For nonprofits, researchers and grant teams

AI for grant writing, with the funder's rules on the table

A five-stage workflow where AI does the mechanical work (matrices, consistency checks, tightening) and you remain the author of the ideas. It starts with what NIH and NSF actually say about AI, read from their own notices rather than from summaries of them.

Published by ZeroTwo, the product discussed here. General information, not legal or compliance advice.

What the funders say about AI

  • NIH

    Policy in effect

    Applications, or sections of them, that are substantially developed by AI are not considered the applicant's original ideas.

    NOT-OD-25-132, released July 17, 2025
  • NSF

    Disclosure encouraged

    Proposers are encouraged to say in the project description whether and how generative AI was used. Proposers stay responsible for accuracy.

    Merit review AI notice, December 14, 2023
  • Your solicitation

    Read it first

    Funding announcements and foundation guidelines can add their own rules. Search them for the words AI and generative before you draft.

    Example: DOL ETA grants overview

Pages opened October 5, 2026. Rules change; the solicitation you are applying to controls.

Decide who the author is before you open a chat

The agencies frame AI use around originality (NIH) and accuracy and authenticity (NSF). This split is our rule of thumb, not either agency's list of approved tasks. In Fast Forward's 2025 survey, 35% of nonprofits adopting existing AI tools had a responsible-AI policy (see Candid's write-up). A one-page team rule based on the split below is a good first step.

Reasonable to hand off for a first pass

  • Turning a long solicitation into a requirements matrix you then verify against the source
  • Restructuring your own notes into the funder's section order
  • Finding claims in your draft that have no source attached
  • Spotting gaps between the logic model, the narrative and the budget
  • Tightening prose you wrote, and checking tone against the funder's own wording

Keep as the author

  • The hypotheses, aims, theory of change and program design
  • Every statistic, citation and quotation: you open the source
  • Real people's stories, with their consent
  • The decision to disclose AI use, and how to word it
  • Anything the solicitation or your institution says you must do yourself

If you are a reviewer, do not use this workflow on proposals

NSF's notice prohibits its reviewers from uploading proposal content, review information and related records to non-approved generative AI tools. Check the rules of any program you review for.

What each funder says, and how binding it is

We separate a rule from an encouragement and from silence, because the three call for different behavior. Entries are paraphrased from the pages linked in the last column.

AI policy summaries for NIH, NSF, DOL ETA and private foundations, with how binding each is and the source read
FunderWhat the source saysHow bindingSource
NIHApplications, or sections of applications, substantially developed by AI are not considered original ideas of the applicant. AI may be appropriate for limited aspects of preparation. If AI use is identified after an award, NIH may refer the matter to the Office of Research Integrity and take enforcement action. Separately: NIH accepts at most six new, renewal, resubmission or revision applications per PI per calendar year.Policy, effective for applications submitted to the September 25, 2025 receipt date and beyond. Applies to all activity codes except T codes and R13. The notice does not define what counts as substantial.NIH NOT-OD-25-132
NSFProposers are encouraged to indicate in the project description the extent to which generative AI was used and how. Proposers are responsible for the accuracy and authenticity of the submission. Reviewers are prohibited from uploading proposal content to non-approved generative AI tools.Encouragement for proposers; prohibition for reviewers. NSF says it may publish further guidelines and update the PAPPG, so check the current PAPPG and your solicitation.NSF notice, December 14, 2023
DOL / ETAThe ETA grants overview page does not state a general AI rule. Any requirement would sit in the individual funding announcement.Unknown until you read the funding announcement you are applying to.DOL ETA grants overview
Private foundationsWe have not verified a sector-wide rule for foundations. Guidelines differ foundation by foundation.Varies. If the guidelines are silent, ask the program officer.Each foundation's own guidelines

Pages opened October 5, 2026. The NSF notice points to a PAPPG update that we did not review; check the current PAPPG.

Five stages, each with an input, an ask and a check

Every stage ends with something you verify yourself. The model is deliberately not part of the stage names: choosing one is a test you run, described after the timeline.

  1. Stage 1

    Funder research

    You bring
    The full solicitation or guidelines, public award abstracts you are free to use, and a one-page summary of your program.
    Ask the model to
    List the funder's stated priorities in their own words, then map each one to something your program actually does. Flag where your summary uses different vocabulary.
    Your check
    Search the solicitation for every priority it lists. A model summarizing text you pasted is not doing funder discovery; use a funder database for that.
  2. Stage 2

    Needs statement

    You bring
    Your community data with the source of each figure, the population and geography, and the funder priorities from stage 1.
    Ask the model to
    Propose an outline, tighten a paragraph you wrote, and mark every claim that has no source attached. Draft only from the data you supplied.
    Your check
    Trace each number to your source. Delete any statistic you cannot find. The human story must be a real one, told with consent.
  3. Stage 3

    Logic model

    You bring
    The activities, outputs and outcomes you decided on, and any evaluation data you already hold.
    Ask the model to
    Arrange them as a table and list gaps: an outcome with no activity behind it, or an activity that produces no output.
    Your check
    The theory of change has to be yours and defensible in conversation. For research applications, hypotheses and specific aims must come from the investigators.
  4. Stage 4

    Budget narrative

    You bring
    An export of your budget spreadsheet, your rates, and the funder's budget instructions.
    Ask the model to
    Draft a justification sentence per line item, then list every place the narrative and the figures disagree.
    Your check
    Recompute totals in your spreadsheet; do not rely on a model's arithmetic. For reconciliation and review, see AI for accountants.
  5. Stage 5

    Compliance matrix

    You bring
    The complete solicitation and your near-final draft.
    Ask the model to
    Build a table of every requirement with where the solicitation states it, where your draft addresses it, and a status. List what is unaddressed.
    Your check
    Confirm page limits, fonts and attachments against the solicitation and the submission portal yourself. The portal's validation is the authority.

Long solicitations: the Free plan allows one file upload per message, so paste the relevant sections or split the document. For funder discovery, use a funder database such as Instrumentl or Foundation Directory Online and bring what you find into stage 1. Generic proposals that are not tied to a funder are covered by the proposal generator.

Two documents worth keeping with every application

The requirements matrix is what stage 5 produces. The authorship review is what you complete before you submit. Neither is a compliance guarantee; they make gaps visible.

Requirements matrix template with placeholder rows
RequirementIn the solicitationIn your draftEvidenceStatus
Page limit: project narrative[solicitation section, page][section, page][word or page count]Open
Required section: [name][solicitation section, page][section, page][none needed]Open
Budget justification format[solicitation section, page][attachment name][recomputed totals]Open
AI-use statement, if one is asked for[solicitation section, page][section, page][authorship review]Open
Certifications and required attachments[solicitation section, page][file list][checklist]Open

Template rows with placeholders, not a real solicitation. We have not published a completed example.

Substantive-authorship review

  • For each section: who wrote the first draft, and with which tool?
  • Which ideas, framings or aims came from a model suggestion? Rewrite or remove any you cannot defend as your own.
  • Every citation opened and read in the original source. None you cannot locate.
  • Every number traced to your data or a cited source.
  • Could you explain each section to a program officer without notes?
  • Does the solicitation or your institution ask for AI disclosure, and is it included?

Pick a model by testing it on your own material

We have not published a head-to-head grant-writing comparison, so this page does not tell you that one model suits one stage. ZeroTwo puts 60+ models in one workspace; you can run the same prompt across providers (see the model list) and judge for yourself.

  1. Fix the inputs

    Pick one stage and one real input, such as a needs-statement data sheet with sources. Remove anything confidential first.

  2. Run two or three models

    Send the same prompt to models from different providers in one ZeroTwo chat. Keep every setting and instruction identical.

  3. Score against your list

    Use the checklist on the right. Pick on your own scores, and repeat the test when models change.

Score each output

  • Stayed within the facts you supplied
  • Marked missing sources instead of inventing them
  • Used the funder's vocabulary without copying their text
  • Needed little rewriting to sound like your organization

One prompt per stage

Replace the bracketed parts, paste only material you may share, and keep the “use only the text I supplied” lines: they are what stop a model from filling gaps with plausible invention.

Stage 1: funder research

I am preparing an application to [FUNDER] under [PROGRAM]. Below are (1) the full solicitation text, (2) [number] public award abstracts, and (3) our program summary.

Using only that text:
1. List the funder's stated priorities, quoting the phrases they use.
2. For each priority, say which part of our program speaks to it, or write "no match".
3. Note where our summary uses different words from the solicitation.
4. List anything in the solicitation that says anything about artificial intelligence, with the quoted sentence.

Do not add facts about the funder that are not in the text I pasted.

Stage 2: needs statement

Help me draft a needs statement for [FUNDER] / [PROGRAM] using only the data below. Each figure includes its source.

Population and geography: [..]
Data: [figure | source]
Our theory of change (my words): [..]
Funder priorities to reflect: [paste from stage 1]

Write 400 to 600 words. Do not invent statistics, quotes or anecdotes. Where a claim needs evidence I did not supply, write [NEEDS SOURCE] instead. Afterwards, list the two weakest claims and what evidence would strengthen them.

Stage 3: logic model

Here are the activities, outputs and outcomes I decided on for [PROGRAM]:

[paste your list]

Arrange them as a table: Inputs | Activities | Outputs | Short-term outcomes | Long-term outcomes. Do not add any new activity or outcome. Then list gaps: outcomes with no activity behind them, activities with no output, and outputs that no outcome depends on.

Stage 4: budget narrative

Attached is an export of our budget (CSV) and the funder's budget instructions.

For each line item, draft one or two sentences of justification in plain language. Then list every place where the narrative and the budget figures disagree, or where a funder instruction is not addressed. Do not do arithmetic for me: quote the figures as given and I will recompute the totals myself.

Stage 5: compliance matrix

Attached are (1) the complete solicitation and (2) our draft application.

Build a table with the columns: Requirement | Where the solicitation states it | Where the draft addresses it | Status (Met, Partial, Missing). Include page limits, formatting rules, required sections, attachments, certifications, and anything about AI use. Quote the solicitation's wording in the second column. List Partial and Missing items at the end.
Try stage 1 on a solicitation you can share

Wording for when a funder asks how you used AI

These are starting points, not a statement that makes an application compliant. Whether you need one, and what it must say, depends on the solicitation and your institution.

NSF project description

NSF's December 2023 notice encourages proposers to say whether and how generative AI was used. Check the current PAPPG and your solicitation.

Generative AI tools ([tool names]) were used in preparing this proposal for [tasks, for example: restructuring notes, checking tone]. The research questions, methods and analysis plan were developed by the investigators, who reviewed and verified all content, data and citations.

NIH: internal authorship record

NIH's notice does not prescribe disclosure wording. Keep this for your own records, and use a statement only if your institution or the solicitation asks for one.

AI tools were used only for [tasks]. The hypotheses, specific aims and study design were developed by [PI name] and the co-investigators. All citations were checked against the original sources. Sections where AI assisted: [list]. Each was reviewed and rewritten by [name].

DOL or another agency

Only if the funding announcement asks about AI use.

This application was prepared with AI assistance for [tasks]. Program design, eligibility criteria, performance targets and budget figures were set by [organization] staff from our program records. We have followed the requirements in [announcement number].

Private foundation

If the guidelines ask, or you choose to say so.

We used an AI writing tool to help edit this proposal. The program description, needs assessment and budget reflect [organization]'s own work and were reviewed and approved by [title] before submission.

Not legal advice. Confirm wording with your sponsored-programs office or counsel before submission.

Where ZeroTwo fits, and where it does not

ZeroTwo is a chat workspace with 60+ models, file uploads and projects. It is not a funder database, it does not know your solicitation unless you give it the text, and it does not check a funder's rules for you. Read the Privacy Notice before you upload anything sensitive.

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Questions grant teams ask

Does NIH allow AI in grant applications?

NIH notice NOT-OD-25-132, released July 17, 2025 and effective for applications submitted to the September 25, 2025 receipt date and beyond, says NIH will not consider applications that are substantially developed by AI, or that contain sections substantially developed by AI, to be the original ideas of applicants. It adds that AI may be appropriate for limited aspects of preparation and warns of plagiarism and fabricated citations. The notice does not define substantial, so ask your program officer or research office if you are unsure where the line sits.

Does NSF require disclosure of AI use in a proposal?

In its December 14, 2023 notice, NSF says proposers are encouraged to indicate in the project description the extent to which generative AI was used and how. That is encouragement, not a blanket requirement in that notice. NSF also says it may publish further guidelines, so check the current PAPPG and your solicitation before you submit.

What about the Department of Labor and private foundations?

We found no general AI rule on the DOL ETA grants overview page, and foundation rules differ. Where a rule exists it will be in the funding announcement or the foundation's guidelines. Search those documents for artificial intelligence and generative, and ask the program officer if they are silent.

Is it ethical to use AI for grant writing?

That depends on the funder's rules and on honest authorship. The NIH notice itself says AI use may result in plagiarism, fabricated citations or other research misconduct. Our rule of thumb: be able to explain and defend every section, open every source you cite, and follow whatever disclosure the funder asks for.

Will funders detect AI-generated text?

NIH's notice says it will continue to employ the latest technology in detection of AI-generated content. We cannot tell you how reliable any detector is, and this page does not recommend writing to avoid one. The safer frame is authorship: the ideas are yours, and the draft reflects them.

How much time does AI save on a grant application?

We have not measured it and do not publish a figure. Instrumentl's roundup, citing Charity Science, gives 15 to 20 hours for a foundation grant and up to or over 100 hours for a federal grant, which is only a rough baseline. Time one stage yourself, with and without AI, including the time you spend checking.

Which model is best for a needs statement?

We have not published a ranked comparison, so we will not name a winner. Run the same inputs through two or three models in one ZeroTwo chat and score them against your own checklist: stays within your facts, marks missing sources, needs little rewriting.

Can I use this workflow for SBIR or STTR applications?

The NIH notice applies to all activity codes except T codes and R13 conference grants, so NIH SBIR and STTR applications are covered by it. Other agencies set their own rules in their solicitations. Read the specific solicitation for AI language, page limits and required sections.

What should I not paste into ZeroTwo?

Anything you do not have permission to share. ZeroTwo's Privacy Notice says that using AI features may send your content to the model provider you select, that some providers may retain or use submitted data under their own terms, and that you are responsible for having permission to submit confidential or regulated information. NSF also prohibits reviewers from uploading proposal content they are reviewing to non-approved generative AI tools. Test with non-confidential text first.

How does ZeroTwo compare with grant-specific platforms?

ZeroTwo is a general chat workspace with many models, not a grant database. Grant platforms such as Instrumentl describe funder discovery and pipeline tracking as their focus; check their sites for current features. A reasonable split is a funder database for discovery and ZeroTwo for drafting support, checking and matrices.

Is it free to try?

ZeroTwo has a Free plan with 100 free credits to start and +20 bonus credits every day you log in; no card is required. Plus is $14.99/month and Pro is $29.99/month ($26.99/month billed annually).

Sources and what we used them for

Pages opened October 5, 2026. Anything not listed here is our own editorial judgment.

First published . Funder-policy sections revised .

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