The Rising Demand for Data Literacy and AI in Charities
After the massive digital transformation brought on by the pandemic, the landscape of charitable organizations has evolved dramatically. In June 2024, the Charity Insights Canada Project (CICP) took a close look at the current state and future needs of softwares and digital skills within the sector. Despite a strong foundation in basic digital skills, our survey reveals that the charitable sector shows significant weaknesses in specialized competencies such as data management. There is also a strong emerging demand for data literacy and AI capabilities in the near future.
Strong Fundamentals, Key Skill Gaps
Our survey reveals that most charities have solid digital foundations, with nearly all respondents rating their organization’s proficiency as either excellent (64%) or fair (33%) in using essential tools like email and video-calling. Additionally, charities reported having strong remote work capabilities, with 45% rating their skills as excellent and 41% as fair. However, gaps emerged in areas critical to research and evaluation. A third of respondents reported low proficiency in user research and using digital tools for monitoring and evaluation. Data skills were also a noted challenge; about a quarter of organizations rated their data collection, management, and analysis skills as poor (25%), with 23% indicating similar difficulties in using data to inform strategy and decision-making.
Leveraging Diverse Digital Platforms for Efficiency
Charities are actively adopting a variety of technologies to boost their operational efficiency and outreach. While basic tools like email and document management software (e.g., Microsoft Office, Google Workspace) are essential for day-to-day operations, our survey reveals substantial adoption of more sophisticated platforms, including tools like Keela, Trello, Slack, and QuickBooks, for project management, CRM, and specific sector needs. Below is a summary of the primary tools charities use, based on 3,061 references coded from 745 open-text responses:
| Software Category | No. of References | Examples |
| Office Productivity Tools | 773 | Microsoft Office, Google Workspace |
| Fundraising and Donor Management | 444 | CanadaHelps, Salesforce, DonorPerfect, Keela, Zeffy, Raiser’s Edge |
| Communication | 432 | Zoom, Microsoft Teams, Slack, WhatsApp |
| Finance and Payment Software | 239 | QuickBooks, Sage, Square, PayPal |
| Project or Task Management | 124 | Asana, Trello, Miro, Smartsheet |
| Data Management and Security | 104 | SurveyMonkey, Google Forms, JotForm, Microsoft Forms |
| Staff and Volunteer Management | 78 | Better Impact, ADP, Agendrix, Volunteer Impact |
| Grant Management | 17 | Grant Advance, Grant Connect, Foundation Search, Pocketed |
| Automation and System Integration | 9 | Zapier, Omatic |
| Social Media | 258 | Facebook, Instagram, Twitter/X, YouTube; Hootsuite, Buffer |
| Marketing and Engagement | 130 | Mailchimp, Constant Contact, CyberImpact, HubSpot |
| Graphic and Digital Editing | 129 | Canva, Adobe Suite, Photoshop, InDesign |
| Website Management | 93 | WordPress, Wix, Squarespace, GoDaddy |
| Specialized Software | 207 | e.g., Planning Center, Theater Manager, Hestia, Link2Feed |
A Growing Need for Data Management and AI Integration
From 679 open-text responses, the top emerging needs identified for the next 3-5 years were Fundraising and CRM Management, Digital Marketing, Data Literacy and Management, and AI Integration. While fundraising and CRM needs were anticipated, a clear demand is emerging for enhanced data literacy and AI capabilities to streamline donor management and automate operational tasks. Additionally, there is growing interest in integrated digital platforms, with charities expressing a need for centralized solutions that can handle everything from membership and financial tracking to communication and outreach.
“Understanding AI, cybersecurity and business continuity, scaling data literacy across the organization”
“Automating tasks – increased automation of receipting process, website maintenance, inventory management, etc.; Data analysis – using collected information to predict future needs and better understand clients; Social media management – growing online audience, reaching non-members, promoting events and initiatives, etc.”
“An integrated cloud-based digital platform that allows us to manage membership, grants, donations, financial processing/tracking and communications all in one platform. It doesn’t exist – and we sure wish it did!!”
Conclusion
Our survey shows that while digitalization is transforming the charitable sector, smaller charities often find basic tools sufficient for their needs. However, as digital fundraising and data management become increasingly essential, charities will require stronger digital competencies and support from government, donors, and the wider community to drive change from the grassroots up. Meeting these needs will pave the way for a more resilient and data-informed sector.
Want to receive our blog posts directly to your email? Sign-up for our newsletter at the following link, and follow us on social-media for regular project updates:
- Newsletter sign up: https://confirmsubscription.com/h/t/3D0A2E268835E2F4
- LinkedIn: https://www.linkedin.com/company/cicp-pcpob/
- Socials: @CICP_PCPOB
The Rising Demand for Data Literacy and AI in Charities
After the massive digital transformation brought on by the pandemic, the landscape of charitable organizations has evolved dramatically. In June…
Beyond Survival: The Impact of Unrestricted Funding on Charities’ Sustainability
As the demand for charitable services increases, many charities face a relentless struggle to secure funding for their essential operations.…
Charities “Scrambling to Sustain Growth”
The Canadian charitable sector faces growing challenges as the economy, interest rates, and inflation remain under close watch. The cost…