AI policy implementation has almost doubled in the past year but remains lower than the amount of charities using AI tools, research has found.
Blackbaud’s Status of UK Fundraising 2026 report found the proportion of charities with an AI policy in place increased from 16 per cent in 2025 to 30 per cent this year.
The report, which is based on a survey of 380 charity staff carried out in January, found that a further 34 per cent of not-for-profits were working on developing an AI policy.
A quarter of charities did not have any AI policy in place or in progress, the report found.
AI policy implementation remained significantly lower than the percentage of charities using these tools, the research found.
AI use among charities rose to 91 per cent in 2026, it found, up from 77 per cent in 2024 and just 57 per cent in 2023.
Only 9 per cent of charity staff said they were not using AI at their organisation in 2026.
Almost one-third of respondents said their organisation actively encouraged them to use AI in their role, while nearly 40 per cent disagreed with this statement.
The report found that just 29 per cent believed AI was a priority for their organisation, while 41 per cent did not think it was a focus for their charity.
Nearly half of respondents, 45 per cent, did not believe their charity had the technical expertise to use AI effectively.
The biggest challenge to AI adoption was ethical concerns, which 61 per cent of respondents believed was a barrier.
Nearly 60 per cent thought that a lack of AI training was a big challenge, while 43 per cent cited insufficient resources and time to dedicate to AI; 40 per cent said limited technical expertise; and 30 per cent said budget constraints.
When asked what resources would help them make better use of AI, 65 per cent of respondents said guidance on ethical AI use would be useful, while 56 per cent wanted case studies of successful AI implementation in the sector.
Interactive training sessions were mentioned by 44 per cent of respondents as a useful resource; while 42 per cent wanted sector-specific templates for AI project planning and 40 per cent wanted funding opportunities for AI-related initiatives.
The report also examined the fundraising performance and financial health of the charities consulted, finding that 45 per cent of respondents said their organisation’s voluntary income increased compared with the previous year.
Of those consulted, 26 per cent said their voluntary income remained the same, while 29 per cent said it had decreased over the year.
It found that 32 per cent of the survey respondents said their charity had exceeded its fundraising target over the year, while 31 per cent simply met the target and 29 per cent failed to meet their goal.
The report found that most respondents believed that exceptional gifts were the main driver of their organisation’s growth, at 49 per cent.
This was followed by a focus on supporter experience, ranked as a growth driver by 36 per cent of respondents; then by new or different activities, mentioned by 31 per cent of respondents.
The most common reason behind income decline was the economic environment, mentioned by 61 per cent of respondents; followed by inadequate resourcing, cited by 43 per cent of people.