Unlocking Funding for Digital Transformation in the Third Sector

In an increasingly digital world, charities and not-for-profits must embrace technology to remain effective and impactful.

Yet, many organisations in the third sector struggle with outdated systems, limited digital expertise, and, perhaps most crucially, insufficient funding to make necessary upgrades.

According to a recent UK government report, archaic technology costs the public sector up to £45 billion in annual savings, highlighting the urgency of modernisation across all mission-driven organisations.

Why Digital Transformation Matters

From streamlining operations to expanding reach and improving service delivery, digital transformation can be a game-changer for charities and not-for-profits. Whether it’s adopting new CRM systems, improving website accessibility, or implementing AI-driven efficiencies, the right tech can free up valuable resources and allow teams to focus on what truly matters: their mission.

However, without investment in digital, organisations risk falling behind. Many still rely on outdated systems that are costly to maintain and inefficient. This is why accessing the right funding is critical to ensuring long-term sustainability and impact.

Where to Find Grant Funding

For charities and social enterprises, grants are one of the most accessible ways to fund digital projects. There are numerous funding portals that provide up-to-date listings of available grants:

• Funds Online – A comprehensive database of UK funding opportunities.
• Get Grants – Offers grant funding advice, training, and a regularly updated directory.
• Charity Excellence Grant Finder – A free resource for identifying suitable funding sources.
• GrantFinder – A leading funding database with tailored search features.

It’s worth keeping an eye on these resources and setting up alerts to stay informed about new opportunities.

Exploring Social Investment

Grants aren’t the only route. Social investment is another option, providing low-interest loans or blended finance (part loan, part grant) to support digital projects. These funds are typically aimed at kickstarting new initiatives, scaling impact, or investing in innovation.

Key social investors include:

• Social Investment Business – Offers loans and grants to help organisations scale.
• Access – The Foundation for Social Investment – Provides blended finance solutions.
• Think NPC – Supports charities in making strategic, impact-driven investments.

Unlike traditional loans, these investments are structured with a social purpose in mind, meaning they are tailored to the needs of not-for-profits.

Working with the Right Digital Partner

Navigating funding opportunities is one challenge; implementing digital transformation successfully is another. This is why working with a trusted digital partner, that understands the complexities and constraints of the third sector, is essential.

At Hiyield, we’ve supported organisations like Chasing the Stigma in securing funding and delivering a successful digital transformation project. Their new platform, developed in collaboration with our team, has expanded their reach and provided vital mental health support to more people than ever before. Read the case study here.

Whether you’re looking to modernise your website, improve your user experience, or integrate new technologies, we can help you navigate the funding landscape and build a digital strategy that aligns with your goals.

Final Thoughts

The third sector is under constant pressure to do more with less. But with the right funding and expert guidance, digital transformation is within reach. By leveraging grant funding, exploring social investment, and partnering with experienced digital specialists, charities and not-for-profits can future-proof their operations and amplify their impact.

If you’d like some support for your digital project, book a free, no obligation chat with Matt – Hiyield’s CTO. Let’s build something amazing together.