microsoft, OpenAI, and nonprofit technology organizations. Getting staff to baseline AI literacy strengthens your applications by allowing you to speak knowledgeably about AI capabilities and limitations. It also demonstrates commitment to building organizational capacity, not just buying tools. Even basic literacy helps you identify realistic use cases and avoid requesting technology that doesn't actually fit your needs.

    Engage Your Board in Technology Discussions

    Governance support for technology initiatives strengthens grant applications significantly. Brief your board on technology priorities, discuss ethical considerations around AI and data use, and secure board endorsement for major technology investments. Applications that reference board engagement with technology strategy demonstrate institutional commitment that goes beyond staff interest. Consider providing board training on AI to build their fluency with these topics.

    Document Your Data Governance and Privacy Practices

    Even if you haven't fully formalized data governance policies, document your current practices around data security, privacy protection, and ethical use. This preparation allows you to address foundation questions about responsible technology use with specific details rather than vague assurances. If your policies need strengthening, acknowledge this in applications and request funding for policy development alongside technology implementation.

    Connect with Peer Organizations and Learning Networks

    Join nonprofit technology networks, attend sector conferences that address technology topics, and build relationships with peers who are navigating similar technology challenges. These connections provide both practical insights for your own planning and collaborative opportunities that strengthen grant applications. Many foundations value proposals that demonstrate sector engagement and commitment to shared learning.

    Conclusion

    The foundation sector's growing investment in nonprofit technology capacity represents both significant opportunity and rising expectations. Organizations that can articulate clear, strategic approaches to technology adoption—demonstrating operational readiness, mission alignment, and commitment to responsible implementation—position themselves competitively for funding across all types of grants, not just technology-specific opportunities.

    The shift in foundation priorities reflects a maturing understanding that technology is infrastructure for nonprofit effectiveness in the 21st century, not a luxury or optional enhancement. Whether you're seeking funding for AI tools, data systems, digital service delivery platforms, or general capacity building, foundations increasingly evaluate your organization's technological sophistication and strategic approach as indicators of your ability to maximize impact with their resources.

    The key is to view technology grant applications not as one-off requests but as opportunities to demonstrate your organization's strategic thinking, adaptability, and commitment to sustainable capacity building. Address not just what tools you want to acquire but how you'll build lasting organizational capability, maintain ethical practice, contribute to sector learning, and ultimately advance your mission more effectively through thoughtful technology adoption.

    For organizations that may feel behind in technology capacity, remember that foundations recognize the nonprofit sector faces significant barriers to technology adoption. They're often more interested in organizations that show honest self-assessment, commitment to learning, and realistic planning than those that claim advanced capability. Meet foundations where you are, show where you want to go, and demonstrate that you have a thoughtful path to get there. That combination of honesty, aspiration, and strategic thinking is what ultimately wins funding and builds foundation partnerships that extend beyond individual grants.

    Strengthen Your Technology Grant Applications

    Need help developing your technology strategy, assessing readiness, or crafting compelling grant applications? We specialize in helping nonprofits articulate their technology vision and build the capacity foundations want to see.