A sector under pressure - why our tech choices matter more than ever

By Matt Walton, CEO Dog & Bone

Every time the annual Infoxchange report lands, I grab a coffee, settle in, and within a few pages I’m already nodding - sometimes in agreement, and sometimes in frustration because I can see the sector grappling with the exact challenges we’ve been helping organisations navigate for years.

Credit to Infoxchange, who continue to do an outstanding job producing the ‘Digital Technology in the NFP Sector’ report and supporting the sector with insights that most organisations simply wouldn’t have the resources to uncover on their own.

It’s a huge effort each year, and the whole sector benefits from it.

This year’s report was no different. And a few things stood out sharply.

We’ve come a long way - but not everyone has benefited yet.

With 2025 marking a decade of these reports, you really get a sense of how far the sector has moved - especially in the shift to cloud. Many NFPs that embraced cloud early are now enjoying flexibility, better collaboration, and less time maintaining outdated systems.

We’ve spent much of the last 10 years helping organisations make that move. Looking back, the ones who invested early are more resilient today and better placed to adopt data-driven tools and modern service delivery systems.

But the report also shows a divide: cloud use has grown with around 87% of organisations now using cloud collaboration tools, compared to only a small fraction a decade ago. But the majority still describe their tech as basic or ‘challenged.’ Legacy systems and fragmented tools are still dragging many organisations down.

For those who haven’t fully made the transition, this is becoming a real risk - for security, for efficiency, for data quality, and for the ability to keep up with growing community needs.

Data is now the beating heart of decision-making.

What really caught my attention is that data and reporting have become the #1 priority for NFPs. That’s not a trend - that’s a shift.

Demand for services is climbing, compliance expectations are increasing, and organisations are being asked to demonstrate impact with clearer evidence. Yet, according to the report, only 1 in 4 say they have good quality data, and 77% don’t have systems that allow them to understand the impact of their services.

That’s a huge problem - and a huge opportunity.

Data isn't just something you “collect” anymore - it’s something you use to steer decisions, advocate for funding, protect staff time, and show outcomes. We’ve seen first-hand that when NFPs choose and implement the right systems, everything becomes clearer and easier. Without strong data foundations, even the best intentions become guesswork.

AI is promising - but only if it’s managed responsibly.

It’s not surprising to see AI usage jump so significantly. The report shows 76% of NFPs are now using generative AI tools, up from around a quarter last year. That’s enormous growth. But enthusiasm without guardrails is risky.

A lot of organisations are experimenting with AI before they’ve built policies, trained staff, or established governance frameworks, and the report shows only 14% actually have an AI policy in place. When you’re dealing with sensitive client data, the stakes are high.

Cybersecurity needs to climb back up the priority list.

This was the part of the report that genuinely worried me: cybersecurity prioritisation has decreased.

That’s happening at a time when cyber threats against the sector are increasing, and when several NFPs have experienced breaches and data leaks that damaged both operations and reputation.

Only 1 in 3 NFPs say they have effective processes for managing information security.

For organisations that store personal, sensitive or health-related client information, this is not something we can afford to downplay. Cyber isn’t a “tech problem” - it’s a trust problem. And trust is one of the most important assets any NFP has.

Budgets are tight - but that doesn’t mean you can’t progress.

The report makes it clear that funding remains one of the biggest barriers to improving technology. We often see that organisations are spending money - it’s just tied up in the wrong places.

Old systems, duplicated tools, unnecessary telco or connectivity costs, maintaining outdated infrastructure - these eat into budgets that could be directed towards data improvements, cyber uplift, staff training or modernised systems.

It’s not always about finding more money. There may be opportunities to free up money you already have, and making choices that genuinely improve capability and reduce risk.

Small shifts can create the space needed for bigger improvements.

So where does the sector go from here?

For me, the message from this year’s report is clear:

The sector is trying, adapting, and genuinely wanting to modernise - but progress is uneven. The next few years will decide who keeps up and who gets left behind.

Here’s what I think matters most right now:

• Cloud can’t be optional.

• Data quality and insight must become core capabilities.

• AI needs policies and guardrails.

• Cybersecurity must return to the agenda.

• And tight budgets need smarter spending.

None of these things need huge leaps - just intentional steps, with the right priorities in the right order. And every organisation, no matter how resource-constrained, can do that.

Thanks again to Infoxchange for shining a light on where those steps matter most. You can find the report here.