The Charity Digital Skills Report 2025 is out. Now in its ninth year, the report remains a helpful pulse check on how UK charities are balancing financial pressures with the opportunities of technological acceleration, and this year’s report paints a surprising picture of digital transformation in the sector.
Key findings
Based on the insights of 672 charities, this year’s findings highlight both progress and persistent challenges, with one surprising contradiction: while AI adoption is rising rapidly, strategic planning is going in the opposite direction.
This year, 76% of charities reported using AI tools, a significant increase from 2024 when only 61% of charities did. Whether it’s automating admin, enhancing service delivery or generating content, charities are keen to explore what AI can offer. And that enthusiasm is echoed in future plans. Nearly half of surveyed charities are currently developing an AI policy, and 3 out of 4 charities see AI as relevant to their work. Yet, despite this surge in tech uptake, only 44% of charities have a digital strategy, a notable decline from 50% the year before. In short, while more charities are doing digital, fewer are planning for it at a strategic level.
The report suggests that the cost-of-living crisis is not only draining financial resources but also limiting strategic headspace. With 69% of charities citing strained budgets as the biggest barrier to digital progress, it’s clear that many are reacting tactically rather than thinking long-term. This risks a growing reliance on digital tools without the policies, governance or skills to manage them effectively.
The implications of this are significant. Leadership and governance are lagging with many charities rating their boards and CEOs as having poor AI understanding. Without confident, digitally literate leadership, the sector risks misusing technology or missing its full potential. The report also highlights a widening digital divide between larger, well-resourced charities and smaller ones. With 68% of small charities still in the early stages of digital adoption, the AI boom could exacerbate existing inequalities unless targeted support is introduced.
In summary, the Charity Digital Skills Report 2025 shows a sector at a crossroads. While there is progress, charities need to invest in building strategic and governance foundations, and smaller charities require coordinated funding and leadership training to deliver sustainable, equitable change.
Access the full report here, which is authored by Zoe Amar, founder of Zoe Amar Digital, and Nissa Ramsay, founder of Think Social Tech.
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