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October 2023 - Voluntary

27% of charities say cost of living crisis is 'significant challenge' to how they are using digital: An annual survey of charities to gauge attitudes and behaviours when it comes to digital skills has found that more than a quarter feel that the cost of living crisis has posed a 'significant challenge' to how they are using digital.

One of the key focus areas in The Charity Digital Skills Report 2023 authored by Zoe Amar Digital, Think Social Tech and supported by Cataylst, was how the cost of living crisis has impacted charities and the way they use digital, following positive changes in embracing technology to deliver online services and fundraise online during the pandemic. 

The research polled 505 charities of varying size across the UK between March and May 2023.

The findings revealed that 3 in 10 charities are spending less money on digital tools due to the cost of living crisis, with 17% saying they are also spending less on up-skilling staff and volunteers. It also found that one in 10 are having to abandon internal digital projects, while 39% are looking at how they can use digital to work more efficiently. 

Recruitment has also been affected by the cost of living, found the survey, with 9% of charities reporting that they have had to freeze recruitment or have fewer digital roles. 

Charities were asked to select which stage of digital development was the most true for their organisation from four statements ranging from 'Curious' (some basics in place but could do more), 'Starting Out' (developing their use of digital but do not yet have a strategy), 'Advancing' (investing in technology and developing skills and is part of their strategy), and 'Advanced' (digital is integral to organisational strategy and embedded in all they do). The research found that charities that are only at an early stage with digital are being impacted to a higher degree by the cost of living crisis than those at advanced or advancing stages.

Digital capacity has remained the same for around two-thirds of 'advanced' charities (66%) compared with almost half of advancing charities (48%), two-fifths of those starting out (40%) and 38% of those who are curious.

The report said it is 'surprising' that more charities are not utilising the potential of digital to save them time and capital. Just 18% of the charities polled said they are delivering more of their work using digital tools, while 13% reported putting into place more remote working in order to reduce office costs. In addition to this, 12% said they are developing new digital services to help with the cost of living crsis.

There has also been a fall in the number of respondents who said they have a strategic approach to digital, to 48%, from 56% in the 2022 survey. However, more than three-quarters said that digital is more of a priority for their organisations (78%). 

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