For the first time, Charity Finance Group (CFG), as part of the Civil Society Group (CSG), is calling on government to support the sector to ‘safely adopt AI’ so that it can continue to ‘deliver for communities’.
The call comes in the group's submission to government ahead of the autumn budget and outlines key reforms that would support the voluntary sector to continue delivering vital services across the UK.
Endorsed by CEOs from CFG, NCVO, SCVO, WCVA, ACEVO, ACF, NAVCA and others, the budget submission follows the government’s launch of the Civil Society Covenant earlier this year, which recognised the sector’s essential role in building resilient communities and forming the ‘backbone of our society’.
The ‘asks’ in the autumn budget submission include:
- Support for safe, proportionate AI adoption in the sector, including engagement from government with the Charity AI Task Force
- Creation of a new fund to tackle the digital divide among smaller charities, supporting infrastructure and skills development
- Sustainable local government funding to enable local authorities and charities to deliver preventative services and meet rising demand
- Modernisation of Gift Aid and preservation of higher rate relief to unlock more charitable giving
- Promoting philanthropy to boost contributions from business.
AI rises up the agenda
To ensure civil society keeps pace with technological change, the submission calls for targeted government support to enable safe and proportionate AI adoption across the charity sector.
With 76% of charities now using AI, up from just 35% in 2023, there is clear momentum in the use of AI tools and services. However, this comes with a pressing need for more resources, skills and guidance to ensure responsible and ethical use.
The Civil Society Group is urging the government to engage with the Charity AI Task Force on an equal footing to the SME AI Task Force, and to co-design a UK-wide support package that reflects the unique needs of voluntary organisations.
This should include structured engagement with government departments, and leverage existing infrastructure to minimise cost and complexity.
CFG’s Head of Policy, Richard Sagar, comments:
"The sector is juggling multiple challenges; from a difficult funding environment, to being stretched by contracts that fall financially short, all whilst getting to grips with a sea-change in the way we all work and deliver impact.
"As part of the Civil Society Group, CFG are calling on the government to implement the high impact reforms we've set out in our budget submission. By adopting these, the government will be supporting charities and other voluntary organisations to continue providing essential services and contribute to the government’s missions. It will also be reinforcing its commitment to the new Civil Society Covenant.
"For the first time, we are asking the government to provide a package of support for digital transformation and AI adoption, particularly for smaller charities and voluntary organisations. We want to minimise the threats and leverage the opportunities that these new technologies present. It's vital that AI and other technologies are harnessed in a way that can unlock new efficiencies and improve outcomes for beneficiaries.
"The government’s support for our asks will be crucial to ensuring a healthy future for the charitable sector, and the communities and people they support."
Download and read the Civil Society Group's submission to the Autumn Budget 2025
Editor’s notes
About CFG
CFG is the charity and membership organisation that supports other charitable organisations to make the biggest difference possible. We do this by helping them to make their money and resources go further, by putting financial leadership at the heart of their decision-making. Since CFG was founded in 1987, we have evolved to welcome all finance professionals working for charitable and social change organisations. We also welcome non-finance professionals who recognise that we deliver greater impact when we are financially confident, trustworthy and dynamic. Today, CFG’s vibrant community manages around one third of the UK’s entire charity sector income. We are a diverse and inclusive community of people who are passionate about delivering impact through financial leadership. Together, we lead the way for charity finance.
Contacts
Emma Abbott, Communications Manager, CFG
Glyn Sheldon, Communications Officer, CFG
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