By Hamizah Myra, Keith Detros, and Nguyen Hoang Min Ngoc, Tech For Good Institute
Nonprofit organisations form the backbone of our social safety net by playing a vital role in building community resilience. This diverse sector, encompassing NGOs and social service agencies, form a critical safety net for our most vulnerable populations, from low-income families to seniors facing isolation, at-risk youth, and people with disabilities. In times of crises and shocks, the sector provides social support and aid to their clients. They often act as the first point of contact for their clients and cover the last mile in the delivery of public services.
To remain effective and relevant, nonprofits in Southeast Asia need to keep pace with the region’s digital transformation. Drawing on the 2023 Asia–Pacific NGO Digital Capability Report by Infoxchange, this article examines the digital landscape of the nonprofit sector across Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam (collectively “SEA-6”) to understand gaps in their digital transformation and opportunities to enhance their resilience.
State of Digital Transformation of Nonprofits in Southeast Asia
The data was collected from 269 nonprofit representatives across SEA-6 in 2023. Most of the organisations have fewer than 50 full-time staff or volunteers and operate in both urban and rural areas, with a notable proportion also serving exclusively urban areas. The respondents also hold a range of different positions within their organisations.
Figure 1: Online presence of nonprofits in SEA-6¹
Over 91% of respondents had an online presence through websites, third-party platforms, or both. Commonly used platforms by nonprofits to enhance their communication, advocacy, and mobilisation efforts. include Facebook, WhatsApp, YouTube, and LinkedIn. Digital platforms offer the opportunity to build social capital and foster deeper connections with supporters, donors, and clients efficiently, as evidenced by only 15.6% of respondents having invested in a website without presence on other platforms.
Online platforms like Giving.sg in Singapore offers nonprofits scalable fundraising features, enhanced accessibility, and real-time analytics to amplify their social impact while ensuring secure giving via government endorsement, certified data centres and advanced transaction protection. During the pandemic, when traditional fundraising methods were disrupted, Giving.sg helped raise 2.5 times more funds for over 600 charities in 2021 compared to the previous year.
Figure 2. Overall digital technology environment of nonprofits in SEA-6²
The respondents demonstrated significant diversity of digital maturity. Across the region, 74% have reached a ‘basic’ or ‘functional’ level with either simple systems to meet immediate needs or stable and appropriate infrastructure to enable staff to perform their roles effectively. In fact, approximately 61% of nonprofits in SEA-6 use the two most prevalent cloud collaboration platforms, Microsoft 365 and Google Workspace, to facilitate seamless communication and optimise their operations. However, over a fifth of organisations in Thailand, Indonesia, and Vietnam remain ‘challenged,’ grappling with outdated infrastructure that disrupts their work and requires constant repairs. Despite more than a quarter of Indonesian respondents identifying as “challenged” in digital development, Indonesia also had the greatest share of respondents who might be considered “leading” in their approach to digitalisation. Overall, less than 10%, (8.18%) regard technology as a critical investment that aligns with their strategic goals and transforms their operations.
Figure 3. Documented or Approved Digital Technology Plan of nonprofits in SEA-6³
The above findings reflect the lack of intentional planning for digitalisation. Only 15.6% of organisations surveyed have a documented and approved digital technology plan in place. The remaining organisations either had no plan or plans in development. This widespread absence of concrete digitalisation roadmaps suggests the nonprofit sector’s gap in digital preparedness, likely rooted in the financial constraints typically associated with NGOs, where limited budgets often prioritise immediate programme delivery over long-term strategic investments.
Figure 4: Annual IT expenditure in a financial year across nonprofits in SEA-6
The limited budgets for digitalisation can be seen in respondents’ assessment of their budget declarations. Most invest less than 10% of their operational expenditure (OpEx) on information technology investments.
Figure 5: Top 3 Technology Priorities of nonprofits in SEA-6
While IT budgets remain tight, their top technology priorities – better marketing, improved websites, and enhanced digital skills – suggest a push for digital transformation towards customer-facing technologies and workforce capabilities. However, these initiatives are often funded through alternative channels, bypassing traditional IT budgets that primarily focus on hardware and equipment as well as software and licences. Marketing departments typically cover online engagement costs and human resources or training budgets support digital skills development. This emphasis on customer-centric initiatives, funded through alternative budgets, may come at the expense of investments in hardware, equipment, and internal systems, which remain largely overlooked due to constrained IT budgets.
Figure 6: Top 3 Training Priorities of nonprofits in SEA-6
Training priorities, however, indicated emphasis on general enabling technologies and skillsets, including migration to nonprofit collaborative cloud (NCC) environments, data management and security. This emphasis is crucial as nonprofits are a source of valuable data as they gather sensitive information on donors, clients, and other stakeholders. According to Microsoft’s Digital Defense Report 2023, which tracks activites by nation-state threat actors, NGOs are among the sectors most targeted by nation-state cyber threats. Nonprofits are also observed to be attacked specifically for the causes they support, such as malware attacks on organisations assisting refugees.
The imbalance between external-facing digital initiatives and internal IT investment creates a significant vulnerability. While organisations recognise the importance of change management and team development for efficient operations, the lack of investment in internal systems may compromise the effectiveness of these training initiatives and increase cyber risk exposure.
This situation underscores the need for a balanced approach that not only develops digital skills but also strengthens internal IT frameworks. Such an approach is essential for safeguarding sensitive donor and stakeholder data, ensuring operational resilience, and effectively managing the growing cyber threats faced by the nonprofit sector.
Leveraging Technology for Social Impact
According to Salesforce’s 2022 Nonprofit Trends Report, which surveyed over 1,600 nonprofit managers and executives across seven Western countries, digitally mature nonprofits are four times more likely to achieve mission goals and twice as likely to improve operational efficiency, with notably more motivated employees. Data-driven approaches can facilitate transparency and accountability, so that nonprofits can demonstrate the impact of their work, ensuring that the work of nonprofits continues to resonate with both beneficiaries and donors.
Therefore, key recommendations for advancing the digital transformation of the nonprofit sector include:
For Nonprofits
1. Embrace mobile-first strategies to enhance reach and impact in Southeast Asia
As Southeast Asia increasingly shifts towards mobile-first and mobile-native usage, nonprofits must adapt their digital strategies to keep pace. Optimising for mobile aligns with the dynamics of the communities they aim to serve. By designing mobile-friendly websites, applications, and content, nonprofits can ensure a seamless user experience for communities that rely primarily on mobile devices. Tailoring digital transformation efforts to these mobile technologies will allow nonprofits to expand their reach, strengthen connections with beneficiaries, and streamline operations, ultimately increasing their impact in the region’s rapidly evolving digital landscape.
2. Leverage existing digital platforms to maximise efficiency and minimise infrastructure costs
Nonprofit organisations can benefit greatly by adopting a platform-first approach in their digital transformation efforts. Digital platforms offer efficiency, accessibility, scale, and agility that help address pressing social needs. By leveraging existing digital platforms, nonprofits can expand their reach and impact without the need for heavy infrastructure investment. For example, delivery platforms like Grab can be utilised to streamline social assistance programmes by managing goods delivery more efficiently. Similarly, well-established fundraising platforms, such as the aforementioned Giving.sg, offer nonprofits a ready-made infrastructure for collecting donations and managing campaigns. In addition, platforms like TechSoup provide valuable resources to nonprofits, offering access to discounted or donated technology products. These platforms allow organisations to modernise their operations with minimal costs, enhancing efficiency while reducing the need for extensive in-house infrastructure. With the support of these digital tools, nonprofits can focus more on their core missions while benefiting from the capabilities of established platforms.
3. Lean on simple yet effective practices to mitigate cyber risks
Concerns over data security are well-founded, as outdated systems are potential weak points for attacks and increased adoption of digital tools without proper training heightens the risks of data breaches. The first step in addressing these risks is understanding the organisation’s assets, liabilities and digital vulnerabilities. The recognition of these risks will help nonprofits make informed decisions to safeguard their systems and respond effectively to threats. Following this, simple practices such as least privilege access and regularly updating software may be adopted.
While non-profits are rightly concerned with the return on investment for digital initiatives, many low-cost or free resources are available. These include services like TechSoup for discounted software tailored to nonprofit needs, and resources such as the CyberSecurity Essentials for Social Service Agencies and Charities guide by Singapore’s National Council of Social Service, which offers practical strategies for enhancing cybersecurity without significant financial investment. In addition, fostering a culture of cybersecurity within the organisation is crucial, as technical measures alone cannot fully protect an organisation’s data.
For Private Sector
1. Foster collaboration with nonprofits via sharing of technology and best practices.
Private sector companies should prioritise sharing technology and best practices with non-profit organisations to foster digital transformation in the social sector. Initiatives like Cloudflare’s Project Galileo exemplify this approach, providing free cybersecurity services to vulnerable organisations. Companies can offer pro-bono technical expertise, discounted or free software licences, and access to advanced technologies that non-profits might otherwise find unaffordable. This collaboration can extend to knowledge sharing through workshops, mentorship programmes, and joint innovation projects. By understanding the tech priorities and training needs highlighted by non-profits, companies can tailor their support effectively. This approach not only aids nonprofits in their digital journey but also allows companies to fulfil their corporate social responsibility goals, enhance their reputation, and potentially develop new markets. The synergy between private sector expertise and non-profit missions can lead to more efficient, innovative solutions to social challenges.
For Regulators
1. Develop toolkits or simplify complex compliance measures to empower nonprofits in navigating digital policies
Given that many nonprofits in Southeast Asia are at basic or functional levels of digital maturity, regulators should create tailored guidelines and frameworks to support their digital transformation journey. Similar to the ASEAN Model Contractual Clauses (MCC) for Cross Border Data Flows, regulators could create standardised, easy-to-implement frameworks for various digital policies affecting nonprofits, accounting for different levels of digital maturity, from ‘challenged’ to ‘leading’. These could include simplified versions of privacy regulations, cybersecurity standards, and digital fundraising rules tailored specifically for the non-profit sector. Such toolkits should offer clear, step-by-step guidance, templates for necessary documentation, and user-friendly checklists to ensure compliance. By simplifying complex regulatory requirements, regulators can reduce the burden on resource-constrained non-profits, enabling them to allocate more time and resources to their core missions while still maintaining high standards of digital governance and security.
The authors would like to acknowledge InfoXchange as the source of the Southeast Asia dataset.
¹ Note for Figure 1:
- Yes (website and third-party platforms): We use both website and social media such as Facebook.
- Yes (third-party platforms only): We only use social media such as Facebook.; Yes (website only): We only use website.
- No: We do not have an online presence.
- Challenged: We have a failing infrastructure, and our technology time and budget generally goes towards creating workarounds, repairing old equipment and duplicating tasks.
- Basic: We have basic systems in place to meet most immediate needs but that is all.
- Functional: We have stable, appropriate infrastructure and systems that enable staff/ volunteers to perform their jobs effectively.
- Leading: We recognise that technology is an investment in our mission, and leadership integrates technology decisions with organisational strategy. Technology makes a real difference to our staff/ volunteers and the work they do with our clients/ members/ community.
- Yes: We have a documented or approved digitalisation plan in place.
- Partial: We have a digitalisation plan that has not been fully approved, costed, or implemented.
- No: We do not have a digitalisation plan in place.
