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Digital Strategy and AI Adoption

The 2025 Charity Digital Skills Report was published recently, and its findings highlight the challenge many charitable organisations are experiencing in balancing significant financial pressures alongside a need to adapt to accelerating technological change with 69% of the surveyed charities noting that strained finances remain the biggest barrier to digital progre

ss. Financial concerns are also impacting bandwidth, with just 44% of charities operating with a digital strategy in place compared to 50% in the 2024 survey, although the number of surveyed charities making digital progress in the year and prioritizing digital in their organisations remains positive. There is also a substantial growth in AI adoption, with 76% of surveyed charities now using AI tools, up from 61% in 2024, although many also reported their AI governance is lacking, an area that may improve going forward, with 48% of charities (68% large charities) currently developing an AI policy.

However, there remains a clear digital divide between large and small charities, with 68% of surveyed smaller charities noting that they are still at early stages with digital. Given the resources available to some of these organisations, this raises questions around digital equity, particularly with the developments in AI and their adoption by larger charities, which is likely to see the gap widen further.

The survey’s findings provide much for both charities and their funders and advisors to reflect on, concluding:

“Without addressing the fundamental gaps in digital skills, leadership and funding, the charity sector risks implementing emerging technologies without proper governance and strategic foundations. Now more than ever, the sector needs coordinated support from funders and support organisations to ensure responsible and impactful digital
transformation.”

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