Digital Acceleration and Future of Charitable Organisations

In this edition of our Digital Acceleration for Charitable Organisations Newsletter, we explore how digital transformation is driving efficiency and new opportunities for charities, while also highlighting ongoing challenges in securing sustainable tech funding and bridging the digital skills gap.

Spork Digital
15 August 2024
11 min

Key Takeaways

Changing the Perception of Technology Costs: Overhead costs, including technology expenses like annual subscriptions and licence fees, are critical for operational efficiency but often neglected by funders. Educating funders about the importance of ongoing technology investments is crucial. Charities must advocate viewing technology as a long-term operational necessity rather than a one-time expense.
Exploring the Digital Possibilities: Charities need guidance in crafting digital strategies and understanding the potential of AI and other advanced technologies to streamline operations and data analysis. Simultaneously, there’s a need to bridge the skills and accessibility gap for young people entering the tech industry.
Technology Partnerships are Key: Digital transformation is a long journey and not one that charities can make effectively on their own. They need technology partners to help them understand the possibilities, develop the skills, and sell their plans effectively to secure funding for technology initiatives.

Exploring Tech Possibilities

The COVID-19 pandemic forced many charities to shift gears and implement digital solutions to keep operations going. This shift, while unexpected, revealed a world of possibilities. In the wake of this disruption, charities are seeking technology solutions that would enable them to serve their communities more effectively. However, there are challenges as well as possibilities.

Limited budgets and existing resources are a constant hurdle for most charities. Securing funding specifically for operational digital transformation can be even more difficult, as funders often prioritise projects with more direct impact.

“We can see how we could potentially get a developer paid for in the first year to develop digital, but getting annual subscriptions and licence fees covered is really difficult as people do not see that as a project cost. To be viable, sustainable, well-run organisations that carry out exceptional work, you do have those sorts of overheads. So that’s a real challenge for us.”
Susannah Behr, Head of Programmes (Employability & Skills), Mayor’s Fund For London

The support charities need for digital transformation is not just financial either. Charities are eager to build their digital capabilities and find new ways of working but often lack the internal expertise or resources to do so effectively.

Partnering with tech consultancies can bridge this gap. These partnerships can help charities understand the technological landscape, develop internal digital skills, and craft targeted proposals to secure funding for long-term technology initiatives.

Finally, there is the challenge of unintended consequences stemming from widely available solutions—that a solution, if not carefully implemented, can cause more problems. An example of this arose during the discussion on the challenges young people face entering the workforce.

D.I.C.E. Director Kianu Glasgow highlighted how a lack of experience with a job application process was exacerbated by the difficult user experience in portals, providing a frustrating barrier to those wanting to take up an opportunity

“Someone shares an opportunity in a WhatsApp group and a young person wants to apply for it. They’ll start looking at it and then the brain checks out halfway through. And they think I’ll do it later. So, a situation is created where a second solution is needed to overcome obstacles inadvertently created by the first one. It comes down to this: how many of you received help from your parents in those first few steps? How many of your parents checked your first application? This is why we’ve created our program to kind of do that. If they do need to apply, then they can book an online session and support them to do it. So, there’s a lot of hand-holding.”
Kianu Glasgow, Director, D.I.C.E

Ultimately, charities need sustained support from the government, funders, and tech companies to navigate this journey effectively and unlock the full potential of technology to further their missions.

The Challenge of Funding Overhead Costs

It’s very unusual for donors to get excited about helping the charity pay its utility bills and cover other overhead costs. And yet, charities need to keep the lights on, rent offices, and pay staff. And because tech is no longer a luxury but an operational necessity, those overhead costs now include web hosting fees, software subscriptions, and developers’ fees, and so forth to create the tools that allow charities to function most effectively.

Our panel described getting a one-off digital project as easier to get funding for than covering technology costs long-term. That, they said, could be a real struggle.

So, the question was asked—How do we change the mindset about what impact means and the role technology can play in that change?

Charities—in collaboration with technology partners—must advocate for viewing technology as a long-term operational necessity rather than a one-time expense, to change the view of them from project-based to product-based, as Spork’s own Gawain Hammond mentioned. That collaboration can also produce applications aimed at technology funding which makes the purpose and value of such investments.

“The difference between project and product is value. Products have a value. They’re going to achieve an outcome, something measurable. Many businesses have a PMO—project management office, not a product management office—and all it is ‘Have you done the thing you said you were going to do?’ Nobody checks, ‘Did it achieve the outcome we want?’”
Gawain Hammond, Development Lead, Spork

Educating funders about the importance of ongoing technology investments is crucial so that they understand the need to support ongoing tech development and maintenance to enhance operations—and by extension, successful delivery of their services.

Importance of Data and Evidence in Fundraising

The discussion around the competitiveness and detailed nature of fundraising applications highlighted a crucial point: charities must present proposals with detailed metrics and success stories to secure essential funding. That can make the grant application process incredibly time-consuming and— if data isn’t readily available and easily accessible—very frustrating.

How to make that process less time-consuming, more effective, and—because many funds require regular renewal—easily replicated and updated.

Here’s where technology and advice from a trusted technology partner can become a real game-changer.

There is a vast range of cloud-based data management platforms on the market—all of which make it easier to track key metrics and generate different kinds of reports. collect, store, and analyse data efficiently. But with so many choices, each offering numerous options, how do charities know which will serve them best and how to use it most effectively?

There may also be ways in which AI can be used to streamline the process—whether it is used to pre-populate applications by automatically extracting data from a charity’s existing system or fact checking and proofing applications in real-time to red flag missing information, inconsistencies, or areas that could be made more robust.

But these are not things most organisations are in a position to explore on their own. They need the assistance and input of those with technological expertise.

Enter the technology partner who can find the tools that will help charities turbo-boost their data, and tell the stronger, clearer story that gets them the funding they need to continue their work.

Other Potential Roles for AI

“In London, we have around 300 languages spoken by people from different backgrounds, but many of these languages are at risk of being lost. Language retention is quite poor due to a shortage of teachers, insufficient learning hours and limited resources. I think there might be an opportunity for technology to play a role in preserving heritage and sustaining these languages. Having people who are proficient in world languages as their mother tongue, could be very useful for accessing international markets.”
Rosy Awwal, Foundation for Future London

Inevitably, AI came up throughout the conversation. No one had implemented any large AI-fueled process or programme, but most had tested the waters in one way or another.

While experiences with it varied from panellist to panellist, everyone agreed about its potential to improve operational efficiency and had ideas about how it might work within the context of their particular organisation and for society as a whole.

These include using AI for feedback processes, language retention, automating administrative tasks, and optimising project proposals for maximum impact.

Communication Challenges of Diverse Donor Bases

“Brand theory works in the same way no matter what sector you’re in; you want your story to be as simple and powerful as it can be, then you need to develop a top line brand message that can spearhead your narrative and work as a gateway to the many types of conversations you want to have with your various audience groups. In an ideal world, everything can be steered and inspired by your topline message; from marcoms and internal culture, to PR, social media, investor relations, or live events.”
Max Lawrie, Independent Brand Consultant

That can be an expensive and complex undertaking and charities, as we know, constantly have to navigate resource and budget constraints.

How can technology make communications more flexible and efficient so that marketing and fundraising teams can customise the message to the giver while ensuring the message remains on-brand, without eating up budgets and resources entirely?

Most charities use a standard off-the-shelf CRM system to segment their donor base by giving history, demographics, and interests, allowing for a certain level of personalisation and targeting in communications with their base. Those off-the-shelf systems generally work well, but what if there were ways to make it work even better?

If charities lack the technological expertise to customise or expand their CRM functionalities on their own, a dedicated technology partner is invaluable. A technology consultancy can assess the charity’s needs and potentially uncover ways to adjust or enhance the existing system to offer greater personalisation, dynamic content, and detailed data analytics- which would ultimately feed into creating more effective and streamlined donor communications.

Employment and Skills Gap Challenges

“If we were working with a business or sector we understand, then we can go to young people and say, ‘Right, there’s this opportunity, do you want to go and have an insight day’ and build up their horizon. But I think it’s a new world that we’re shifting to, where many people are hesitant about tech because it’s more unknown. But collaboration can bridge that gap. If you’re able to give charities more knowledge of what technology offers then we can utilise it, but also embed it into our services and support the next generation to work in that sector.”
Kianu Glasgow, Director, D.I.C.E

While exploring how charities can leverage technology, the conversation shifted to how the tech sector itself could contribute to a more inclusive future—for itself and those served by some of the charities represented. This new focus centred on bridging the skills and accessibility gap for young people.

There are a number of barriers that keep many young people from looking at the tech sector as an option for the future

One major barrier identified was the lack of financial accessibility for entry-level opportunities like internships. Often unpaid, these positions become a luxury for young people from well-off backgrounds, further perpetuating the lack of diversity in the tech sector.

Another key point was the importance of exposure. Many young people, especially those in underserved communities, don’t know what employment options exist in the industry. They lack access to role models and professionals who can, figuratively and literally, open the door and invite them in to take a look around.

Working together, the charity and tech sectors can open more doors and create more opportunities for young people to connect with tech professionals, to shed light on the industry and to showcase the possibilities it offers.

In addition to partnering on the physical logistics of improving accessibility, having a technology partner assist in developing grant applications to fund initiatives such as tech training programs, workshops, boot camps, and networking events can only make the appeal more powerful. These programmes would provide young people with the skills and exposure needed to compete in the industry, regardless of their financial background.

“techUK has a dedicated skills, talent and diversity programme. In addition, TechSkills became part of the techUK family in October 2020. It brings together employers and educators to develop the digital talent industry needs. Two examples of how we are seeking to address the digital skills gap.”
Sean Moore, Head of Member Relations, techUK

We mentioned internships not being particularly useful in overcoming a lack of diversity. Giles Cambray pointed out that this lack of diversity was hardly a new state of affairs when he said,

“When I was getting into tech, I was very aware of the lack of diversity. And even now, 20 years on, we still want more people with different backgrounds at the table. We need them; they create richness to what we do. I don’t think we’ve done enough to address this, and it’s of massive concern.”
Giles Cambray, MD, Spork

So, diversity training programs at tech agencies and inclusive hiring practices are also crucial to lowering barriers— not only to entry but retention. Fostering a welcoming environment where people feel they belong ensures that those exploring the sector for the first time believe they can succeed. And technology organisations will have a space where a diverse workforce isn’t just entering the industry but thriving in it.

Charities work hard to support young people with skills development, industry access, applying for work, and navigating the workplace. And when the tech sector steps up and plays its part in helping to bridge that employment and skills gap, we can see a more diverse and vibrant future ahead.

Looking Ahead

Charities vary widely in scope and services, but all face challenges that technology can help mitigate or overcome. The tech sector should proactively partner with charities to develop solutions for automating tasks, improving data management, streamlining workflows, and making fundraising communications more flexible.

These partnerships and the solutions they produce will ensure that the future of the charitable sector remains bright. By embracing digital solutions and partnering with tech experts, charities can overcome challenges, maximise their impact, and continue their vital work in our communities.

Spork is keen to help charities understand their technology options and work with them to maximise their impact and continue their vital work in our communities. Contact us today to discuss how we can help your organisation navigate the digital landscape and achieve your fundraising and social impact goals