Every year, the Charity Digital Skills Report shines a spotlight on how charities across the UK are navigating the fast-changing world of digital technology and artificial intelligence (AI). This year saw record participation (807 responses) which has revealed urgent needs, growing ambitions and challenges for UK charities in a rapidly evolving digital landscape. It is clear the sector has reached a tipping point, with 79% of charities now routinely using AI, marking a significant shift in how organisations deliver services, engage supporters, and manage operations.
Despite squeezed finances and rising service demands, charities are making notable digital strides. 81% of organisations report digital progress, compared to just 60% last year. Large charities continue to lead the way, but small charities (71% of respondents) are also showing remarkable determination, even as barriers such as funding gaps and limited technical expertise persist.
The report highlights a dramatic increase in prioritising digital skills. Building staff and leadership capabilities is now a top priority for 59% of charities, rising to 72% among larger organisations. Training is also the most sought after area for funding, with 44% of charities identifying it as a critical need. Notably, 60% say sector-wide training on AI is essential to their future success.
AI tools are helping organisations save time and streamline administration, with 63% using them for administration and project management and 45% for grant fundraising. However, concerns remain: 56% cite limited skills as the biggest barrier to AI adoption, and trust issues have risen sharply, particularly among charities working with marginalised communities.
Digital inclusion remains a priority, with 52% of charities offering support to beneficiaries, often informally. Charities led by and for disabled, deaf, neurodivergent, and global majority communities are spearheading efforts to ensure accessibility and representation in digital services, but face disproportionate challenges in funding and infrastructure.
The report also explores how AI is transforming grantmaking, with 45% of charities using AI in fundraising applications and over half of funders noting changes in application volume and repetition. Yet, access to digital funding from trusts and foundations has fallen to just 17%, with smaller charities most affected. Sector-wide, training, guidance on responsible AI use, and support to develop AI policies are identified as urgent needs. Without intervention from funders and support organisations, the risk is that only the most resourced charities will benefit, deepening inequalities across communities served.
Calls to action for charities
- CEOs must prioritise upskilling staff and volunteers, as highlighted by 59% of charities making skills development a top priority, up from 43% last year.
- Boards and CEOs need to grow their AI capabilities. A third of boards and a quarter of CEOs are rated as poor at AI skills, and only 36% of small charities have an AI policy or agreed good practice in place.
- CEOs should articulate a clear vision for digital. Nearly half of charities (49%) want their CEO to define the digital ambition and ensure it is embedded in organisational strategy, helping identify skill gaps and where digital can drive the greatest impact.
- Make equality, diversity and inclusion central to digital and AI plans. It is concerning that 22% of charities’ digital services aren’t reaching diverse and marginalised communities, and 27% rarely co-design services with users. Undertake user research and involve marginalised groups in co-designing services.
- Engage your community about digital and AI. Just 6% of charities have researched AI use in their communities, and half are unsure of AI’s impact.
Calls to action for funders
- Invest in skills, training, and leadership development. Digital skills are the number one priority for charities, with 44% identifying funding for training as their greatest need. Investment in boards and leaders is crucial as a third of boards and a quarter of CEOs are rated as poor at AI.
- Provide funding for capacity and core digital costs. Charities face squeezed finances and limited capacity, with only 17% able to include digital costs in funding applications. Funders can help by allowing flexibility to add core costs, supporting sustainability through essential tools and staff time.
- Support sector-wide infrastructure on AI. With 79% of charities using AI and 44% taking no action to manage risks, the sector needs guidance, shared policies, and governance frameworks. Funders should invest in organisations providing support and sector-wide AI tools.
- Take an active interest in how charities use AI. 58% of grantmakers have seen changes in applications due to AI, and a third of charities seek funding for AI development. Funders should engage strategically with the sector to define and fund good AI practices.
- Prioritise digital inclusion initiatives linked to AI. Half of UK charities support communities with digital inclusion, yet many rate themselves as poor at using AI tools. Only 9% help others use AI safely. Funders can ensure AI bridges gaps and prevents widening inequalities in communities.
Zoe Amar, Founder of Zoe Amar Digital and Co-founder of the Charity Digital Skills Report, comments: “The sector is changing rapidly and is poised for transformation; provided it receives the support and investment it needs at this critical moment. Charities have shown incredible resilience and innovation, but urgent support is needed to build skills, develop strategies, and ensure equitable progress. Now is the time for funders and partners to step up and help charities harness digital and AI for greater impact.”
Nissa Ramsey, Co-founder of the Charity Digital Skills Report, adds: “This year’s findings suggest that as AI adoption increases, charities are asking important questions about where and how these tools genuinely add value. While many leaders are optimistic about AI’s potential, staff and trustees are noticeably more cautious, and concerns about trust have more than doubled since last year. At a time when organisations are under significant financial pressure, AI has the potential to save resources and increase capacity. The challenge now is to build confidence in these tools while protecting the critical thinking, judgement and expertise charities rely on.”
Janine Duggan, Head of Digital at, Guide Dogs, comments: “The scale of change can feel daunting, which is exactly why organisations need a holistic view of where they stand today, so they can prioritise with confidence and make real progress rather than isolated fixes. This isn’t about choosing the right technology or investing in infrastructure; it’s about the people, processes, and ways of working that sit behind it. Getting these right is what will unlock more efficient fundraising, stronger volunteer recruitment, and better service delivery across the charity sector.”
Will Ranjan-Churchill, Technology Lead at Esmée Fairbairn Foundation, concludes: “This year’s report really highlights the tensions involved in Charity / Digital, particularly when it comes to AI. As with a lot of tech, it’s those on the margins that are bearing the brunt of these tensions. 62% of global majority-led charities lean on AI for grant writing support, and yet nearly half of those same charities cite a lack of trust in AI as a major concern. The Charity Digital Skills Report is quantifying what a lot of us have known; we really need to level the playing field.
“If, as a sector, we’d introduced any other kind of tool with the metrics the report is showing us – 79% uptake in AI, but 1 in 3 unable to effectively use it – we’d, for sure, have done something about it by now. And so, as funders, it’s clear that we must do more – about the tensions involved in AI and trust, the gaps in digital funding, and the need for more considered training across the board. This report should be a wake up call that there is a real need for more core, infrastructure, and digital funding options for charities.”
Full findings, regional insights, and recommendations are available in the Charity Digital Skills Report 2026. With special thanks to partners of this year’s report including Microsoft; Corndale; Media Trust; Esmée Fairbairn Foundation; Torchbox; Think Social Tech and Manifesto.
