Infographic: Digital transformation in the charity sector

Without a strategy in place, 70% of digital transformation projects are doomed to fail. Yet what exactly needs to go into such a strategy is unclear. Charities, in particular, are more likely to lack a clear digital direction, with research revealing that fewer than half have a digital strategy in place.  

Digital transformation, however, is essential for charities to deliver better services, to reach more donors, and improve efficiency in a sector that is notoriously stretched for both time and resources. In order to understand more about the state of digital transformation in the UK charity sector, we launched a survey alongside non-profit experts TES, which revealed some fascinating insights about what charities need to be able to deliver better digital projects in the future.  

Below, we’ve summarised some of the key findings from the survey and compiled them into a handy infographic, which you can download below. 

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The future of digital transformation in the UK charity sector 

Digital remains a priority 

The Future of Digital Transformation in the UK Charity Sector survey, in partnership with TES, revealed that 46% of charities say digital has become a higher priority for their organisation since the pandemic. More than one in ten (14%) said it had become a much higher priority, while only 5% of charities said it had become a lower priority. 

Indeed, that so few charities deem digital a lower priority, even during the cost-of-living crisis and other external issues, demonstrates the understanding across the sector that digital can provide the solution to these problems. Investing in digital is not a choice for charities, it is essential.  

The digital maturity gap emerges 

The survey found that the percentage of charities that said digital had become a higher priority rose to 52% among large to super-major charities. Similarly, larger charities were more likely to say digital was a much higher priority, indicating that charities with more resources and budget are more likely to invest in digital technology as a matter of urgency.  

The digital maturity gap between small and large charities was also reflected when asked what phase of digital usage organisations felt they were at. While 43% of small to medium charities said they were just starting out with digital, only 27% said they were advanced or advancing. By comparison, 89% of large to super-major charities said the same.  

Overall, only 7% of the sector said they were at the advanced stage of using digital, meaning that digital is integral to their organisational strategy and embedded in everything they do. 

Digital requires a strategy 

More than a quarter of charities have no business, digital, or IT strategy, the survey found. Out of the three, charities were most likely to have a business strategy (69%), while a fifth (21%) have a digital strategy and only 17% have one for their IT. Only 8% of charities have all three.  

This is especially concerning given the research we pointed to earlier in this article. If 70% of digital transformation projects are likely to fail due to a lack of strategy, the sector is failing to heed this warning. 

Charities need more resource 

If there is one constant in the charity sector, it is that we will always need more resource. This remains true when it comes to digital. Only 15% of charities say they have adequate internal resource to support their digital strategy. Perhaps unsurprisingly, the smaller the charity, the less likely they are to have adequate internal resourcing for IT and digital transformation.   

Concerningly, more than a quarter of charities (26%) are not sure if they have adequate internal resourcing to support their digital strategy, suggesting they are not sure what adequate resourcing looks like and are unsure what they need to make a success of their digital usage.  

Fortunately, charities recognise the need for more help on this matter, with 70% of charities outsourcing some or all of their IT provision.  

Download the infographic below to discover more about digital transformation in the UK charity sector and share with your charity leaders.