This guide serves as a resource for nonprofit organizations to develop an AI Usage Policy, which outlines the ethical and responsible use of artificial intelligence technologies. The document emphasizes the importance of creating a clear policy to guide staff, volunteers, and external stakeholders in using AI tools while adhering to legal and regulatory standards. It details the objectives of establishing such a policy, including ensuring compliance with evolving AI laws, protecting sensitive data, and fostering a culture of AI awareness. The guide also discusses critical factors to consider when creating the policy, such as identifying users of AI, balancing innovation with risk management, and ensuring data privacy and security. Additionally, it highlights the need for transparency and accountability in AI applications and encourages regular reviews of the policy to adapt to technological and societal changes. The document provides a template for organizations to customize their AI Usage Policy according to their specific needs.