How Nonprofits Can Apply for OpenAI’s $50M AI Fund in 2025

In July 2025, OpenAI announced a $50 million People-First AI Fund —a landmark opportunity designed to help nonprofits and community groups use artificial intelligence for real-world impact. While most news headlines focused on the dollar amount, few explained what this means for small and mid-sized nonprofits working on the front lines. 

This guide breaks it down in clear, practical terms. You’ll learn what the fund is, who can apply, examples of projects that fit, and how to assess whether your organization is ready.  

What the People-First Fund Actually Supports? 

• Unrestricted funding: You don’t need prior AI projects; the funds can support exploration, pilots, or scale.  

• Priority themes: AI literacy and public understanding, community-led innovation, and economic opportunity.  

• Application window: September 8, 2025 to October 8, 2025 (closes at 11:00 p.m. PT). Grants will be disbursed by this year’s end.  

Who Can Apply — Eligibility You Must Know 

To avoid wasted effort, check these criteria first: 

• Must be a U.S.-based public charity with valid 501(c)(3) status.  

• Work must be primarily within the U.S.  

• The annual operating budget must be between $500,000 and $10 million.  

• No regranting - funds must be used by your organization and not passed to others.  

• No fiscally sponsored projects or departments within larger institutions.  

If you don’t qualify this time, don’t be discouraged.  Use this as a roadmap to build your organization’s capacity and return stronger in future application rounds.

What Kinds of Projects Could Fit?

Here are ideas that align with OpenAI’s goals (education, equity, community resilience): 

• An AI tutoring chatbot for after-hours student support 

• Forecasting AI tools for food banks to reduce waste 

• Multilingual intake and screening automation in social service settings 

• Community mapping of environmental hazards or health risks 

The key: solve one specific challenge your organization already faces, not build a 'big AI platform.' 

Your Grant-Readiness Checklist 

Before applying, aim to check most of these: 

• You clearly state a problem that AI could help with 

• It ties to your mission and beneficiaries 

• You know who will benefit and how they will benefit 

• You have data or stories showing the need 

• You can explain your idea in plain language 

• You have a small pilot plan 

• You can define success metrics 

• You have a plan for sustainability after the grant 

If you can say “yes” to 5 or more, you’re in good shape. Under 3? Build capacity first. 

Tips to Make Your Proposal Stand Out 

• Lead with community voice. Include those you serve in shaping the idea. 

• Be realistic but bold. Ambition is good — but grounded in what you can deliver. 

• Show how you’ll continue it. Even if funding is for pilot, mention partners or future plans. 

• Be transparent. If there are risks, mention them — it builds trust. 

• Lean into OpenAI tools. Since many will use OpenAI’s tech, show you understand the toolset. 

After You Win, What to Do Next 

• Winning is just the start. 

• Publish results publicly to help others learn. 

• Forge local partnerships (schools, libraries, civic groups) to embed and sustain your work. 

Summary 

The People-First AI Fund is a rare opportunity for nonprofits of all sizes to experiment with AI tools that strengthen community impact. 

If your organization meets the eligibility requirements, now is the time to prepare. 

And remember, you don’t have to navigate this opportunity alone. The CLASS Consulting Group have been advising nonprofit leaders since 2002. Learn more and reach out to explore how your organization can prepare and position itself for funding success.