In The Charity Digital Skills Report, we define small organisations as those with an income of up to £1 million. This is because we can see distinct differences in digital skills and support needs among this group, compared to those with an income greater than £1 million.
This year, 360 charities responding to the survey had an income of up to £1 million, this is 73% of our respondents, compared to 62% in 2022. They include 131 organisations (26%) with an income of less than £100,000 and 151 (31%) with an income between £500,000 and £1 million. This means we can compare across a range of smaller income brackets. We have included any insights about trends, differences and similarities where we have found them.
In 2023, larger charities are undoubtedly further ahead with digital. However, this looks to be changing.
- Digital stage: 42% of small charities say they are advancing and advanced with digital. This is significant, but compares to 68% of large charities, a difference of 26%. Last year the difference was 32%. The gap between the digital skills in large and small organisations may be starting to close. However, 25% of small charities are at the earliest, curious stage with digital, compared to 5% of large charities.
- Prioritising digital: Importantly, both small and large charities are prioritising digital to the same extent. 24% of small charities and 28% of large charities see a much greater priority for digital in their organisation. A further 50% of small and 56% of large charities see digital as being more of a priority. In 2022, there was a much bigger discrepancy, with only a third (30%) of small organisations seeing a much greater priority for digital, compared to nearly half (48%) of large charities.
- Early stages with digital: 58% of small charities are at an early stage with digital (similar to the 56% in 2022), with 25% saying they are curious and 33% saying they are starting out. Those with the smallest incomes tend to be at an earlier stage with digital (curious or starting out):
- 63% with an income of less than £100,000
- 58% with an income of £100,000 to £500,000
- 51% with an income of £500,000 to £1 million.
- Advancing with digital: It is worth noting there is a significant group of 149 small organisations advancing (32%) and advanced (11%) with digital.
- Strategy: We can see that 42% of small charities approach digital strategically, describing themselves as either advanced or advancing digitally. The results are similar to 2022 (45%). It is significant that 75% see digital as more of a priority or a much greater priority. Furthermore, 38% say their top priority this year is to create a digital strategy. Whilst the results are similar to 2022, we should start to see more small charities with a digital strategy over the next few years.
- Digital services: 41% of small charities are delivering digital services. This is significantly less than the 66% in 2022 (large charities saw a similar drop from 91% in 2022 to 65% this year).
- Capacity to prioritise digital: Small charities may struggle to move forwards, simply because they lack the capacity and resources to prioritise this. A third of small charities do not have anyone taking responsibility to move forwards with digital (34%), compared to only 9% of large charities. A further third do have someone who is taking this on in addition to their main role (31%). This is similar to 2022.
- Working arrangements: This year, we can see significant differences according to size. Half (54%) of those with an income of under £100,000 work entirely remotely, compared to 16% of those with an income of £100,000 to £500,000. In comparison, 5% of large charities work remotely.
- Top priorities: Key priorities for over half of small charities are:
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- Improve our website, online presence or social media (80%)
- Improve our online fundraising (62%)
- Use data insights effectively to improve services or operations (52%)
- Build digital confidence and skills among staff/volunteers (50%).
- Key challenges: Small charities are still battling to find the funding they need to invest in devices, software or infrastructure. Over half (54%) identify this as their key challenge. This is followed closely by being busy firefighting rather than prioritising digital (44%) and needing to upskill staff or volunteers (41%). This has not changed since last year, with very similar results. 30% identify the cost of living crisis as their biggest challenge. This compares to 23% of large charities.
- Digital skills gaps: More than 40% of small charities say they are poor at:
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- Learning about users from website and analytics data (62%)
- Digital fundraising (59%)
- SEO (Search Engine Optimisation) and ads (58%)
- Keeping up to date with digital trends (e.g. Tik Tok or ChatGPT) (56%)
- Undertaking user research (43%).
- Digital strengths: Over two thirds say they are fair or excellent at basic digital skills (98%), remote working (92%), social media (84%) and creating accessible and engaging content (74%), collecting, managing and analysing data (69%) and making the most of their website (64%).
- Managing risks: Small charities are doing well in terms of managing risks. Over two thirds see themselves as excellent or fair with cybersecurity, GDPR compliance, safeguarding users and safeguarding staff and volunteers from harmful content. The strengths are similar for large charities, but higher proportions of large charities rate their skills as excellent. We believe that many small charities will still be looking to improve in these areas.
- Top five ambitions for improving digital skills:
– Attract more funding
– Improve our brand and raise our profile
– Attract more donations
– Get more useful insights from our data
– Spend less time on administrative tasks.
- Systems and tools: Just over a third (39%) feel their systems and tools are good or excellent. On the flip side, 61% of small charities are having to make do and get by with their existing systems and tools. Of these, 22% say their systems and tools are poor and causing them a regular headache, wasting time and affecting their confidence to try new things. The biggest challenge for over 50% of small charities is their CRM or database. A further 40% feel their website is causing significant problems for their organisation.
- Digital leadership: A third of small charities feel their board has good or excellent digital skills. However, over half (56%) say skills are very low or need to improve. Key changes that would help at board level include recruiting a digital trustee (person with relevant digital expertise) and the board having a better use of data to inform decision making, learning more about digital and less reliance on one person as the digital expert.
In order to progress with digital, it is crucial that CEOs of small charities develop:
- A clear vision of what we could achieve with digital (56%)
- Ability to develop and embed a good digital strategy (45%)
- Understanding of digital trends and how they affect your organisation (34%).
- Cost of living: Whilst 44% of small charities say their digital capacity remains the same, 56% have seen a reduction amidst the cost of living crisis. A third are spending less money on digital tools, a third (35%) are also exploring how to work more efficiently using digital tools. The response is similar from large charities.
- Funding demand: 42% of small charities say that their need for grant funding has increased significantly and a further 36% say it has increased a little. This is significantly higher than in 2022. This is likely to be related to the cost of living crisis and the increasing prioritisation of digital. 36% have applied for funding to include digital costs this year.
- Funding needs: For half of small charities (48%), their top need for funding is time to develop a digital approach or strategy. This has increased in importance since 2022 when it was the third biggest need and a top priority for 36% of small charities.Small charities identified their top five needs for funding as:
– Time and/or support to develop our digital approach or strategy (48%)
– Computers, devices, IT and infrastructure (39%)
– Training for staff and volunteers on digital or data (38%)
– Software or subscriptions (37%)
– Bringing in external tech expertise and advice (35%).
- Funding accessed: 43% of small charities have applied for and accessed funding for equipment (laptops, devices, PCs, servers) this year. 28% have also accessed funding for software/subscriptions to digital tools. Interestingly, funding requests focus on tools, systems and skills internally. Only 14% have accessed funding to develop a digital service.
- How funders can help: Small charities would find it most helpful if funders could offer advice on digital funding applications and additional support to progress with digital. This was rated as very helpful by 62% of respondents. The priorities for funders to provide support are slightly different to 2022. As more charities look to include digital costs in funding applications, guidance on doing this will of course be increasingly helpful and needed.
- Digital education and trusted advice: Small and large charities turn to similar preferred sources when looking for trusted digital advice, support or people to work with. Over a third turn to:
– Online searching
– Current IT provider/digital partner
– Organisations dedicated to providing digital and data support
– Word of mouth recommendations from peers.
For a third of charities, small and large, the most helpful sources of advice have been information or guidance online, asking peers directly for advice and expert advice or mentoring. Interestingly, half of large charities (48%) have found working with a digital agency/consultancy the most helpful source of advice this year. This is something smaller charities often do not have access to.