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Service delivery trends for charities in 2023
07 Nov 2023by Laura Stanley
We explore five key service delivery challenges facing charities, according to the State of Service report from Salesforce
Download the State of Service report
Between a global pandemic, the cost-of-living crisis, and whispers of a recession, it feels as though the charity sector has been leaping from challenge to challenge in recent years. Amid every crisis comes a rise in demand for services, while concerns are raised over fundraising as donor circumstances change at the same time.
For charities, maintaining service delivery during these difficult times is of the utmost importance. Indeed, with costs increasing and demand for services growing, research from Charities Aid Foundation found that 71% of charity leaders are worried about the impact of the cost-of-living on their service users, while more than half (53%) of charities are worried about surviving it themselves.
As we learned during the pandemic – when a third of services had to be cancelled due to lack of digital technology or skills – the future of service delivery lies in digital. The State of Service for Nonprofits report, from Salesforce, reveals that, while “the increase in demand that started with COVID-19 won’t lessen any time soon”, charities are “having to be smarter in meeting it”. That means embracing digital technology to automate simple processes, tailor the services they deliver to beneficiary needs, and much more.
The State of Service report examines key trends in service delivery and shares how digital technology can help the charity sector meet rising demand head on. Below, we’ve summarised three of those trends. You can download the full report here.
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Human connection is a priority
Almost three quarters (73%) of service users expect organisations to understand their unique needs and expectations, the report states. Yet only one in five non-profits feel confident that they deliver excellent service.
The report adds that charities must think about how they connect with their service users, noting that customer expectations had generally risen since the pandemic. It also revealed key ways that charities are failing in this area.
Three in five service users say it generally feels like they are communicating with separate departments, not one organisation, while two thirds say they have to repeat themselves or re-explain information to different representatives.
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Automation is welcome
It might seem counterintuitive to suggest that automation is necessary for charities at a time when they are also prioritising human connection.
However, these two goals need not be mutually exclusive – though the balance between speed and quality of service is one that three quarters of service professionals say is hard to get right. Around three in five (59%) of service professionals say speed and quality of service is equally important, with 48% of organisations offering online chat/live support and 52% providing online portals to help users access information and services.
The report shows that this is welcome; 60% of service users prefer self-service tools for simple questions, while 98% of service professionals cite time-saving and increased focus on customers as benefits of such automation.
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Digital solutions are the future
Digital tools are invaluable in helping charities serve their communities while balancing the books – and much of the charity sector is already looking ahead. Tools such as Artificial Intelligence (AI) can help charities improve their service efficiency and make them more cost-effective.
The report shows that 39% of non-profits are using AI (20 percentage points less than commercial organisations) while 15% are piloting the technology or planning to implement it in the next 18 months.
Charities are more on board with tried-and-true technology such as mobile apps and chatbots to deliver services. More than two thirds are using text or SMS to deliver services, while 58% are using mobile apps. More than half are either using chatbots, piloting them, or planning to in the next 18 months.
“Among nonprofits, a tougher funding environment means investment has been slower to pick up post pandemic,” adds the report. “However, where budgets allow, tech is also facilitating new, efficient ways of doing things, from self-service options to process automation. Where budgets are more challenging, nonprofits are making the most of their existing solutions, finding ways to get more from them, and make budgets go further.”
Laura Stanley
Laura Stanley
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