When and How to Disclose AI Use

⏱️ 20 minutes 📊 Lesson 4.6 of 7

The Disclosure Framework

Should you tell funders you used AI in preparing your proposal? The answer depends on three factors: whether the funder asks, whether disclosing helps your case, and whether your use was responsible.

Let's be clear: there's currently no legal obligation to disclose AI use to most funders (unless they specifically ask). But that doesn't mean silence is smart. Disclosure, when done well, signals integrity and operational sophistication. Not disclosing when you could have carries reputational risk if discovered.

Key Concept:

Disclosure strategy depends on context. But the underlying principle is consistent: if you used AI responsibly, you should be able to explain your approach confidently, whether you disclose proactively or answer honestly if asked.

When to Disclose

Scenario 1: Funder Explicitly Asks

Action: Disclose fully and honestly.

Some funders now ask directly: "Was AI used in preparing this proposal?" If they ask, answer truthfully. Dishonesty is far more damaging than honest disclosure. Explain what you used it for (research, outline, editing), describe your verification process, and emphasize how it enhanced rather than replaced human expertise.

Scenario 2: Funder's Guidelines Suggest They Care

Action: Disclose proactively.

If a funder's RFP emphasizes authenticity, accuracy, or equity in ways that signal they're thinking about AI, proactively disclosing responsible use can be an advantage. It shows you're aligned with their values. This is particularly true for equity-focused funders or government agencies that are developing AI policies.

Scenario 3: Your Use Was Minimal and Technical

Action: Optional disclosure.

If you used AI only for research, grammar editing, or administrative tasks (creating formatting templates), you may not need to disclose. This is genuinely tool-mediated writing assistance, similar to using spell-check or a thesaurus. The human voice and judgment are clearly yours.

Scenario 4: Your Use Was Substantial

Action: Plan to disclose.

If AI generated significant content—even if you heavily edited and refined it—be prepared to disclose if asked. Have your explanation ready. In personal relationships with funders, you might disclose informally ("We used some AI tools to help develop the outline, but the substance is all us"). In formal applications, follow the structure in the next section.

Scenario 5: You're Uncertain

Action: Err toward disclosure.

If you're unsure whether disclosure is required or appropriate, the safer move is to disclose. Most funders appreciate transparency more than they penalize disclosure of responsible AI use.

Critical Warning:

Never lie to a funder about AI use. If they ask directly, you must answer truthfully. If you lie and are discovered, the consequences are far worse than honest disclosure would have been. Your reputation and your organization's relationship with the funder are damaged permanently.

How to Disclose

Location #1: In the Proposal Narrative

If you want to disclose in your main proposal, add a brief sentence where contextually appropriate. This works well if your AI use directly supports a specific claim or section.

Example: "To understand current trends in mentoring research, we used large language model tools to synthesize recent publications, which we then reviewed and verified independently."

Location #2: In Methods or Process Section

Some proposals have a "Methods" or "Approach" section where you describe how you developed the proposal. This is an ideal place to briefly mention responsible AI use.

Example: "This proposal was developed by our team using a combination of our program knowledge, community input, and strategic use of AI tools for research synthesis and editing. All claims have been verified against primary sources."

Location #3: In a Cover Letter or Transmittal

If the funder accepts a cover letter, you can mention AI use briefly there. This is less formal and works well for proactive disclosure in situations where you're building a relationship.

Example: "In preparing this proposal, we leveraged AI tools responsibly to enhance our research and writing process while maintaining rigorous verification of all claims. Our team's voice and program judgment drive all substantive content."

Location #4: In Response to a Specific Question

Some funders ask process questions like "Describe how you developed this proposal" or "What research informed your approach?" This is a perfect place to mention responsible AI use.

Example: "Our team developed this proposal by drawing on three years of program experience, six months of community engagement, and strategic use of AI research tools to synthesize relevant studies. We verified all claims against primary sources."

Disclosure Language Templates

Template 1: Minimal Use Disclosure

For AI used primarily for research and editing:
We used AI-powered research tools to support our preparation of this proposal, specifically for synthesizing recent scholarship and editing. All factual claims and program descriptions reflect our direct knowledge and have been verified independently.

Template 2: Substantial Responsible Use

For broader AI use with strong verification:
This proposal was developed by our team using a thoughtful combination of program knowledge, community input, and AI tools for research and writing support. We used AI to generate initial research summaries and draft frameworks, which our team then refined, verified, and integrated with our own expertise. All statistics, citations, and program descriptions have been independently verified.

Template 3: Government/Formal Context

For formal disclosures in government or compliance contexts:
In preparing this application, our organization used generative AI tools (specifically Claude and ChatGPT) for research synthesis, outlining, and editing support. All substantive content was developed by our team and verified for accuracy. Our verification process included checking citations, verifying statistics, and ensuring alignment with our program model.

Template 4: Equity-Focused Context

For funders prioritizing equity:
We believe responsible AI use strengthens nonprofit capacity. In developing this proposal, we used AI tools strategically while maintaining rigorous attention to equity principles. All content underwent review for bias, ensuring we maintained asset-based language and authentic representation of our community. We did not rely on AI for substantive decisions about program design or community framing.

Template 5: Corporate Funder Context

For corporate funders interested in innovation:
We leverage emerging tools strategically to enhance our nonprofit operations. In preparing this proposal, we used AI-powered research and writing tools, which we combined with our team's expertise and rigorous verification processes. This approach allows us to invest more time in community engagement and program refinement while maintaining accuracy and authenticity.
Apply This: Create Your Disclosure Statement

Based on your actual AI use, draft a 1-2 sentence disclosure statement you could use with funders. Include:

  1. What AI tools you used (specific names: ChatGPT, Claude, etc., or general categories: research, editing, outlining)
  2. What you used them for (be specific: research synthesis, editing, generating initial outlines)
  3. Your verification process (how you ensured accuracy)
  4. How human judgment and expertise drove the work

What NOT to Say When Disclosing

Avoid these mistakes when disclosing AI use:

Disclosure as a Strength Signal

Frame disclosure strategically. Rather than positioning AI use as a limitation, position responsible AI use as:

Responsible AI use can be a competitive advantage, not a liability. Disclose it that way.

When You're Asked Directly (And You Didn't Disclose)

If a funder asks directly and you used AI but didn't disclose it, answer honestly immediately:

Example: "Yes, we used some AI tools for research and editing support. We verified all factual claims and our team drove all substantive decisions. Here's our verification process..."

Honesty now is far better than evasion. Most funders will respect the honest answer. What they won't respect is dishonesty discovered later.

Core Takeaway:

Disclosure strategy varies by context. But the underlying principle is consistent: if you used AI responsibly, you can and should explain your approach confidently. Transparency, verification, and human oversight are the foundation of any disclosure conversation.

Moving Forward

The final lesson brings this all together: developing your personal AI ethics commitment. This is where you crystallize your values and commit to a practice aligned with your principles.

← Previous Lesson

Time to Make Your Commitment

In the final lesson, you'll create your Personal AI Ethics Commitment Statement—a document that crystallizes your values and practice.

Continue to Lesson 4.7