The Digital Imperative for UK Charities and Membership Organisations

Digital transformation in the UK’s third sector is no longer an abstract ambition -

- it’s a necessity. From charities delivering front-line services to professional associations supporting industries and members, organisations are being forced to rethink their digital infrastructure, engagement strategies and operating models.

And yet, despite significant need and opportunity, digital maturity across the sector remains uneven. While many leaders understand the potential, too few have the confidence, capability or strategic clarity to act decisively. This article explores why digital transformation is critical now, how charities and membership bodies compare with SMEs, and where decision-makers must focus investment to remain effective and future-ready.

It’s no longer just about tools. It’s about leadership, capability and intent.

A sector under pressure - and opportunity

The COVID-19 pandemic rapidly accelerated digital adoption across the third sector. According to research from the Charity Digital Skills Report, 81% of charities changed the way they use technology during the pandemic. Organisations moved services online, embraced remote working, and explored new channels for fundraising and outreach.

However, three years later, the pace of transformation has slowed. While digital tools are in place, many organisations lack the coherent strategy to make them work effectively. Only around half of UK charities report having a digital strategy in place. For many, digital change remains reactive, fragmented and under-resourced.

This digital inertia is no longer sustainable. The challenges facing charities and membership bodies are intensifying:

• Donor expectations are shifting online.
  
  
• Members demand seamless, personalised digital services.
  
  
• Funders increasingly require data to evidence impact.
  
  
• Cyber threats and regulatory risks continue to grow.

Different goals, shared obstacles

Charities, membership bodies, and awarding organisations operate in a very different context from commercial SMEs. While SMEs tend to focus on growth, efficiency, and profitability, third-sector organisations must consider mission impact, inclusivity, and governance obligations — often with far less digital capacity.

That said, there are important overlaps. Both sectors face:

• Overwhelming vendor landscapes

• Unclear ROI for tech investment

• Difficulty aligning digital activity with organisational goals

But the third sector also contends with additional barriers:

• Ethical concerns about technology use

• Resource constraints driven by fundraising volatility

• Board-level uncertainty or lack of digital fluency

In SMEs, digital transformation is often seen as a route to competitive advantage. In charities and associations, it’s about sustainability, trust, and delivering impact more effectively — without losing the human touch.

What needs to change?

There are five digital imperatives decision-makers in the third sector can’t afford to ignore:

1. Digital Strategy as Core Business Strategy

Digital must move beyond the IT team. Whether serving members or beneficiaries, digital delivery now defines user experience. A clear strategy tied to organisational objectives is essential to prioritise investment, measure value, and avoid wasteful initiatives.

2. Modern CRM and Data Capabilities

For many, CRM systems are either under-used or non-existent. Around 30% of small charities still operate without a CRM, and a third of large organisations say their CRM doesn’t meet their needs. The result? Fragmented relationships, lost insight, and wasted effort.

3. Accessible, Inclusive Digital Services

With the European Accessibility Act coming into force in June 2025, organisations offering digital services in the EU must meet new minimum standards. But even beyond legal compliance, digital exclusion remains a critical concern. One third of disabled UK adults feel most websites fail to cater to them - a gap that also translates to lost donations and disengaged members.

4. Cybersecurity and Data Governance

Charities handle sensitive data, from beneficiary case files to personal donor records, and are increasingly targeted by cybercriminals. Yet only 22% of UK charities rate their cybersecurity as “excellent”, and just 34% carry cyber insurance. Robust governance, board-level oversight, and proactive training are no longer optional.

5. Leadership and Capability Building

Digital transformation requires leadership, not just technology. Many boards lack confidence in their digital understanding - 62% of charities say their trustees’ digital skills are “low” or need improvement. Investing in training, fractional strategic support, or embedding digital roles is crucial to long-term success.

Beyond survival: a call to action

The digital future of the third sector will not be defined by platforms or tools alone. It will be shaped by leadership decisions — about where to invest, how to adapt, and who to serve.

At Kingsbury Consulting, we work with charities, membership organisations and awarding bodies to cut through complexity and build realistic, value-focused digital strategies. Our structured CORE Framework helps organisations map current capability, prioritise investment and align digital change with strategic outcomes.

For leaders feeling the pressure of digital uncertainty or concerned they may be falling behind, the time to act is now.