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Five Reasons Why Charities Should Be Embracing Digital Technology
Digital technology, including mobile payments and e-commerce tech, has been an innovation taking the business world by storm over recent years, but charities have been largely left behind by this.
Organisations like the Centre for Acceleration of Social Technology (CAST) have been set up with the task of bringing the charity sector up-to-speed with these new technologies, and it’s great to see that their work is beginning to pay off.
At the start of August, CAST were awarded £1.12m worth of funding from the Big Lottery Fund, with the money being targeted at increasing the use of digital technology among charities in the UK.
But what’s taken the charity sector so long to catch up to business?
Here are five reasons why charities are now beginning to embrace digital technology.
- Digital is Here to Stay:
Since digital technologies were first introduced to the market, they have continued to get more efficient and have adapted to their environments.
With innovation taking place within the fintech arena too, the future of digital technology is being written now.
- Lower Costs
As technology has become more efficient it has become more affordable for charities.
Rather than paying thousands of pounds for an expert to create a presence on social media platforms like Facebook and Twitter, smaller charities now use this as part of their marketing budget, leaving other budgets available for longer-term projects including online payment platforms.
- Fear of Losing Out to Competitors:
The charity sector can be fiercely competitive. There are many raising money for similar projects, so the competition for funding is tough. Charities that fail to innovate and stay ahead of the curve face losing their funding to competitors and being left behind.
- Support from outside Organisations:
Like businesses, charities need support from time-to-time, and groups like the Small Charities Coalition and CAST have been created in order to give help and advice to the industry.
Just as small businesses have drop-in surgeries and advice sessions, a similar environment is becoming available for charities, so they are more able to look to new areas of their business, such as technology.
- The Success of Businesses using Digital Technology:
When digital technology was first introduced in businesses there were obviously sceptics, but that scepticism is less apparent in the charity sector now because of the successes that businesses have had with it.
Charities are the next big innovation for the financial technology industry, and the new funding recently won by CAST shows a move in the sector towards innovation, but there needs to be a significant shift in opinion if the industry is to keep up with current trends.
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