Tech is a Governance Issue–How Foundations Can Lead with Values in the Digital Age

We’ve been working with foundations and leaders in the CSR space, and when it comes to the world of philanthropy, one thing is clear: especially in the age of AI, technology is no longer just a back-office issue. It shapes how nonprofits, grantmaking foundations, and other social-good organizations serve communities, build trust, and deliver on their missions.  

That makes it a governance issue. Just as boards oversee finances and legal compliance, they must also ensure technology is used in ways that reflect their foundation’s ethics and commitments. From data privacy to algorithmic bias, technology decisions are values decisions. They can reinforce dignity, equity, and inclusion–or undermine them. The role of the board is to help keep those choices mission-aligned.

Some foundation leaders push back, saying “I don’t want my board in the weeds” or “this is staff work.” And they’re right about the tactical work: boards shouldn’t micromanage platforms or projects. But just as boards don’t run payroll while still overseeing finances, they must now apply the same oversight to digital strategy, risk, and values. Technology is too central to leave entirely to staff.

Others worry, “my board doesn’t know anything about tech,” or, “they’ll only slow me down.” In practice, the right board member accelerates progress by clarifying risks, strengthening the case for investment, and opening doors to resources and partners. The rest of the board doesn’t need to be technologists; they just need enough fluency to ask the right questions.

Tools like Board.Dev’s Tech 28 can help boards start these conversations without requiring deep technical expertise. Boards can ask: 

• Does this technology advance equity and inclusion for the people we serve?
• Are we using digital tools in ways that strengthen, rather than compromise, community trust?
• What does innovation look like when measured not only in efficiency, but in accountability and justice?

Technology has always been linked to mission, but these issues matter even more with AI and frontier tools. Philanthropic leaders are weighing whether to innovate, adopt, or wait with next-gen technologies that could either help you make real progress, or set you back with unethical or inept implementation. Those decisions aren’t just about cost or capacity; they’re about values like transparency, accountability, and justice. A board that brings tech expertise helps balance opportunity with risk through a mission lens, clarifying when you should experiment with untested tools or wait for others to uncover the risks. 
And the data is clear: foundations and nonprofits with strong technology leadership are four times more likely to achieve their missions. Yet most boards don’t have the expertise or frameworks to guide technology decisions. The good news is that just by starting the conversation, even a board that isn’t tech fluent can get up to speed quickly–and play a meaningful role in tech choices.

The FINCA Story

Consider FINCA International, a global microfinance nonprofit. Like many foundations nowadays, FINCA was exploring how AI could make its operations more efficient and its research more impactful. With the guidance of a tech-savvy board leader, FINCA partnered with AWS to build an AI-powered tool that automated months of research into hours. The project wasn’t just a technology upgrade; it was a board-enabled transformation that gave FINCA faster insights into poverty alleviation and confidence that the work was mission-aligned. (Watch the short video case study here).

Stories like FINCA’s show what’s possible when nonprofit and foundation boards engage in discussions and decisions about technology. Values-based tech governance strengthens resilience and impact, bringing better data for funders and donors, improved services for communities, stronger alignment across staff, leadership, and the board, and more confident decision-making in uncertain times. 

And funders have a pivotal role to play. As we argued in the Chronicle of Philanthropy, what gets funded becomes the norm; funders can set the tone by supporting board-level capacity. By embedding tech ethics into their own governance and equipping grantees with board-level capacity, foundations can help ensure that technology adoption is principled, people-centered, and aligned with the missions and needs of our grantee partners and communities served.

This is the conversation we’ll dive into with Foundant on October 1. Together, we’ll share insights from our recent AI Adoption + Policy Board Brief, created with the Nonprofit Tech Governance Congress, and explore how boards can bring clarity, courage, and values to technology decisions—and why their engagement is critical to mission success in the AI era.

Join us! Register for the webinar here.