As the technology partner for many New Zealand not-for-profits, we always look forward to this report for the valuable insights it provides, helping us better understand and support the sector.
Key Stats and Spending Trends
The report gathered data from 765 not-for-profits across New Zealand and Australia, with a 25/75% split between the two countries. A particularly notable finding was the difference in technology spending:
Unfortunately, this is the only geographic breakdown included in the report. A deeper dive into New Zealand-specific trends would have been valuable - hopefully next year.
The Priorities and Challenges
The report identified the key technology priorities for mid-sized and large not-for-profits as:
At the same time, these organisations are grappling with significant challenges, including tightening government budgets, the cost-of-living crisis, and a reduction in donations and volunteer time. According to the report:
These pressures are further intensified by an increasing demand for services, as more individuals and communities turn to not-for-profits for support. This creates a challenging environment where organisations are expected to do more with fewer resources, making technology resilience and strategic planning more critical than ever.
The Data Challenge: Turning Insights into Impact
Only one in four organisations agreed that the quality of their data is good enough to readily support their reporting and analytical needs. This remains a significant challenge for not-for-profits striving to measure their impact and effectiveness.
As a New Zealand IT Managed Service Provider, we frequently hear about the struggles with CRM and CMS tools that fail to meet the needs of not-for-profits, restricting their ability to track outcomes effectively and evolve their services.
We’d encourage you to:
Despite indications from the 2023 report that improving IT training, staff skills and development was a priority, in 2024 it remains the lowest-reported spending category for both Australian and New Zealand-based NFPs, accounting for just 1% of their operational expenditure.
Cybersecurity
As cyber threats become increasingly complex and common, not-for-profits must prioritise cybersecurity investments in protection, policies, and practices. Despite the escalating risks, the report revealed that only 1 in 5 organisations have a plan to improve their cyber protection. This gap leaves many organisations vulnerable in a landscape where it’s not a question of if an incident will occur, but when.
Cybersecurity is not just the responsibility of large charities. Smaller organisations often handle the most sensitive data—such as personal details of vulnerable communities—while having the fewest resources to protect it. Boards play a critical role in responding to these risks by setting the framework, ensuring the organisation is actively managing its cybersecurity posture.
Cybersecurity is not a set-and-forget exercise. It requires a whole-picture approach, including regular compliance reviews, staff and volunteer training, and continuous improvement to stay ahead of evolving threats. By understanding and addressing these risks proactively, you can protect your reputation and maintain trust with the community your support.
We’d encourage you to consider: if your organisation were breached, what would the headline be? Would it reveal your commitment to best practices and proactive measures, or expose a lack of investment and preparedness?
The Rapid Rise of AI in the Not-for-Profit Sector
One of the standout findings from this year’s report is the rapid adoption of generative and conversational AI tools, with 76% of organisations now using these technologies—a 52% increase compared to the previous year.
This surge is dominated by ChatGPT, which has become the tool of choice for many not-for-profits. Microsoft Copilot follows in second place, with other technology partners increasingly integrating AI into their platforms and introducing new tools to the market.
While the sector is moving ahead at pace, we would encourage you to start your AI journey thoughtfully. Begin by experimenting with tools to better understand their capabilities and limitations. AI can do some tasks exceptionally well—sometimes even magically—but it’s important to think creatively about how these technologies can solve real problems, such as saving time on writing reports or improving daily operations.
As exciting as this is, AI will also present challenges. It will shape and change communities, impact staff and volunteers, and alter the way services are delivered. It’s critical to consider how AI will affect your community.
Concerning the report revealed a significant gap in governance: only 12% of not-for-profits have a policy, guideline, or framework in place to oversee their use of AI tools. This presents risks, as using AI without proper oversight could undo the good these tools enable.
To make the most of AI safely and responsibly, organisations must have clear policies, training, and processes in place. Consider how to stay safe and stay curious, ensuring you don’t inadvertently put sensitive data into the wrong system or misuse these tools. Now is the time to start having those conversations about its safe and responsible use.
Conclusion
The Digital Technology in the Not-for-Profit Sector Report offers a valuable snapshot of where the sector stands today. While the adoption of new technologies like AI is accelerating and priorities like cybersecurity and data management are gaining recognition, there is still work to do.
As a technology partner for New Zealand not-for-profits, we see the incredible potential for technology to drive meaningful change. Reflect on where your organisation stands: Are you leveraging your technology to its fullest potential? Are your policies and processes robust enough to support your mission safely and effectively? And most importantly, are you equipped to navigate the future with confidence?
If you’re interested in reading the full report, you can download it here.
