---
title: "Charity board AI governance and acceptable use policy"
url: "https://ailawframework.com/precedents/not-for-profit-charities-and-associations/board-ai-governance-policy"
type: "precedent"
site: "AI Law Framework"
id: "a35-board-ai-governance-policy"
area_id: "A35"
kind: "policy"
ai_level: "yellow"
version: 1
law_stated_as_at: "2026-10-17"
---

# Charity board AI governance and acceptable use policy

> Original board-approved policy for a charity's use of AI: risk tiers, an AI register, rules for beneficiary and donor data, human review of outputs that affect vulnerable people, transparency, vendor checks, incidents…

Canonical page: https://ailawframework.com/precedents/not-for-profit-charities-and-associations/board-ai-governance-policy  
Law stated as at: 2026-10-17

Site index for agents: https://ailawframework.com/llms.txt

Original board-approved policy for a charity's use of AI: risk tiers, an AI register, rules for beneficiary and donor data, human review of outputs that affect vulnerable people, transparency, vendor checks, incidents and board reporting.

## Key facts

- Kind: Policy. A policy or procedure for a firm or client.
- Practice area: [Not-for-Profit, Charities & Associations](https://ailawframework.com/precedents/not-for-profit-charities-and-associations.md)
- Jurisdictions: Australia
- AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at: 2026-10-17
- Status: Maintained. Checked on 2026-10-17 against the 5 authorities it cites, for Australia.

## When to use it

Use when a charity or not-for-profit starts using AI tools (writing assistants, chatbots, donor analytics, triage tools) or needs to bring existing use under board control. Scale it down for very small charities, and add sector rules for health, disability or child-safe services.

## How AI may be used

AI may help draft the policy and the AI register from the charity's actual tool list, under close review. The risk tiers, data rules and approval thresholds must match how the charity really operates and are settled by the lawyer and the board.

**AI may:**

- Draft register entries from vendor documents and staff surveys, citing the source of each fact
- Produce a gap list comparing the charity's current AI use with the policy's rules
- Draft plain-language staff guidance and board briefing notes from the settled policy

**AI must not:**

- Must not describe a tool's data handling from memory or marketing material rather than its current terms
- Must not set the risk tier for a tool that affects beneficiaries' services or safety
- Must not add statements about compliance that the charity cannot evidence

**The lawyer checks:**

- Whether the charity is covered by the Privacy Act or bound to comply by contract or funding agreement
- Data flows for each high-tier tool, including overseas disclosure
- Privacy policy update for APP 1.7 to 1.9 by 10 December 2026 where decisions significantly affecting individuals are made or informed by a computer program
- Consistency with safeguarding, complaints and records policies

## Authorities

- [Australian Charities and Not-for-profits Commission Regulations 2022 (Cth) s 45.25 (Governance Standard 5) and s 45.105 (reliance on information and advice)](https://www.legislation.gov.au/F2022L01301/latest/text)
- [Privacy Act 1988 (Cth) Sch 1 APPs 1, 6 and 11, and Pt IIIC (notifiable data breaches)](https://www.legislation.gov.au/C2004A03712/latest/text)
- [Privacy and Other Legislation Amendment Act 2024 (Cth): APP 1.7 to 1.9 automated decision transparency from 10 December 2026 (OAIC)](https://www.oaic.gov.au/news/media-centre/new-resources-on-transparency-for-use-of-ai-and-automated-decision-making)
- [Office of the Australian Information Commissioner, Guidance on privacy and the use of commercially available AI products](https://www.oaic.gov.au/privacy/privacy-guidance-for-organisations-and-government-agencies/guidance-on-privacy-and-the-use-of-commercially-available-ai-products)
- [National Artificial Intelligence Centre, Guidance for AI adoption: implementation guidance (link only)](https://www.ai.gov.au/sites/default/files/2026-07/Guidance-for-AI-adoption-implementation-guidance_0_0.pdf)

## Official form

[Official form](https://www.acnc.gov.au/for-charities/manage-your-charity/governance-hub/governance-toolkit)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/not-for-profit-charities-and-associations/board-ai-governance-policy and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*