Large Charities

Large charities continue to lead on digital progress, with 68% now advancing or advanced, with a strategy in place. Three-quarters made progress in the past year. AI use is widespread, but confidence and skills are still low. Barriers such as limited capacity, financial pressures and underinvestment in digital remain. Access to funding that supports digital has improved, although charities still struggle to invest in core costs and strategy development. Leadership remains key, with most saying progress depends on their CEO shaping a clear digital and data vision.

Our sample

• Large charities represent 208 (31%) of our responses, of which 94% are a registered charity or Charitable Incorporated Organisation (CIO).

Digital stage

• Only a third (32%) are at an early stage with digital (6% curious and 26% starting out).
  
  
• 68% have a strategy in place for digital (57% advancing and 11% advanced).
  
  
• 76% made significant or good progress with digital this year.
  
  
• 82% see digital as an organisational priority, with 31% saying it is a high priority. 

Key areas of progress in the last 12 months

Large charities, most of which have a digital strategy in place, have made progress in a wide range of areas, including: 

• IT, systems or infrastructure upgrades (53%, vs 27% of small charities)
  
  
• Social media engagement (47%, lower than 66% of small charities)
  
  
• Revamping our website (47%)
  
  
• Data protection and cybersecurity (46%)
  
  
• Data collection, analysis or use (45%)
  
  
• Our strategy (for digital, data or AI) (41%).
  
  

Barriers to digital progress

1. Lack of headspace and capacity (67%).
   
   
2. Squeezed organisational finances (61%).
   
   
3. Finding funds to invest in infrastructure, systems and tools (55%).
   
   
4. Increase in National Insurance/minimum wage has reduced our budget (43%). 
   
   
5. Poor resourcing and budgeting for digital (38%).

Digital services

• 61% say digital plays a key role in service delivery services, 10% offer online services and 26% use digital in a limited way, behind the scenes.
  
  
• 13% support clients with digital inclusion and 17% say this is an organisational priority, while 46% provide some digital inclusion support.

Digital priorities for the year ahead

1. Develop our strategy (for digital, data or AI) (59%).
   
   
2. Develop a strategic approach to using AI (51%).
   
   
3. Improve/use our data to improve services or operations (46%).

Leadership and digital skills

• 31% have one trustee with digital expertise and 16% have more than one. 
  
  
• Changes needed most at board level are learning more about emerging tech and AI tools (36%), along with better resourcing and investment in digital and IT (36%).
  
  
• 69% say they most need their CEO to develop a clear vision of what they can achieve with digital, while 47% need their CEO to develop the same for data.

Use of AI

• 89% are using AI tools, with 58% at the exploring stage, 29% actively adopting AI tools in everyday work and 2% using AI strategically.
  
  
• In day-to-day work, AI is widely used for a wide range of purposes, including administrative tasks (64%), writing documents and reports (56%), generating ideas, fostering creativity and problem solving (47%) and developing online content (39%). 
  
  
• Organisationally, large charities are mostly using AI for administration and project management (57%), communications and fundraising (28%) and grant fundraising (27%, lower than the 43% of small charities).
  
  
• Surprisingly, only a third (34%) of large charities rate their skills to use AI tools as excellent or fair, similar to small charities (33%).

AI skills, mindset and support needs

• 88% agree or strongly agree that AI developments are relevant to them. However, only 53% feel they are responding to the opportunities and challenges surrounding AI and 27% say they don’t know how to get started with AI.
  
  
• 74% agree or strongly agree that they are worried about the implications of using AI.
  
  
• 35% say their CEO has poor AI skills and knowledge, 36% say their skills are fair. 
  
  
• 40% say their board has poor AI skills and knowledge, 27% say their skills are fair.
  
  
• Large charities are learning about AI by attending events, workshops or webinars (78%) and testing AI tools in everyday work (74%).
  
  
• Most want to learn more about practical uses of AI in everyday work (61%), potential use cases for AI in services (55%) and assessing AI risks (bias, safeguarding) and using AI tools responsibly (55%).
  
  
• Large charities are taking the following steps to move forward with AI:
  
  
  • Developing an AI policy (68%)
    
    
  • Ensuring AI use aligns with our organisational values and policies (51%)
    
    
  • Reviewing data protection and security (48%).
    
    
• Key barriers to moving forward with AI are:
  
  
  • Data privacy, GDPR and security concerns (56%)
    
    
  • The potential for bias and discrimination (46%)
    
    
  • Issues with factual accuracy in AI-generated answers (42%).

Funding

• 48% have accessed funding in the last 12 months that includes digital costs. 
  
  
• Funding needs:
   
  • Core staff or cover staff time to spend on digital/data (64%)
    
    
  • Capacity/headspace for organisational development (62%)
    
    
  • Training for staff and volunteers on digital or data (49%)
    
    
  • Develop our strategy (for digital, data or AI) (45%).
    
    
• The biggest funding barrier large charities face is that funders will only cover limited core costs (digital costs are lower priority) (33%).