This guide outlines the process for grantmakers to create effective artificial intelligence (AI) policies that foster innovation while minimizing risks. It begins by highlighting the increasing use of AI among grantmakers, including notable organizations that leverage AI for various philanthropic missions. The document stresses the importance of establishing internal AI policies to mitigate risks associated with AI usage, such as plagiarism and data security issues. The guide presents seven essential tips for crafting these policies, starting with building a case for policy development, engaging staff in the process, and defining key terms to ensure clarity. Additional recommendations include providing examples of AI use, establishing clear guidelines for responsible AI tool usage, and conducting training sessions to educate staff about the policies. Regular reviews of the AI policy are also suggested to keep it relevant in the face of evolving technology. Overall, the guide offers a comprehensive framework for grantmakers to responsibly integrate AI into their operations.