Every two years the Technology Association of Grantmakers (TAG), an organization of IT professionals (and others responsible for making IT decisions) working in philanthropy, conducts a survey of its members and the broader philanthropic sector. As the only comprehensive survey that tracks IT trends in philanthropy, the goal each time is to help provide insights into the technology landscape, practices, and perspectives of grantmaking organizations. A total of 355 foundations participated in this year’s survey, providing valuable insights into the state of technology in philanthropy.

Topics of the 2024 State of Philanthropy Tech survey included:

• AI tools: Adoption, perception, and governance
• Evolution of the workplace: Shifts in hybrid, remote, and in-person arrangements
• Trends in IT: Budgeting, staffing, and promotion
• Support for IT: Responsiveness and commitment to nonprofits that was started during the pandemic
• DEI: Support for Diversity, Equity, and Inclusion effort
• Current technology use: Tools, practices, and management approaches in philanthropy
• Cybersecurity: Strategies foundations are using to strengthen their security posture

Following is a brief overview of what the survey revealed.

AI Adoption and Governance

81% of foundations report some degree of AI usage, but only 30% have an AI policy. Most respondents (63%) lack both an AI policy and an advisory committee.

Workplace Models

69% of respondents plan to maintain or move to a hybrid/remote workplace model in 2024, down from 77% in 2022. Only 9% have moved to a fully remote model.  When it comes to community foundations in specific, 82% of those are using a hybrid workplace model, with a notable adoption of Foundant GLM and Community Suite for their GMS and donor portals.

Support for Nonprofits

67% of respondents continue to streamline applications, 56% streamline reporting, and 72% use paperless payments. However, support for providing tech and tools and removing funding restrictions has declined.

Tech Budget and Staffing

52% of foundations allocate 1%-5% of their operating budget to technology, while the average IT staffing ratio has worsened from 12:1 in 2022 to 14:1 in 2024.

DEI Practices

31% of respondents are increasing their DEI efforts, with a focus on equitable recruiting and hiring processes and user accessibility in hardware and software solutions.

Security Trends

Just 11% of foundations reported a security breach in the past two years, down from 12% in 2022. Most respondents have an Acceptable Use Policy, but only 42% have a remote work/access policy.

Tool Selection Trends

Fluxx, Salesforce, Foundant, and GivingData are the most used Grants Management Systems (GMS), with a decline in the use of custom GMS to 3% in 2024.

Cybersecurity Insurance

63% of respondents report having cybersecurity insurance, with Independent Private Foundations most likely to carry it at 76%.

Read the Report

Despite some challenges, such as the need for better AI governance and the decline in support for providing tech and tools to nonprofits, the survey reveals a sector that is continuously evolving and adapting to new technological advancements to better serve its mission. If you’d like to dive into the specifics of the 2024 State of Philanthropy Tech report, you can download a copy here.