Nonprofit Board News, September 2025: AI Oversight a Must for Boards

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AI’s growing prominence on the world stage continues to grow unabated. Boardrooms are no exception.

While boards are certainly using the new technology for good, its presence also brings the need for overseeing its implementation and building information security safeguards.

Meanwhile, compliance mandates and tax law changes are also affecting nonprofit boards — or they will soon.

Let’s look at some of the bigger news items affecting nonprofit boards of directors.

AI and Technology Oversight Becoming a Core Fiduciary Duty

Nonprofit boards are now expected to be more than just stewards of an organization’s mission; they must also be tech-savvy.

The rising use of AI and data analytics in nonprofit operations is creating a new level of governance. Boards are being pushed to take a more direct role in overseeing technology implementation and data security, with new guidance emphasizing the need to understand how AI can impact everything from fundraising to client services.

Boards must ensure their organizations are using technology ethically and securely to avoid significant reputational and financial risks.

New Requirements for Beneficial Ownership Information (BOI) Reports

Nonprofit boards are facing new compliance mandates under the Corporate Transparency Act (CTA), which requires them to file Beneficial Ownership Information (BOI) reports with the Financial Crimes Enforcement Network (FinCEN).

While many 501(c)(3) nonprofits are exempt, some, such as social and recreational clubs, may not be. Boards must now proactively verify their exemption status and prepare for the risk of daily fines for non-compliance. This is a significant shift in legal and financial oversight for boards.

Tax Law Changes Affecting Charitable Giving Incentives

The One Big Beautiful Bill Act (OBBBA) has introduced major changes to tax deductions for charitable giving, directly impacting nonprofit fundraising strategies. While the new law expands some deductions for non-itemizers, it also imposes new limits and floors for high-income and corporate donors.

This shift is creating a complex funding landscape, compelling nonprofit boards to diversify their revenue sources and reassess their donor pipelines to ensure long-term financial resilience.

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About The Author

Adam Wire: Adam Wire is a Content Marketing Manager at OnBoard who joined the company in 2021. A Ball State University graduate, Adam worked in various content marketing roles at Angi, USA Football, and Adult & Child Health following a 12-year career in newspapers. His favorite part of the job is problem-solving and helping teammates achieve their goals. He lives in Indianapolis with his wife and two dogs. He’s an avid sports fan and foodie who also enjoys lawn and yard work and running.