The voluntary, community and social enterprise (VCSE) sector is at an important crossroads. Digital technology is no longer a “nice to have” but a central part of how organisations connect with communities, deliver services, and shape wider systems of support. A recent report from Charity Digital highlights both the opportunities and challenges that lie ahead for our sector as we navigate this digital future.

Opportunities for Transformation

Digital tools hold huge potential to change how VCSE organisations work:

• Extending reach and accessibility: Online platforms can help charities connect with people who might otherwise be excluded, breaking down barriers of geography, mobility, or time.
• Stronger data and insight: Collecting and analysing information digitally allows organisations to better understand community needs, track impact, and make the case for resources.
• Efficiency and sustainability: From cloud-based systems to digital fundraising, the right tools can reduce admin burdens and free up staff and volunteers to focus on what really matters.
• Collaboration and co-design: Digital spaces enable new forms of partnership, where organisations and communities can come together to co-create solutions, share knowledge, and build collective capacity.

Risks and Challenges

But the digital shift also comes with risks:

• Exclusion: Small and micro organisations, particularly those led by and for marginalised communities, may struggle to access the funding, training, or infrastructure needed to adopt digital tools.
• Data ethics: Collecting and using data raises vital questions about privacy, consent, and how information is shared between organisations and systems.
• Sustainability: Investing in technology is not a one-off cost. Ongoing updates, training, and cultural change are required to make digital transformation meaningful and lasting.
• Human connection: There is always a danger that digital becomes a substitute for, rather than a complement to, face-to-face, relationship-based work which remains at the heart of community action.

Building a Fair Digital Future

The digital future of the VCSE sector must be one that is inclusive and equitable. That means ensuring access to technology is not dependent on organisational size or income, but shaped by the principle that all communities deserve to be heard and supported.

Investment in digital skills and infrastructure should go hand in hand with investment in people - recognising that technology only has value when it strengthens human connection, trust, and participation. The future is not simply about adopting the newest tools, but about using digital thoughtfully, in ways that serve communities rather than systems.

Looking Ahead

VCSE organisations will continue to play a vital role in how society adapts to digital change. They are uniquely placed to bring lived experience, creativity, and deep trust into conversations about how digital is used. The challenge for the sector — and for funders and partners — is to make sure that no one is left behind, and that technology works in service of social good rather than as a barrier.

As the article suggests, the digital future is already here. The real question is how we shape it so that it amplifies the strengths of communities, supports equity, and ensures that charities remain not just service providers, but vital engines of connection, inclusion, and change.