AB 853: What It Means for AI Governance in Nonprofits

When you use AI to manage donor data, automate outreach, or power chatbots for your nonprofit, you’re not just running a tool—you’re making decisions that affect real people. That’s where AB 853, a California law requiring transparency and accountability in automated decision systems used by public agencies and contractors. Also known as the California AI Accountability Act, it AB 853 doesn’t just apply to government offices. If your nonprofit contracts with a state agency or uses AI tools that impact services for Californians, this law is already relevant to you.

AB 853 forces organizations to document how their AI systems work, who’s responsible for them, and what risks they pose—especially around bias, privacy, and fairness. It’s not about stopping AI use. It’s about making sure AI doesn’t accidentally harm the very people nonprofits serve. Think of it like a safety inspection for algorithms. If your nonprofit uses AI to prioritize food aid, screen grant applicants, or predict donor behavior, you need to know: Is this system trained on diverse data? Can someone challenge an AI decision? Are you monitoring for errors over time? These aren’t optional questions anymore in California. And as more states follow suit, they won’t be optional anywhere.

Related to AB 853 are AI governance, the set of policies, roles, and processes that ensure AI is used ethically and legally, and generative AI compliance, the practice of aligning AI tools like chatbots and content generators with legal standards. These aren’t IT department problems—they’re mission-critical. A nonprofit that ignores them risks losing funding, facing lawsuits, or worse, damaging trust with the communities they rely on. You don’t need a legal team to start. You just need to ask the right questions: Who built this tool? What data was used? How do we fix it if it makes a mistake?

The posts below give you real-world answers. You’ll find guides on how to audit your AI tools for bias, templates for documenting AI use under AB 853, and practical steps to bring your team into compliance without hiring experts. Whether you’re using AI for fundraising, program delivery, or internal operations, these resources help you act now—not wait for a regulator to knock on your door.