This is the ninth Charity Digital Skills Report, the annual barometer of digital and AI adoption, skills, attitudes, funding and support needs across the sector. Every year since 2017 we’ve had the privilege of hearing how charities’ experiences with digital are developing and what they need in terms of funding and support. We know how challenging this year has been for the sector and we are very grateful to the 672 charities who took the time to contribute their invaluable insights, along with those who took part in the discovery phase and testing of the survey. All of them have helped us understand where we can gather data that will be most helpful to the sector now.
The 2025 report would not have been possible without our report partners Catalyst, Digital Candle, Lightful, Microsoft and Torchbox. They have all been incredible sources of guidance as we developed the report.
In 2025, our aims were to:
- track charities’ changing digital priorities, skills, confidence and attitudes
- understand how charities are progressing with AI
- identify the support and funding charities need to move ahead with digital
- build further insights about the needs of small charities
- understand specific priorities and barriers facing charities led by marginalised groups.
This year, we have built on our diversity, equality and inclusion approach, developed with our consultant Eshe Kiama Zuri. Once again Eshe has helped us undertake targeted outreach with specific marginalised groups so that we can gather data about their digital funding and support needs and share those with funders. We very much appreciate Eshe’s insightful approach and support.
The data in this year’s report tells us two stories that create a tension in the sector’s continuing digital and AI adoption. We see charities working hard to balance significant financial pressures while adapting to accelerating technological change. The cost of living crisis continues to squeeze the sector, with 69% of charities telling us that their strained finances remain the biggest barrier to digital progress.
The cost of living crisis is constraining charities’ headspace as much as their budgets. Just 44% of charities now operate with a digital strategy in place, down from 50% last year. Despite these challenges, it’s positive that 63% of charities have still managed to make digital progress this year, and 75% continue to prioritise digital within their organisations.
Our research also reveals substantial growth in AI adoption, with 76% of charities now using AI tools compared to 61% in 2024. However, it is concerning that so many charities rate their CEO and board’s AI skills as poor, with many reporting that their AI governance is lacking. This may well improve in 2026, with half (49%) of charities prioritising developing their strategy for digital, data and AI, 74% recognising that AI developments are relevant to them and 48% currently developing an AI policy (68% of large charities). These stats indicate that the sector could be at an exciting – and pivotal – moment of change.
The report underscores the ongoing need for capacity, funding and skills development across the sector. The digital divide between large and small charities remains stark, with 68% of small charities still at early stages with digital. These smaller organisations are more likely to be led by people with lived experience and from marginalised groups, raising important questions about digital equity. Once again this year, we see that AI is widening the gap between large and small charities and this could deepen inequality both within and outside the sector.
The juxtaposition of growing AI adoption alongside a declining strategic approach gives us pause for thought. 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 co-ordinated support from funders and support organisations to ensure responsible and impactful digital transformation.
Thank you for supporting our report.
Zoe Amar and Nissa Ramsay