Tech trends that NFPs need to know about in 2025

Those priorities come from the latest Infoxchange Digital Technology in the Not-for-profit Sector report, which has been tracking NFP sector tech issues for nearly a decade.

The sector-developed NFP Sector Blueprint, being considered by the federal government, also highlights the urgent need to build on the sector’s digital and data literacy.

Overcoming tech barriers will bring rewards

According to Infoxchange, the biggest barriers to achieving those goals are budgets, rising costs, access to affordable resources, staff capability, the need to improve the user experience, and access to apps and websites.

Infoxchange chief executive David Spriggs said there are powerful benefits for organisations able to harness technology.

“We know that when NFPs prioritise their tech capabilities across data, AI, cloud, automation and other innovative technologies, they can increase their ability to improve impact and make more data-driven, evidence-based decisions.”

Yet, as his organisation’s latest study showed, “the majority of organisations do not have the required infrastructure, systems and software to effectively support their work, protect sensitive information, or understand the impact of their services and outcomes.”

He said his organisation aimed to help “resource-strained” NFPs to overcome barriers using a suite of advice, resources and products, such as its Digital Transformation Hub, Cyber Hub and Digital Learning Centre.

Infoxchange will host a national conference on NFP tech in Melbourne on May 7–9.

Constant vigilance needed on cyber threat

Not-for-profits remain prime targets for cybercriminals, with weak security protocols and policies leaving them vulnerable.

Authorities warn that cyberattacks area a matter of when, not if, with advocates such as the Community Council for Australia (CCA) seeking additional resources and support for the sector.

One of the biggest recent breaches was the July 2024 attack on Geelong-based Meli Community, in which an estimated 215 GB of data was taken, and probably published on the dark web. This followed the massive 2023 Pareto Phone hack involving more than 70 charities and leading to the details of 50,000 donors being leaked.

Last year, the nation’s privacy watchdog, the Office of the Australian Information Commissioner (OAIC), quietly dropped a one-year investigation into the Pareto Phone breach, after deciding the remedies it might obtain were not worth the effort.

Soon afterward it issued updated guidance targeting not-for-profits, with a focus on taking care when using third-party providers for fundraising or other functions.

The guidance covers:

• information security
• the retention and destruction of information
• issues to consider when using third parties.

“We … know that the sector wants to do the right thing when it comes to privacy. Our guidelines are intended to help charities and other not-for-profit organisations do just that,” Privacy Commissioner Carly Kind said.

“Retaining more personal information than you need creates privacy risks for your organisation, staff and supporters.”

“If you are using a third-party provider, whether that is for fundraising, or a software vendor or other provider, make sure their privacy practices meet the expectations of both your organisation and the wider community.”

Infoxchange had previously warned that many NFPs were missing basic cybersecurity precautions, such as training for staff or policies to improve their security “posture”. Insurance broker Aon’s NFP lead Aaron Turner said that the organisations without those measures could find they were “uninsurable”.

Tech thinker looks over the horizon

One big thinker whom not-for-profit leaders should watch is Dr Lucy Bernholz, a US-based scholar examining the future of digital civil society.

Based at Stanford University’s Center on Philanthropy and Civil Society (PACS), Bernholz has published an annual industry forecast, Blueprint, since 2010.

The study examines how trends in technology, policy and social movements are affecting not-for-profits.

However, in a sign of how tricky these forecasts have become, Bernholz has ditched her usual annual predictions, simply stating: “It seems likely that 2025 will bring massive, structural changes to nature, governments, borders, and economies.”

Despite the uncertainty, the 48-page study identifies several key issues relevant to Australian NFPs, such as:

• AI and fundraising, including the rise of “autonomous fundraisers”, AI-driven chat bots programmed to craft personal pitches to encourage donations
• the role of encryption in messaging and trust
• the unintended consequences of impact measurement on NFPs
• the dangers of AI fakes in eroding trust in all forms of content, an erosion that Bernholz dubs “deep doubt”.

Bernholz’s analysis ranges over political trends, data privacy, technology ownership, laws and regulation, ethics and case studies, and she offers possible solutions for organisations seeking to protect vulnerable citizens in the digital age.

Readers can track Bernholz’s thoughts here.