Report Finds Australian Not-for-Profit Sector Struggling with Outdated Technology 

UNDER EMBARGO UNTIL THURSDAY, 28th NOVEMBER, 2PM AEDT - Infoxchange, the not-for-profit social enterprise delivering technology solutions to more than 38,000 community organisations across Australia and New Zealand, has released the 2024 Digital Technology in the Not-for-Profit Sector Report.  

This year's report finds that despite significant progress in the adoption of emerging technology, including artificial intelligence (AI), the majority of respondents consider their technology environment to be basic or challenged, with significant shortfalls in cyber security capability, use of data for measuring impact and the digital skills of staff and volunteers. 

In its ninth year, the report surveyed 765 NFP organisations providing much needed support services in the community including homelessness, family violence, mental health and wellbeing concerns, community development, disability services, disaster relief and First Nations led organisations. 
 
Assistant Minister for Competition, Charities, Treasury and Employment, Hon Dr Andrew Leigh MP spoke at the launch of the report, "The focus of this year's report is on cyber security, AI and the better use of data. The work that the NFP sector does in creating a better environment, a fairer society and strong community is absolutely vital. We recognise that much of this work is increasingly being done online and the better use of technology - such as AI - can mobilise services for good. We must ensure Australian NFPs are able to best deploy technology in the service of the community."  
 

Key findings of the report include:  

• Only 1 in 3 organisations have effective processes to manage information security-related risks;  
• Just 1 in 5 organisations regularly conduct cyber security awareness training for staff and volunteers on security-related threats and risks;  
• Data and reporting for evidence-based decision making has become the #1 priority for NFPs in the year ahead, with only 1 in 4 organisations agreeing the quality of their data is good and readily supports their reporting requirements;  
• 77% of organisations don't have systems that allow them to effectively understand the impact of their services and outcomes;  
• AI adoption has increased significantly, with 76% of organisations using generative or conversational AI tools compared to only 24% of organisations last year; 
• Budget and funding remain the biggest challenge to organisations in building their digital capability.  

David Spriggs, CEO of Infoxchange shared, "Not-for-profits play a vital role in responding to and supporting vulnerable communities but are increasingly overwhelmed in trying to keep pace with digital technology. Cyber security threats are rising by the day, and the sector is not adequately prepared. The majority of not-for-profits are also struggling with their data and information systems to effectively measure their impact and provide insights to improve service delivery."  

"Organisations that prioritise their digital technology capabilities can make stronger data-driven and evidence-based decisions. At a time where inequality is deepening, we need greater investment in data and technology capabilities so we can help staff on the front line and enable organisations to effectively respond."  
 
Assistant Minister for Competition, Charities, Treasury and Employment, Hon Dr Andrew Leigh MP continued, "The report highlights many not-for-profits are not using multi-factor authentication - many organisations feel themselves exposed to cyber risks. The Australian government understands the importance of addressing cyber risk and the fact we've already seen serious cyber attacks in the NFP sector. Like businesses, NFP organisations need to be prepared for cyber attacks, hardening their systems and reducing unnecessary data being kept in forward-facing systems." 
 

The under-resourced sector struggling as the 'lifeblood of Australia's vital services'  

The report comes following the recent release of more than 100 submissions made by Australia's largest not-for-profits, research bodies and the charity regulator for the Not-for-Profit Development Blueprint to the government, finding government programs that support digital capabilities were available for the small business sector, but not accessible for NFPs.  

The Paying What It Takes Report found that NFPs struggle to secure funding for 'indirect costs' - such as IT, measurement and evaluation, which reduces ability to generate substantial impact.  

There are more than 600,000 NFPs in Australia, according to the Australian Charities and Not-for-Profits Commission, 2023.  The sector employs more than 1.4 million Australians, or 10.5% of the paid workforce - more than mining, tourism or agriculture. The sector contributes a total revenue of more than $190 billion to Australian GDP. 

See the full report here. 

Infoxchange has created a resource page for organisations seeking to access more information on how they can leverage AI, data, and cyber security. Additionally, organisations can visit Infoxchange's Digital Transformation Hub for support.  

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About Infoxchange:  

Infoxchange is a not-for-profit social enterprise that has been delivering technology for social justice for 35 years. With over 140 staff across Australia and New Zealand, we tackle the biggest social challenges through the smart and creative use of technology. 

We work with community, government and corporate partners to solve issues around homelessness, family violence, mental health and disability, as well as supporting First Nations communities, women, youth and families. Our products and services are used by over 38,000 government and community services. We provide the right tools to improve efficiency and deliver greater impact - from nation-wide service coordination systems to IT advice for individual organisations.