AI and Funding Applications: What You Need to Know
Awdur: Andrew Collins;
Amser Darllen: 5 munud
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Using AI to Support Your Funding Applications
If you have ever stared at a blank application form, wondering where to start, you are not alone. Funding applications take time, and for organisations with limited capacity, they can feel like a significant barrier. AI tools can genuinely help with this, but only if you use them in the right way.
The good news is that many funders are now open about their position on AI. The National Lottery Community Fund, one of the largest funders in Wales, has published clear guidance on this. Their position is straightforward – you can use AI tools to help write your application, and they will not reject an application just because AI was used.
That said, they are equally clear about the risks. AI-generated content tends to be generic, and generic applications are weaker applications. A funder wants to understand your community, your project, and why it matters. No AI tool can tell that story for you, but it may be able to help you tell it more efficiently.
It is also worth noting that guidance varies between funders. The National Lottery Community Fund’s position is one of the more open ones. Before using AI on an application to a different funder, it is worth checking whether they have published their own guidance, as some may have different expectations.
Keeping your data safe
This is the part that many people overlook, but is perhaps the most important consideration. When you type information into a free AI tool, that information may be used to train future versions of the model. For most everyday tasks, this is a manageable risk. For funding applications, it deserves more careful thought.
Applications often contain sensitive details, for example, information about the people you support, internal financial data, details of your organisation’s challenges, or personal case studies. Pasting this into a free tool without thinking it through is not good practice.
A few practical steps to protect your data:
- Avoid free tools for anything sensitive. Paid plans on tools like Claude or ChatGPT offer stronger data protections, including options to prevent your conversations from being used for training
- Do not paste identifiable personal information about service users into any AI tool
- Check the privacy settings and terms of service for any tool before you use it for application work
- If your organisation handles sensitive data, consider having a simple internal policy on what staff can and cannot share with AI tools
At ProMo Cymru, one of our core principles for responsible AI use is that we will not share people’s data with AI tools without their consent. You can read our full AI Statement at promo.cymru/ai-statement.
Get more from AI by adding context
One of the biggest frustrations people have with AI tools is that the outputs feel generic and disconnected from their actual work. The reason for this is simple, the AI does not know anything about your organisation unless you tell it.
This is where tools that let you add context become genuinely useful. Claude Projects (available on Claude’s paid plan) is a good example. It lets you create a dedicated workspace where you can upload documents about your organisation – your strategy, previous applications, impact reports, theory of change – and the AI will draw on all of this when you ask it questions or request a draft.
Instead of asking a blank AI to write about your work and getting something that could apply to any charity, you are working with a tool that has read your materials and can reflect your voice, your data, and your approach. The difference in output quality is significant.
Similar functionality exists in other tools. ChatGPT allows you to create custom GPTs with uploaded documents. Microsoft Copilot, if your organisation uses Microsoft 365, can draw on files stored in your SharePoint or OneDrive. The more relevant and detailed context you give the AI, the more useful it becomes.
How to use AI well in your applications
The National Lottery Community Fund‘s guidance offers some practical advice that applies broadly, whatever funder you are applying to:
- Start with your community, not a blank prompt: AI works best when you give it your own insights, consultation feedback, and data to work with, rather than asking it to invent those things
- Be specific: Generic prompts produce generic outputs. Tell the AI exactly what your project does, who it serves, and what makes it distinctive
- Treat AI output as a first draft, not a finished product: Edit it to sound like you, add the details that only you know, and make sure every claim is accurate
- Do not rely on AI-suggested budgets: Always check figures carefully against your actual plans and the funder’s eligibility criteria
- Check for inaccuracies: AI can produce confident-sounding content that is factually wrong. Verify anything important before it goes into an application
A useful tool, not a shortcut
The organisations that will get the most out of AI for funding applications are those that use it to work more efficiently, not to avoid the hard thinking. A strong application still needs genuine insight into your community, a clear and costed plan, and a compelling case for why your project matters. AI cannot provide any of those things from scratch.
What it can do is help you get words on the page faster, improve the structure and clarity of what you have written, and make the whole process feel less daunting. Used like this, it is a genuinely useful addition to your toolkit.
If you would like support with using AI tools safely and effectively in your organisation, get in touch with our team to learn how we can support you.
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