A Budget of hits and some worrying misses, according to Australian NFP leaders
Posted on 14 May 2026
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By Nick Place, journalist, Community Directors
Infoxchange has announced a partnership with the National Artificial Intelligence Centre to address one of the most pronounced findings of its recent report 2025 Infoxchange Digital Technology in the Not-for-profit Sector.
The report found that the charity and not-for-profit (NFP) sector had disturbing gaps in its knowledge and a lack of governance foundations when it came to attempts to harness artificial intelligence (AI).
To combat this, the Australian government has provided funding for Infoxchange and the National AI Centre to offer free, practical and accessible resources, templates, advice and training for NFP staff, volunteers and executives through the Digital Transformation Hub, which Infoxchange says already reaches more than 25,000 NFPs.
The initiative aims to help NFPs use AI responsibly, lift confidence, and ensure digital technology and AI strengthen their impact, rather than compromises it, Infoxchange said.

The partnership was announced yesterday in conjunction with the Federal Department of Industry, Science and Resources’ wider National AI Plan 2025, which projects how the government aims to enhance, increase and nurture responsible and effective AI use across Australia. The department also announced a $1.7 million investment in an AI Adopt Program, for small to medium enterprises.
Infoxchange and the National AI Centre announced a webinar tomorrow afternoon (December 4) to kick off the NFP capabilities project.
The webinar, “AI decision making made simple: pathways and procurement checklists for NFPs”, it will look at AI procurement pathways, explain vendor AI checklists and how to apply them, and offer case studies to show organisations how to safely and responsibly invest in AI tools.
The webinar will be recorded and made available to NFP staff and volunteers here.
The partnership between the National AI Centre and Infoxchange will also fund resources including:
Infoxchange’s annual digital technology report, released last month, made clear why these resources are needed in the NFP sector.
Based on a survey of more than 800 not-for-profits, the report found that AI use was growing rapidly across charities and NFP organisations, but policies, governance, infrastructure and knowledge of potential dangers were badly lagging, either leaving organisations at risk, or hampering their attempts to embrace the potential of artificial intelligence.
“Whether in service delivery, volunteer management or fundraising, AI is an invaluable tool to help non-profits achieve their social purpose. However, it will be critical to ensure AI is used safely and responsibly.”
AI adoption had doubled among charities and NFPs in the past 12 months, the report found, but only 14 per cent of organisations had an official, considered AI policy or governance framework in place.
Of the organisations surveyed, 44 per cent ranked harnessing data and reporting for evidence-based decision making as their top digital tech priority – up from 17 per cent the year before. However, 25 per cent said their team’s lack of data and analytical skills was the main barrier to improving capabilities.

Even more pertinently, 44 per cent of organisations ranked the need for access to affordable skills and technical resources as one of their major digital tech challenges, behind only budget and funding challenges. The new initiative is aimed squarely at meeting that need.
The director of the National Artificial Intelligence Centre, Lee Hickin, said, “We know that non-profits, like all Australian organisations, can benefit from the use of AI. Whether in service delivery, volunteer management or fundraising, AI is an invaluable tool to help non-profits achieve their social purpose. However, it will be critical to ensure AI is used safely and responsibly. Through our partnership with Infoxchange, we aim to grow confidence and unlock capability for Australian non-profits, enabling them to harness AI for greater social impact.”
The CEO of Infoxchange, David Spriggs, said AI capabilities had moved from being “nice to have” to becoming essential social infrastructure for charities and NFPs.
“Organisations must be supported to use AI and emerging technologies safely, ethically and responsibly,” he said. “This initiative ensures Australian charities and not-for-profits of all sizes can benefit from the use of AI, and deliver more effective services to communities in need.”
At yesterday's launch, Brett Szmajda from the National AI Centre, said, “We need to unlock capabilities to secure opportunities via skills, and get more clarity on adopting AI safely – it is a lot simpler than you think. I encourage people to read the National AI Plan. It needs to be a balance between risk and opportunity and we need to meet it in the middle to see impact.”
Part of the plan to help NFPs is an initiative called the “Essential 6”.
Szmajda explained, “We've simplified the guidance for AI adoption. The idea is that [NFPs are] thinking, ‘I’m a small organisation and I don’t know where to start. Just give me 6 essential practices I can adopt with good governance and good framework approaches’. Tangible resources meeting organisations where they’re at is what we’re trying to do.”
Read the Department of Industry, Science and Resources’ National AI Plan 2025 here.
Access tomorrow’s Infoxchange webinar here.
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