Thanks to the rapid rise of philanthropy technology (PhilTech), the giving sector is making greater charitable impact every day. From digital grantmaking tools to real-time collaboration platforms to AI-assisted research of service opportunities, PhilTech is helping donors support their causes more effectively, nonprofits operate and fundraise more efficiently, and professional wealth advisors enhance their clients’ financial and estate planning through strategic giving.
For a closer look at PhilTech’s impact on the sector, check out these key findings by the Technology Association of Grantmakers (TAG). More than 350 foundations participated, resulting in helpful insights about:
- Artificial Intelligence (AI) tools, including their adoption, governance and how they’re perceived
- Shifts in workplace models, including hybrid, remote and in-person settings
- Technology budgeting and staffing
- Support of nonprofits
- Support of Diversity, Equity, and Inclusion (DEI) efforts
- Technology tools, practices, and management approaches
- Foundations employing strategies to strengthen their cybersecurity
Here are some of the key findings from TAG’s 2024 survey of grantmaking organizations.
Artificial Intelligence (AI)
- 81% of foundations use AI to some degree but only 30% have a policy in place for responsible use of AI.
- Blockades to AI adoption include privacy/security concerns (55%), lack of skills (43%), and uncertainty about how AI can be used within philanthropy (40%).
These findings indicate a need for the philanthropic sector to invest in AI education, training and governance – especially as the technology continues to evolve and be part of our everyday lives. Collaboration and knowledge sharing among donors, nonprofits and advisors will go a long way in helping the sector adopt AI safely, responsibly and impactfully.
Support of Nonprofits
During the pandemic, foundations supported nonprofits by offering technology support and streamlining grant processes and reporting. Of the TAG survey respondents, 67% continue to streamline applications, 56% still streamline reporting – but only 20% (down from 23% in 2022) are providing technology support and tools.
Post pandemic, investment in technology infrastructure appears to have waned.
In-House vs. Outsourced Support
Most foundations (61%) are relying on in-house staff for database administration. On the other hand, nearly half of the respondents outsource systems/network support (47%) and server administration (44%), and to a lesser degree, help desk support (38%).
Regardless of which tasks foundations choose to handle in-house or outsource, PhilTech is continually providing powerful, transformative solutions for increasing charitable impact.
“TAG’s biennial State of Philanthropy Tech Survey will be launched again later this summer and will include the most comprehensive look at philanthropy technology practices, strategies, and resources,” said TAG’s President & CEO Jean Westrick and guest author and contributor to our Outside Perspectives Series. “All participating grantmaking organizations will receive the comprehensive survey results, an invaluable tool for IT planning and future investments.”
To learn more about the survey, visit tagtech.org.
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