Nations and Regions

Scotland

About our sample and key findings

This year, 105 charities from Scotland took part in the survey (13% of the overall sample), significantly higher than the 59 responses received last year. A high proportion operate on a UK-wide basis (66%, compared with 22% in the wider sample). The Scotland sample also included a more even split of large and small charities, with 52% large charities and 44% small charities, compared with 71% small charities in the wider sample.

For the first time this year, the sample size allowed us to explore differences between small charities in Scotland and small charities in the wider sample. However, the number of large charities in Scotland was still too small to support meaningful comparisons.

Within our sample of 56 small charities in Scotland, over half (52%) operate on a UK-wide basis. Just over half (54%) are led by people with lived experience of the issues they address, with a high proportion led by and for women and girls. A further 43% primarily serve local communities.

Overall, we found very few differences between charities in Scotland and charities in the wider sample in terms of digital skills, adoption and attitudes. Where small differences do appear, these are likely to reflect the higher proportion of large charities in the Scotland sample, rather than geographic differences. For this reason, broad comparisons between the two samples are of limited value. However, small charities in Scotland appear to be slightly further ahead in digital and AI adoption than small charities in the wider sample.

Digital progress and skills in Scotland

38% of charities in Scotland have a digital strategy in place, falling to 23% of small charities, similar to our wider sample. 44% of charities in Scotland provide digital or digitally supported services (39% of small charities), while 45% provide some form of digital inclusion support.

Among small charities in Scotland:

77% are still at an early stage of digital development, in line with our wider sample.
80% say they have made progress with digital this year.
63% rate themselves as fair, good or excellent at investing in and resourcing digital, compared with 47% in the wider sample.
39% provide digital services.

Areas of strongest digital confidence (with over half rating themselves as excellent or good):

Data protection and GDPR compliance (87%).
Using digital tools in everyday work (70%).
Cybersecurity (65%, falling to 54% of small charities).
Social media (61%, falling to 49% of small charities).
Making the most of websites (55%).
Collecting and managing data (52%).
Using digital tools in service delivery (47%).
Using data to inform decision making (43%).

There are several areas with mixed confidence. These include:

Collecting and managing data: 52% excellent and good, 39% fair.
Using digital tools in service delivery: 47% excellent and good, 41% fair.
Using data to inform decision making: 43% excellent and good, 39% fair.
User research: 35% excellent and good, 38% fair.

Areas of low confidence (skills rated as poor, or they don’t do this) are digital fundraising (36%, plus 37% fair), search engine optimisation (35%, plus 25% fair), investing in and resourcing digital effectively (34%, plus 41% fair), and keeping up with emerging tech trends (31%, with 46% fair). More than 40% of charities do not undertake any paid social media advertising (40%) or pay-per-click advertising (48%).

Digital priorities and challenges for charities in Scotland

Top priorities for charities are to:

Build digital skills of staff, volunteers and leaders (66%).
Improve how we collect, analyse and use data (66%).
Develop or update our strategy for technology, digital or AI (59%, 43% of small charities).
Improve online presence and digital communications (57%).

Digital barriers to achieving these are:

Squeezed organisational finances (64%, rising to 73% of small charities).
Lack of headspace and capacity (55%).
Lack of technical expertise or someone to lead on digital (36%, rising to 48% of small charities).

AI adoption in Scotland

85% of charities in Scotland are now using AI tools, falling to 75% of small charities. However, only half (50%) feel they are responding effectively to the opportunities and challenges presented by AI.

AI tools are most commonly used for administration and project management (73%), followed by monitoring and evaluation (43%). Small charities show similar patterns of use, but are also making significant use of AI for grant fundraising (44%) and social media (44%).

The most common uses of AI are improving productivity in everyday tasks (68%), supporting work with documents (65%) and generating ideas and content (45%).

The main barriers to AI adoption are:

Limited skills and technical expertise (58%).
Concerns about quality and accuracy (57%).
Data privacy, GDPR and security concerns (54%).

61% of charities in Scotland have developed, or are developing, an AI policy, although this falls to 43% of small charities.

The sector-wide support charities most want around AI includes:

Training for staff and volunteers (61%).
Training for leaders and trustees (56%).
Sector guidance and examples on responsible AI use (51%).

Over half of charities (51%), rising to 57% of small charities, say they most need support to use AI tools for data analysis.

Digital leadership skills in Scotland

Half of charities (54%) say their CEO has excellent or good digital skills, as do 58% of small charities. However, only 32% say their CEO has excellent or good AI skills. Charities in Scotland most want their CEO to develop a clear vision for digital (43%).

Views on what boards most need to improve are mixed, although the highest-rated priority is learning more about emerging technology and AI tools (33%). Less than half (46%) have excellent, good or fair AI skills. Furthermore, 40% do not have a digital trustee or relevant digital experience on their board, increasing to 56% of small charities.

Funding in Scotland

Overall, a third of charities in Scotland have accessed funding for digital costs or projects this year. This includes a quarter (25%) of charities and 21% of small charities in Scotland accessing funding from grantmaking trusts and foundations this year. A further 13% accessed digital funding from other sources.

In the year ahead, 41% say that securing funding for digital costs and projects is an organisational priority. However, the biggest funding barrier identified is that core cost funding is not sufficient to cover digital costs (31%).

Top funding needs for charities in Scotland are:

Training staff, volunteers, leaders or boards (39%).
Developing our use of AI (39%).
Revamping our website, content or brand (36%, rising to 42% of small charities).
IT, devices and equipment (34%, rising to 40% of small charities).

Northern Ireland

In Northern Ireland, 67 charities took part in the survey (8% of the overall sample), slightly higher than the 42 responses received last year. A high proportion operate on a UK-wide basis (81%, compared with 22% in the wider sample). The sample includes 51% large charities and 42% small charities, which is much lower than 71% small charities in the wider sample (7% did not specify their income). Overall, responses are fairly similar to our wider sample. Where small differences do appear, these are likely to reflect the higher proportion of large charities, rather than geographic differences. This means comparisons with our wider sample are of limited value.

Digital progress and skills in Northern Ireland

Charities are largely at an early stage with digital, with 63% starting out and 37% advancing or advanced, with a strategy in place.
85% have made progress with digital this year.
Priorities for the year ahead are to:
- Build digital skills of staff, volunteers and leaders (71%).
- Improve how we collect, analyse and use data (65%).
- Develop or update our strategy for digital and AI (57%).
Squeezed organisational finances (58%) are the biggest barrier to digital progress, closely followed by a lack of capacity and headspace (46%).
Social media is a priority for 61%, focusing on storytelling and involving people with lived experience (63%).
47% want their CEO to develop a clear vision of what we could achieve with digital.
38% want their trustees to learn more about emerging tech and AI tools.

AI adoption in Northern Ireland

AI adoption is common, with 81% using AI tools. Most are at an early stage with this and only 44% believe they are responding to the opportunities and risks of AI.
AI tools are primarily used in everyday tasks (69%) and creating documents (65%).
Organisationally, AI tools are supporting administration and project management (78%), monitoring and evaluation (38%) and knowledge management (38%).
Key barriers to AI adoption are limited skills and technical expertise (59%), quality concerns (57%), concerns about energy use and environmental impact (49%) and colleagues being hesitant or resistant to AI (44%).
31% believe that traffic to their website has fallen as a result of AI, which is higher than 19% of large charities in our wider sample, despite similar proportions being good or excellent at website and analytics data (38% are good or excellent, vs 40% of large charities in our wider sample).
62% have or are developing an AI policy.
Sector-wide support needed for AI adoption is training for staff and volunteers (62%).

Funding in Northern Ireland

Nearly a quarter (24%) accessed funding from grantmaking trusts and foundations this year. The biggest barrier is insufficient core cost funding for digital costs.
45% say that securing funding for digital costs and projects is a priority this year.
Funding is most needed for training staff, leaders or boards (34%) and developing our use of AI (34%).

Wales

In Wales, 127 charities took part in the survey (8% of the overall sample), double the 60 responses last year. The sample includes 44% large charities and 50% small charities (6% did not specify their income). For the first time, the sample size allowed us to explore differences between small charities in Wales and small charities in the wider sample. Within our sample of 66 small charities in Wales, nearly half (47%) are led by people with lived experience of the issues they address.

Digital progress and skills in Wales

38% of charities in Wales have a digital strategy in place, falling to 21% of small charities, similar to our wider sample. 42% provide digital or digitally supported services, while 49% provide some form of digital inclusion support.

Small charities in Wales:

79% are still at an early stage of digital development, in line with our wider sample.
83% say they have made progress with digital this year.
62% rate themselves as fair, good or excellent at investing in and resourcing digital, compared with 47% of small charities in the wider sample.
29% provide digital services.

Areas of strongest digital confidence (half of charities rating skills as excellent or good):

Data protection and GDPR compliance (82%).
Using digital tools in everyday work (70%).
Cybersecurity (67%, falling to 55% of small charities).
Social media (58%).
Creating engaging content (60%, falling to 47% of small charities).
Making the most of websites (55%).
Using digital tools in service delivery (52%).
Collecting and managing data (51%, but 35% are only fair at this).

Charities have mixed digital skills in the following areas:

Using data to inform decision making (49%, but 30% are only fair at this).
Using digital tools in service delivery (47%, but 41% are only fair at this).
User research has mixed confidence (35% excellent or good, 37% fair).

Charities are struggling with the following areas:

41% are poor at using AI tools in everyday work.
41% are poor at or not undertaking digital fundraising.
35% are poor at search engine optimisation (rising to 48% of small charities).
33% are not resourcing digital effectively.
34% are not keeping up with emerging tech trends.
30% are struggling to use website and analytics data, rising to 36% of small charities.
42% of charities do not undertake paid social media advertising (77% of small charities), whilst 58% do not use Google Ads or other pay-per-click advertising (rising to 77% of small charities).

Digital priorities and challenges for charities in Wales

Top priorities for the year ahead are to:

Build digital skills of staff and leaders (64%, rising to 78% of large charities).
Improve online presence and communications (59%, rising to 66% of small charities).
Improve how we collect, analyse and use data (59%, rising to 76% of large charities).
Develop our strategy for digital and AI (56%, or 74% of large charities and 45% of small).

For social media, 69% want to focus on storytelling and involving people with lived experience (rising to 87% of large charities).

Squeezed organisational finances are by far the biggest barrier that 62% of charities in Wales face (including 66% of small charities and 57% of large charities). This is followed by a lack of capacity and headspace (50%, affecting 44% of small charities and 55% of large). All other barriers are highlighted by less than a third of charities.

AI adoption in Wales

82% of charities in Wales are using AI tools, with 45% actively or strategically using AI across their organisation. Large charities are further ahead (92%, compared to 73% of small charities). A quarter of small charities (27%) are not using AI tools at all. Overall, only 47% (similar for small and large) believe they are effectively responding to the opportunities and challenges surrounding AI.
Only 48% of small charities have an AI policy or agreed good practice, compared to 84% of large charities (64% overall).
AI tools are mainly used for productivity (66% use them for everyday tasks).
Organisationally, charities are using AI for administration and project management (73%), followed by communications and fundraising (39%) and monitoring and evaluation (36%).
Small charities are adopting AI more for social media work (47%) and grant fundraising (47%), as well as administration (73%).
Key barriers to AI adoption are limited skills and technical expertise, affecting 60% of charities in Wales (equal for both large and small charities).
Quality concerns are also a consideration for 54% (and 67% of large charities).
37% of large charities believe traffic to their website has fallen because of AI search.
The sector-wide support that charities in Wales need most is training for staff and volunteers (67%, identical for large and small charities), along with training for leaders and trustees (57%).

Funding for digital costs in Wales

Only 30% of charities accessed funding for digital costs or projects this year from grantmaking trusts and foundations, falling to 25% of small charities.
In the year ahead, 44% of charities see securing funding for digital costs and projects as a priority, increasing to 50% of large charities. There is a gap in demand and supply of funding here.
Both small and large charities need funding to develop their use of AI (42%, 48% large and 38% small). For large charities, top needs are also funding for new digital/AI service development (39%) and dedicated digital roles or staff time (35%).
Small charities’ top funding needs are: training for staff, leaders and boards (46%), developing their use of AI (38%) and organisation and strategy development (35%).

England regions

In England overall, responses for every aspect of the survey directly mirror our main sample (due to a high sample size). There is also a lot of overlap with other regions, due to charities operating on a UK-wide or national scale. For this reason, we focus on regional differences in this report.

Key regional differences in digital progress, capabilities, funding and support needs include:

Squeezed organisational finances are affecting slightly higher proportions of small charities in London (69%), the North West (69%) and the Midlands (67%), vs 63% of small charities in our wider sample.
Progress with digital is lowest amongst small charities in the South West of England, with 32% saying they’ve made none at all. This falls to 14% of small charities in London.
Confidence in basic digital skills is lowest amongst charities in the East of England, with only 52% saying they are excellent or good at using digital tools in everyday work. Confidence is also low amongst small charities in the Midlands (53%), compared to 61% of other small charities.
Social media skills are lowest in London, where only 31% of small charities rate these as excellent or good; this is lower than 46% of small charities in the wider sample, 55% of charities in the South East (which has the highest rating), and 49% of small charities in the South West. Social media is also a priority for more small charities in London (71%, vs 60% of other small charities).
Digital inclusion provision is highest in the combined region of the North East and Yorkshire and the Humber (72%), followed by the North West (63%) and London (60%). It is lowest in the South West (39%). These figures combine large and small charities providing formal and informal digital inclusion support. The lower result in the South West may also relate to lower funding levels.
AI adoption is highest amongst small charities in London (78%), and lowest in the South West (65% of small charities) and the Midlands (68% of small charities).
AI skills are also lowest amongst small charities in the South West and the Midlands, with 59% and 55% respectively saying their skills are poor or they don’t have these skills, vs 46% of small charities in our wider sample.
Use of AI in grant fundraising. This varies significantly across the UK and is highest amongst small charities in London (76%) and the South West (68%). This indicates a relationship with squeezed organisational finances and limited funding in these regions.
Funding for digital costs is lowest amongst small charities in the South West (10%) and the Midlands (18%), compared to 22% of small charities overall. In contrast, 24% of small charities in London and the South East accessed funding.
Support: In the Midlands, 30% of small charities have not accessed digital advice or guidance this year (higher than 17% in our wider sample) and 32% have mainly accessed guidance from colleagues. This indicates few external learning opportunities. Similarly, 29% of small charities in the South West have not accessed guidance or support this year.

London small charities

In London, 88 charities took part in the survey, of which 75% were small charities (66 charities) and 25% were large charities (22 charities). Here, we focus on small charities in London to highlight any differences with small charities in other regions and the wider sample. Among small charities in London, 61% are led by people with lived experience of the issues they address. There is a high representation of global majority-led charities (28%, vs only 13% of small charities in the wider sample), which we know have distinct support needs, as detailed in our ‘global majority-led charities’ profile. In addition, 24% primarily support global majority communities (vs 10% of small charities in the wider sample).

Digital progress and priorities: 74% are at an early stage of digital development, while 26% have a digital strategy in place. Key priorities include building digital skills (60%), digital fundraising (58%), building online presence (57%), and improving data collection and analysis (42%).
Barriers: The biggest challenge in London for small charities is squeezed organisational finances (69%, slightly higher than 63% of small charities in the wider sample), along with a lack of capacity and headspace (69%, vs 50% in our wider sample). In addition, 56% do not have a digital trustee, which is slightly higher than other small charities (49%), and 40% of London charities say they need this change to move forward with digital.
Social media: Only 31% rate their social media capabilities as excellent or good, lower than 46% of small charities in the wider sample. This explains why 71% want to grow their reach and online presence as a priority this year (vs 60% of small charities in our wider sample) and why 46% are developing their social media strategy. 62% want to focus on storytelling, involving people with lived experience (vs 48% of small charities in our wider sample).
Digital inclusion provision: 60% are providing some form of digital inclusion support, vs 52% in our wider sample.
AI adoption is slightly higher in London, with 78% of small charities using AI tools (vs 74% of small charities overall) and 42% using AI tools actively and strategically, vs 34% of small charities in the wider sample. In contrast, AI adoption is at 69% in the South West and 68% in the Midlands. There is also greater interest in AI, with 71% excited about the potential (vs 58% of other charities) and 59% believing their culture supports this through experimentation and new ways of working (vs 39% of other small charities). However, 43% feel they are responding effectively to challenges and risks with AI adoption.
AI use cases: Small charities in London are predominantly using AI for grant fundraising applications (76%). This is much higher than any other region and higher than the 52% of small charities in our wider sample. Other key uses are administration and project management (56%), social media (49%) and communications/fundraising (49%).
AI barriers: Limited skills and technical expertise are holding small charities back in London (57%), along with quality concerns. Linked to this, they most need sector-wide support for training staff and volunteers (57%) and AI tools developed by and for the sector (53%, much higher than other regions and other small charities).
Funding: Overall, a quarter (24%) of small London charities accessed funding this year, with 14% of funding coming from grantmaking trusts and foundations. This is relatively good compared to other regions (22% of other small charities).

South West small charities

In the South West, 66 charities took part in our survey. Here we focus on the 54 small charities but occasionally look at the wider sample, to allow comparisons with other regions.

Digital progress has slowed this year. A high proportion of small charities in the South West are at an early stage with digital, with 87% at the curious (46%) and starting out (41%) stages, slightly higher than 78% in our wider sample. Only 13% have a digital strategy in place. In line with this, a third (32%) say they’ve made no progress with digital in the last 12 months. Whilst it is positive that two-thirds (66%) have made progress with digital this year, this is lower than 77% of charities in our wider sample and other England regions.
The top barriers faced, like all small charities, are squeezed organisational finances (57%) and capacity (56%). A further barrier here is also low digital skills amongst staff and volunteers for 50% of charities, vs 36% of small charities in our wider sample. Similarly, 50% say their top priority is to build digital skills internally.
AI adoption is limited. 65% of small charities in the South West say they are using AI tools, lower than 74% of other small charities. Similarly, 59% say they are poor at or not using AI tools. Again, this is higher than other regions and the 46% of small charities in our wider sample. Only 22% feel they are responding to the opportunities and risks surrounding AI, vs 41% in our wider sample. AI tools are mainly used for documents (46%) and everyday tasks (41%), as well as grant fundraising (68%). Again, limited skills and technical expertise are the biggest barrier to AI adoption (67%) for small charities in the South West.
Limited funding may play a role in lower digital progress and adoption in the South West. Only 10% of small charities in the South West accessed funding for digital costs and projects in the last 12 months (7% from grantmaking trusts and foundations). This is much lower than 22% in our wider sample and lower than any other England region.
Digital inclusion provision is lowest in the South West (39%) compared to other regions, such as London (60%), the North West (63%) and the North East, combined with Yorkshire and the Humber (72%). These figures combine large and small charities providing formal and informal digital inclusion support. This may relate to lower funding levels.

Midlands small charities

To create a meaningful sample for analysis, we combined responses from the West Midlands (48 responses) and the East Midlands (30 responses), giving a total of 74 charities (note that four charities work in both regions). Here we focus on the 60 small charities, to compare with small charities in the wider sample and in other regions.

Digital progress: A high proportion of small charities in the Midlands are at an early stage with digital, with 83% saying they are curious (38%) or starting out (45%) regarding digital skills and adoption, compared to 78% in our wider sample. Only 17% have a digital strategy. Similar to small charities in our wider sample, it is positive that 77% have made progress with digital this year.
Low digital confidence: However, confidence in digital skills is low in the region, with only half (53%) saying they are good or excellent at using digital tools in everyday work (vs 62% overall).
Top priorities and barriers for small charities in the Midlands are building an online presence (60%) and building digital skills in their organisation (57%). However, squeezed organisational finances are a key barrier for 67% (vs 63% of other small charities).
Systems: 40% of small charities in the Midlands are struggling with their systems and databases, with 27% saying they don’t have these – double the national average of 14%.
AI adoption is slightly below other regions, with 68% using AI tools (vs 74% overall). However, over half (55%) say their skills are poor or non-existent (vs 46% in our wider sample); this is higher than 36% in London and lower than 59% in the South West. AI tools are mainly used to create documents (65%) and in administration (51%). Only 37% feel they are responding to AI risks and challenges. The biggest barrier they face is limited skills and technical expertise (63%).
Support: 30% of small charities in the Midlands have not accessed digital advice or guidance this year (higher than 17% in our wider sample), and an additional 32% have mainly accessed guidance from colleagues – indicating few external learning opportunities.
Limited funding may play a role in lower digital progress and adoption in the Midlands. Only 18% of small charities accessed funding for digital costs and projects in the last 12 months, of which only 10% was from grantmaking trusts and foundations. This is slightly lower than 22% in our wider sample and lower than other England regions (apart from the South West). It is noteworthy that 37% say they have not considered or tried to seek funding for digital costs (vs 29% overall), as an indicator for low digital confidence.

South East of England small charities

In the South East, 101 charities took part in the survey, of which 77% were small charities. Here we focus on the 78 small charities, allowing us to highlight any key differences compared with small charities in the wider sample and in other regions. Overall, results are mostly identical to the main sample, with highlights including the following:

Digital progress: A high proportion of small charities in the South East are at an early stage with digital, with 76% saying they are curious (41%) or starting out (38%) regarding digital skills and adoption, similar to 78% in our wider sample. Only 21% have a digital strategy. Similar to small charities in our wider sample, it is positive that 79% have made progress with digital this year.
Priorities and barriers: Priorities this year are to build digital skills (56%), but squeezed organisational finances (62%) pose a significant challenge.
AI adoption: Three-quarters (75%) of charities are using AI, but 42% are at the stage of exploring this. Similar to our wider sample, 61% are using AI tools for administration and 56% for grant fundraising.
Digital funding: A quarter (24%) have accessed funding this year, with 16% accessing funding from trusts and foundations, similar to our wider sample. For small charities, a third (34%) have not considered trying to access funding, whilst 26% say core costs are insufficient. Top funding needs are training staff, volunteers, leaders or board (60%, higher than 45% of small charities in our wider sample) and developing our use of AI (37%).

East of England

Our sample in the East of England is relatively small (52 responses) and for this reason we focus on all responses, rather than just small charities.

Digital progress: We can see that a high proportion of charities are in the early stages with digital (85%). This is higher than any other region. For this reason we haven’t looked at small charities separately, or combined responses with other regions. The top priority is building digital skills (56%); on the flip side of this, the biggest barrier identified is low digital skills of staff and volunteers (52%).
Digital confidence in basic digital skills is lowest amongst charities in the East of England, with 52% saying they are excellent or good at using digital tools in everyday work, compared to 64% in our overall sample.
AI adoption: 75% are using AI tools, with half (51%) only at the stage of exploring this, rather than actively using tools across their organisation (vs 41% at the exploring stage in our wider sample). AI is mainly used for administration (51%) and social media (49%). However, only 31% say they are responding to AI risks and opportunities. Similarly, 52% are not keeping up with emerging tech developments. To move forward with AI, 62% most need training for their leaders and trustees, similar to our wider sample.
Digital funding: 28% have accessed funding for digital costs this year, 21% from trusts and foundations. This is similar to other regions. 28% have not considered trying to access funding and 26% say core costs are insufficient to include digital costs. Top funding needs are training staff, volunteers, leaders or boards (49%) and developing our use of AI (40%).

North West of England

In the North West 50 charities took part in our survey, of which 37 are small charities (70%). Whilst our sample of small charities here is too small to examine independently, this does mirror the profile in our wider sample, providing a helpful comparison. 55% are led by people with lived experience of the issue they address, with a high proportion of charities supporting local communities (54%), people in poverty (42%), children and young people (2%), and older people (38%).

Digital progress: 78% are at an early stage with digital (slightly higher than 72% in our main sample), whilst 22% have a strategy in place. 78% have made progress this year.
Priorities and barriers: Priorities for the year ahead are to improve online presence (66%) and build digital skills of staff and volunteers (56%). The biggest barrier for 70% is squeezed organisational finances; this is higher than other regions and the national average of 63%.
Poor hardware: 30% say their equipment, hardware and devices are holding them back, higher than the national average of 19%, whilst nearly half (46%) say they need to revamp their website, higher than the national average of 36%.
AI adoption is good, but skills are low: 76% are using AI and 37% are doing so actively and strategically (39% are exploring). This is mainly to support administration and project management (50%), grant fundraising (47%), communications (44%) and social media (42%). However, confidence in AI skills is low in the North West, with only 6% rating themselves as good or excellent, compared to 20% of other charities. This is lower than all other regions. Similarly, only half (50%) feel they are responding to AI risks and opportunities. Limited skills and technical expertise are the biggest barrier (53%) along with a lack of training or support to upskill (51%).
Digital funding: Similar to our wider sample, 23% have accessed funding in the past year for digital costs, of which 19% accessed this from grantmaking trusts or foundations. A third (33%) say a key barrier is that they hadn’t considered or tried to access funds for digital costs.
Funding needs: 38% say it is a priority to secure funding for digital costs and projects this year. Funding is most needed for software and licences (42%), along with IT, devices and equipment (42%).

Yorkshire and the Humber and the North East of England

To create a meaningful sample for analysis, we combined responses from charities in the North East (29 responses, of which 24 are small charities) and Yorkshire and the Humber (48 responses, of which 35 are small charities), with 1 response working in both. Combining these responses gives a total of 76 charities, of which 75% are small charities and 53% are led by and for people with lived experience of the issue they address. This mirrors our main sample, allowing for direct comparison. We also found limited differences between small charities in this region and other regions, or the wider sample. For this reason, we focus on the overall sample of 76 charities, small and large, in Yorkshire and the Humber and the North East.

Overall, responses are very similar to our wider sample and other regions (except London), including the North West of England. Highlights include:

Digital progress: 72% are at an early stage with digital adoption, whilst 28% have a strategy in place. A high proportion of 57% rate their CEO’s digital skills as excellent or good, but 43% need their CEO to develop a clear vision for digital. This is similar to other small charities in our wider sample.
Priorities and barriers: Key priorities for the year ahead are to improve online presence and communications (59%) and build digital skills (55%).
AI adoption: 76% are using AI tools, with 34% doing so actively or strategically, primarily for administration and project management (50%) and grant fundraising (44%). However, only 33% believe they are responding to the risks and opportunities surrounding AI. This is lower than the North West (50%) and the national average (41%).
Limited AI skills and barriers to using AI: 53% have limited or no skills in using AI tools, with 25% rating themselves as poor and 28% saying they do not use AI. The biggest barrier is data privacy, GDPR and security concerns (55%), followed by limited skills and expertise (43%). Only 41% have an AI policy or are developing one, slightly lower than the national average (47%), which could be exacerbating safety fears and skills gaps. The biggest sector-wide support need identified by two-thirds was training for staff and volunteers around AI (66%).
Digital inclusion support is provided by 72% of charities in the North East and Yorkshire and the Humber; this is more than any other region (63% in the North West and 60% in London).
Digital funding: In the last year, 29% accessed funding for digital costs or projects, with 23% accessing funding from grantmaking trusts and foundations, similar to other regions. Funding is needed most for training staff, volunteers, leaders or boards (50%) as well as for IT, devices and equipment (30%).

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