As small and mid-sized private foundations grapple with a raft of administrative burdens, Bonterra is pitching its tent with artificial intelligence (AI) to revolutionize the sector. The ethical AI firm has rolled out Bonterra Grantmaker to streamline the internal operations of grantmaking organizations.
Bonterra Grantmaker to change the landscape for private foundations
According to a press release, Bonterra has announced the rollout of its AI-powered tool designed to assist foundations scale their operations without increasing their headcount. Dubbed the Bonterra Grantmaker, the offering provides a range of capabilities to address the biggest pain points faced by small private foundations.
Using the AI-based software, small foundations can seamlessly decide which nonprofits will receive endowments based on shared goals and objectives. To achieve this, John Manganaro, Bonterra Chief Product Officer, disclosed that the grantmaking software leans on smart matching tools to reduce manual reviews for foundations.
Presently, private foundations are grappling with limited resources and high administrative burdens. A closer inspection reveals that smaller foundations typically lack in-house expertise in key areas and struggle with application processing and tracking outcomes.
Specifically, Manganaro noted that Bonterra Grantmaker solves these challenges with easy application workflows and ready-to-use reporting.
“Grantmaking has been stuck in systems built for record-keeping, not results,” added Manganaro.
Mitigating AI risk with internal guardrails
While AI offers a raft of benefits for foundations, large language models (LLMs) have come under fire for exhibiting “hidden biases” in several sectors. For non-profits, there are fears that AI-driven solutions may inadvertently favor well-resourced organizations over small entities.
In an interview with Charity Journal, Manganaro noted that Bonterra Grantmaker has a finger on the pulse of AI biases. Notably, he clarified that the scoring approach does not weigh variables tied to the size and scale of the nonprofit, nor does it rely solely on keywords.
Meanwhile, Ben Miller, SVP of Data Science and Analytics at Bonterra, told Charity Journal that the grantmaker leans on structured design controls, governance oversight, and ongoing monitoring to prevent bias.
Furthermore, Miller added that while Bonterra Grantmaker presents the findings, final funding decisions ultimately remain with human reviewers.
“Financial context may be presented to support reviewer understanding, but these metrics are transparent and do not replace programmatic or million alignment considerations,” said Miller. “The system is designed to inform judgment, not overide it.”
Bonterra is leaning on its decade-long experience with nonprofits in the rollout of the AI-powered solution. At the moment, the technology company supports over 180,000 organizations, facilitating nearly $30 billion in annual charitable giving amid plans to scale its reach.