Overcoming the top 5 IT challenges in the charity sector

charity IT challenges

5 IT challenges facing the charity sector you shouldn’t ignore

As we progress further into 2025, charities continue to face significant IT challenges that impact their ability to deliver vital services efficiently, often supporting the most vulnerable in our society. In light of recent high-profile ransomware attacks on major UK retailers, charities must remain vigilant to similar threats by ensuring robust IT security measures are in place.

The escalating sophistication of cyber threats, particularly AI-powered attacks, poses unprecedented challenges for all businesses. However, with limited resources and often outdated systems, charities are especially vulnerable to data breaches, service disruptions, and reputational damage.

For the past 20 years, we’ve had the privilege of partnering with some fantastic charities, gaining a deep understanding of the crucial impact of their work. To help support their mission, we’ve highlighted five key IT challenges currently affecting the sector and how to overcome them.

1. Limited budgets and financial sustainability

With 60% of charities citing limited budgets as their biggest barrier to digital progress, many are forced to operate on outdated systems. The cost-of-living crisis has only worsened this issue, making technology upgrades harder to achieve.

In this context, working with trusted IT providers is crucial. Providers who understand the unique challenges charities face can help guide priorities for IT and security investments. A reliable IT partner can recommend cost-effective, secure solutions, ensuring limited resources are spent wisely on essential upgrades. This partnership helps charities avoid unnecessary spending and ensures their digital infrastructure is both secure and sustainable in the long run.

2. Cyber security and data protection

As charities continue to embrace digital tools and online platforms to deliver services and engage with donors, they are increasingly becoming attractive targets for cybercriminals. Hackers are targeting sensitive data, such as donor information, financial records and personal details of beneficiaries, putting the entire organization at risk. Without proper safeguards in place, charities may inadvertently expose themselves to phishing attacks, data breaches, and ransomware.

In addition to the immediate financial and reputational damage a cyberattack can cause, charities also face legal and regulatory consequences if they fail to protect sensitive data. With data protection laws like the GDPR (General Data Protection Regulation) in effect, the penalties for non-compliance can be severe, further compounding the challenges faced by charities.

One important step charities can take to improve their cyber security posture is by obtaining Cyber Essentials Certification. This government-backed scheme helps organisations implement basic security controls to safeguard against common cyber threats. By obtaining Cyber Essentials, charities demonstrate their commitment to protecting data and reassuring donors, service users and stakeholders that their information is safe.

Tailored Cyber Essentials certification solutions

We’ve been supplying tailored Cyber Essentials solutions that are hassle-free and cost-effective since the NCSC launched the scheme in 2014. 

3. Digital skills gap

Many charities are struggling with a significant digital skills gap, both internally and among their service users. According to the Charity Digital Skills Report 2024, approximately 56% of charities are not effectively engaging with emerging tech trends, and 31% are poor at or not engaging with collecting, managing, and using data. This gap hinders the adoption of new technologies and limits the effectiveness of digital initiatives.

This digital skills gap creates significant barriers to adopting new technologies, whether that’s in automating processes, enhancing communication with donors, or reaching wider audiences through digital marketing. It also hampers the effective use of data analytics to drive informed decision-making and improve service delivery.

4. Outdated IT infrastructure

A significant number of charities are still relying on legacy systems that are slow, inefficient, and vulnerable to cyber threats. While 45% of charities rate their IT provision as good or excellent, many continue to face challenges with outdated hardware, software, and customer relationship management (CRM) systems. To ensure charities are operating on secure, up-to-date infrastructures, its vital to prioritise regular system upgrades and security patches. It is also crucial to explore funding opportunities specifically aimed at supporting IT improvements for non-profit organisations. Various grants and programmes are available to modernise IT systems, making them more secure and efficient. By taking advantage of these resources, charities can better protect their data, enhance their operations, and ultimately provide more effective services to their communities.

5. AI adoption and digital inclusion

As technology continues to advance, the adoption of artificial intelligence (AI) presents both opportunities and challenges for charities. AI has the potential to transform service delivery, from automating routine tasks to providing more personalised support for beneficiaries. However, many charities are still hesitant to fully embrace AI due to concerns around cost, complexity and a lack of expertise. It can also create barriers for beneficiaries who lack access to the necessary technology or digital skills.

For those willing to invest, AI can improve efficiency, enhance user experiences and enable data-driven decision-making. Charities must carefully consider how to integrate AI in a way that aligns with their mission and available resources, while also ensuring ethical use and protection of personal data. They must also be mindful of the digital divide and ensure that their use of AI doesn’t inadvertently exclude vulnerable groups.

By offering training, providing accessible platforms and making thoughtful choices about AI applications, charities can help ensure that AI benefits all.

Next steps: tackling the challenges

Whilst no security measure can guarantee 100% protection, there are steps you can take to significantly reduce the risk to your business:

By investing in expert IT and cyber security support, charities can safeguard their mission, protect sensitive data and maintain the trust of their donors and beneficiaries.

In an era where cyber resilience is paramount, partnering with IT specialists who understand the unique challenges of the non-profit sector is not just advisable—it’s crucial for survival and success in today’s digital world.

An IT partner to empower your mission

As we celebrate our 20th anniversary, we are proud to have been providing expert IT and cyber security solutions to charities and not-for-profit organisations across the South East and beyond. We understand the unique challenges the charity sector faces today, and how these obstacles can impact the crucial work you do.

At Ingenio, we’re not just a service provider—we’re an extension of your team. We empower your mission, enhance productivity and proactively support your success. With our expertise in IT and cyber security, you can focus on what matters most: making a difference in the communities you serve.

Have concerns? We can help. Get in touch today to discover how we can partner with you to achieve lasting success.