Insights
We look at the challenges set to define 2023 and explore the digital trends that will help organisations meet those challenges
Normality rules the day. Sort of. Compared to last year, at least.
The pandemic has settled and we are faced with a series of very different crises, including the struggling Sterling, the war in Ukraine, rising inflation, the cost-of-living crisis, the consequent cost-of-giving crisis, and so on. And, on top of all of that, the climate crisis continues with not enough meaningful action from governments worldwide.
So, yes, it’s a challenging time in terms of the economic and geo-political landscape. And digital, as we saw in previous years during the pandemic, can help charities navigate the complexities, find opportunities amid pessimism, and come out stronger.
The digital trends of 2023 are largely centred around rising to meet these challenges. We’ll see charities using digital to overcome the cost-of-living crisis and using sustainable tech to tackle the climate crisis. We’ll see shifts in the way social media is used, with an emphasis on protection, diversification, and caution. And we’ll see cyber security largely remain in front of minds due to emerging threats.
2023 is a year of opportunity amid the challenges. And charities need to rise to the occasion. In the following article, we explore some of the digital trends set to define 2023.
Let’s begin.
Skip to: Focussing on sustainability in tech
Skip to: Using digital to tackle the cost-of-living crisis
Skip to: Remembering cyber security amid the cost-of-living crisis
Skip to: Investing in automation with AI
Skip to: Adopting cashless and contactless options
Climate change is the most pressing matter of our time. The climate crisis poses an existential threat, one that governments and organisations have not done enough to mitigate. It is essential that we take effective and meaningful action in the coming years to prevent its potentially devastating impact.
Charities should champion climate action. People often look to charities for support, guidance, moral advice, and much more. Like it or not, charities need to effectively lead by example, showing others in our communities and around the world how to engage in climate action and protect our planet.
The use of digital and tech has a huge impact on the climate. It is estimated, for example, that the IT sector is responsible for more than 2.8% of our global greenhouse gas emissions. Sustainable tech goes some distance towards mitigating that impact, allowing charities to remain environmentally-friendly while still embracing digital.
Sustainable tech is an umbrella term for tech that fosters social development and reduced environmental and ecological risks. Famous examples of sustainable tech include:
Lots of sustainable tech options are simple alternatives to pre-existing everyday tech items. Consider, for example, some of the following:
These are just a few small examples. But it shows what charities can do, given space and time to research. Think about all recycling and reusing that your charity can do, along with any options to buy second-hand hardware. The key is to ensure all tech decisions consider the environment.
Sustainable tech is the future. Charities in 2023 will further embed sustainability in their practices and strategies – and sustainable tech should form a large part of that change. The key is to remain cognisant of the impact of the tech you use and ensure that you reduce the environmental impact.
One route is a tech audit. You can scope your sustainable goals while tracking your greenhouse gas emissions or monitor your carbon footprint. Sage offer an easy guide for tracking your footprint and various online calculators can help you to calculate your greenhouse gas emissions, too. These include, among many others, The Carbon Trust and The McKay Carbon Calculator.
You should track the eco-friendliness of your website, too, which is often a massive part of a charity’s digital offering. There are numerous tools online that can massively help you lessen the environmental impact of your site and many ways to combat and reduce its impact on the environment.
For example, you can reduce the number of clicks it takes to reach your most popular content, you can substantially reduce the number of pages loaded and energy used. Or minimise the use of non-system fonts, which use more energy than system fonts.
The Sustainable Web Manifesto is a great starting place for charities looking to reduce their digital footprint.
The cost-of-living crisis has been well-documented, featuring in all major news publications in the past few months. It refers to the fall in ‘real’ disposable incomes in the UK since late 2021, driven by labour shortages, an energy crisis, the tail-end of the pandemic, the war in Ukraine, and other factors.
According to the Office for National Statistics, 91% of adults have experienced an increase in living costs compared to a year ago (based on public opinion of 5,000 households in the UK). Almost three-quarters (73%) reported that costs have increased significantly in the last month alone.
The cost-of-living crisis has a direct consequence in the charity sector: the cost-of-giving crisis. Increases in the price of fuel, energy, and everyday items has a disproportionate impact on the charity sector, with 55% of the public stating that their financial situation makes it harder to donate
Charities need to mitigate against a funding shortfall. One option, as we have shown in our fundraising trends article, is to practice income diversity, finding new ways to raise funds and not simply relying on tried and tested (and often diminishing) channels. But digital provides another opportunity.
Digital can help tackle the cost-of-living crisis in various ways. It can ensure a greater return on investment, allowing you to reduce operational costs, drive operational efficiency, improve service delivery, overcome geographical boundaries, reach more people with less expense, and so on.
In times of economic hardship, digital becomes essential. Indeed, according to Lloyds Bank UK Digital Index, digitally aware charities are 28% more likely to report an increase in turnover or funding than less digital charities. And more than half of charities cite cost saving as an advantage of digital.
For many charities, simply saving money for themselves and services users on simple things such as travel costs has become essential. Digital allows users to gain similar access to services with less expenditure, so it is likely we will see an even greater adoption of digital solutions in 2023.
We will end with a word of caution. Of course, all of the above is important, but the use of tech and digital opens charities up to vulnerabilities. Yes, charities need to be reactive, but they also need to be proactive – and that means ensuring cyber security measures alongside adoption of tech.
Cyber security is one element of charity operations that is neglected in times of hardship. During the pandemic, we saw increasing vulnerabilities from charities who were (understandably) more focussed on providing a service. But cyber security is essential for the continuing operations of your charity.
Let’s dig a little deeper. In simple terms, cyber security is the protection of systems and networks from theft or damage. Cyber security protects and secures hardware, software, electronic data, and other parts of your network, ensuring there is no disruption or misdirection in the services they provide.
Cyber security is important because devices have become essential to our ability to delivery services, raise funds, and continue daily operations. Any act that prevents our ability to use devices poses a serious threat to our organisations. And cyber crime is certainly a threat.
Let’s look at some of the statistics. Consider, for example, that according to the Charity Digital and National Cyber Security Centre (NCSC) report, The state of cyber security in the UK charity sector:
The above shows that charities are broadly aware of the threat of attack, but seemingly do very little to prevent that threat. There is an awareness of cyber crime, but few charities taking it as seriously as they should.
That is a problem, one that is particularly widespread in the charity sector. Cyber attacks can lead to reputational damage, huge financial costs, and various legal consequences.
The following are the main cyber attacks that could face you could face – click the link to find our more in-depth definitions and our advice on how charities can mitigate risk:
The attacks all pose various threats. The cost-of-living crisis has brought additional threats, especially around phishing emails. The cost-of-living crisis also creates a situation where charities are less able to pay for adequate protection, rendering themselves open to vulnerabilities.
It’s a double-edged sword: charities have less money to spend on cyber security at a time of heightened cyber attacks. But there are plenty of simple (and cost-effective) steps that charities can take to protect themselves.
Consider some of the below, for example.
Endpoint security software also provides many security features, such as the blocking of malicious websites to help prevent users from visiting sites that are known to contain malicious links.
Larger charities can also opt to use a security gateway appliance that filters all internet traffic arriving at your site from malware and other cyber threats.
All your computers should be protected with endpoint security software, such as BitDefender, GravityZone or Norton Small Business, which provide anti-virus and anti-ransomware capabilities.
Passwords should be at least 13 characters and made up of upper case and lower case letters, along with special characters such as ‘!’ and ‘?’. The NCSC advises using three random words to make it easier for users to remember their passwords and harder for cyber criminals to guess.
One effective way to ensure robust passwords is by using a password manager program, such as LastPass, Dashlane, or 1Password. Many endpoint security software options will include password management, so do some digging if you’ve purchased any of the abovementioned options.
Cyber security breaches often involve hackers exploiting vulnerabilities in your software. That might be because you have not downloaded the latest versions or updated your applications. It is essential that you are running the most up-to-date version of your software.
Charities, at a minimum, should regularly check for updates at start up and ensure their operating systems are set to update automatically. Making sure all updates are installed is referred to as ‘patching’ or ‘patch management’.
Phishing emails account for around 80% of all reported cyber breaches. And that number is likely to increase during the cost-of-living crisis. The solution is simply awareness.
Charities need to provide training to help staff spot phishing emails. The training should teach them to recognise malicious links and attachments and, importantly, teach them not to click on them.
For more information on preventative measures, check out the following:
The other element of effective cyber security is reacting to a cyber attack. We recommend the following processes, all of which are documented in more detail in our guide to cyber security:
To really understand cyber security, you’ll need to go even further, staying abreast of the latest trends and broadly immersing yourself in the cyber security landscape. Lots of resources are available to accommodate that search for knowledge.
The NCSC has plenty of tools – such as Early Warning and Mail Check – that can help you improve cyber security, all of which are free-to-use and simple enough not to require excessive knowledge.
Charities can use IASME’S Cyber Essentials Readiness Tool to see if they have the five core controls necessary to prevent a cyber attack and become cyber certified. The tool will help you assess your current security and should give you information about where you may need to improve.
And, of course, Charity Digital’s Exchange software donation programme has been helping charities save money on essential software for more than 18 years. Registered charities can receive as much as 96% off the retail price of software, including popular security tools from Bitdefender and Symantec, as well as tools like Avast and even add-ons to existing programmes, such as Windows Defender.
So check out the above and prepare yourself. 2023 may be a year where cyber criminals aim to further penetrate the charity sector, but with simple protective steps charities can stop them in their tracks.
We said it last year and we’ll repeat it in 2023: automation is essential for the charity sector. We’ve seen other industries fully embrace artificial intelligence (AI) and quickly reaping the rewards: increased productivity, less time spent on menial tasks, no room for errors, fewer mistakes, and so on.
Consider the following statistics:
The world is turning to AI for solutions. But charities have been slow on the uptake. The only area of AI that many charities have embraced is chatbots. Chatbots use natural language processing to make life easier for all involved.
The chatbots can minimise customer services interactions, for example, by answering basic questions without the need of a human.
Is This OK? is one example. The chatbot was produced by a partnership between Runaway Helpline and Childline, with funding provided by Children in Need. Targeted at those aged between 13 and 18 looking for support or feeling pressured or confused, the chatbot asks some simple questions before offering useful information or connecting the young person to a real person for a conversation.
The chatbot brings many benefits, including round-the-clock care, constant presence, ability to deal with basic comms, freeing up human time, offering effective support and guidance, and much more. But chatbots are still a very basic use of AI. Their success shows that charities can go further.
2023 is the year charities embrace AI. The question of which AI will best serve your charity evidently depends on the nature of your service, your users, and your cause. Below is a quick list uses of AI, which charities should research and consider if any of them could benefit your charity:
That is by no means an exhaustive list. But it shows some of the many options available to charities that go beyond the simple chatbot. As mentioned, organisations should do their research, think about resources and capabilities, and investigate the benefits of adopting the best possible AI services.
This one is all about fundraising. We mentioned the same point last year, and we will likely raise the same point next year, because it’s so essential. In 2023, charities need to go even further to ensure they offer cashless and contactless donation options – many charities are still failing to do so.
Here are some interesting facts about fundraising:
The core message is clear: the brave new world is digital – and that includes fundraising. Charities need to ensure that they offer the best new payment solutions, prioritising cashless and contactless.
All charities should keep an eye out on the following:
The above is not an exhaustive list, but just old and new methods that charities can use to receive money from donors. Each method has a corresponding article that can help charities take advantage.
Charities need to look at the above and decide which they need to offer. Charities of the future can no longer afford to rely on tin-buckets, or even just point of sale devices.
More and more fundraising options rise every year, making donations easier, and too many charities jump on the trends too late.
Charities need to stay ahead of the trends. They need to prepare for the challenges that are expected in 2023. They need to tackle the cost-of-living crisis, embrace sustainability, diversify socials, and adopt new and emerging tech that will improve operations and broadly give a boost to the organisation.
2023 is a year of meeting challenges. It is a year when charities will need to find opportunities amid those challenges. And digital is the best route to opportunity, the best route to success.
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