AI and the future of human value in the charity sector
Stuart McKay · Posted on: November 24th 2025 · read
Sector news outlet Third Sector recently published an opinion piece written by Global Fundraising & Marketing Director of Mercy Ships, Darren Richards.
The article acknowledges the growth of Artificial intelligence (AI) but posits that it will not replace humans in the charity sector but instead change the roles they play – we have summarised it below.
Artificial intelligence is transforming how organisations operate, automating administrative, analytical, and even creative tasks once performed by people. For the not-for-profit sector, this shift brings both opportunity and challenge.
While AI can free staff time and improve efficiency, it also raises questions about the role of human value of empathy, judgement, and trust at the heart of charitable work.
Charities rely on relationships and community connection in ways machines cannot replicate. AI tools can assist with data analysis, impact measurement, or service delivery, but they must be applied thoughtfully to preserve human oversight and ethical accountability. Without clear planning, smaller charities in particular risk adopting technology that erodes personal engagement or introduces bias.
To adapt successfully, organisations should start by mapping their roles and identifying which tasks are most exposed to automation. Routine, high-volume, or rules-based processes such as data entry or scheduling can often be streamlined, allowing staff to focus on strategic and interpersonal work. Upskilling will also be crucial. Training in areas like data interpretation, digital governance, and service design will enable teams to collaborate effectively with technology rather than compete against it.
Good governance must underpin any AI strategy. Trustees should ensure that new systems align with organisational values, comply with data protection laws, and include appropriate safeguards for transparency. Clear communication with stakeholders and staff about how AI is being used can help build trust and reduce resistance.
"For charities, the key question is not whether AI will replace jobs, but how roles will evolve. By emphasising the uniquely human qualities of empathy, creativity, and moral judgement, and by embedding ethical oversight, organisations can harness AI to enhance rather than diminish their mission. In doing so, they can demonstrate that technology and humanity can work hand in hand for social good."
Sector overview report
The Office of the Scottish Charity Regulator (OSCR) has recently released the latest edition of its Sector Overview Report, offering a comprehensive snapshot of Scotland’s charity sector over the past three months. Drawing on data from the Scottish Charity Register, the report highlights the vital role charities play in Scotland’s social and economic landscape.
Its key findings are summarised below:
- Charity Numbers There are currently 24,696 charities listed on the Scottish Charity Register. Although charity registrations have increased, the overall number has declined since the peak in December 2022. This reduction reflects OSCR’s ongoing efforts to remove defaulting and inactive charities. The trend is expected to continue in light of recent legislative changes and the expansion of OSCR’s regulatory powers.
- Income Profile Nearly half of Scottish charities report annual income below £25,000. Only 7% exceed the current audit threshold of £500,000. With anticipated changes to this threshold, an additional 3% (approximately 740 charities) may qualify for the less burdensome independent examination regime.
- Sector Income The total gross annual income of Scottish charities stands at £18.22 billion. Despite the small proportion of charities earning over £500,000, they account for more than 93% of the sector’s total income. Institutions such as universities, further education colleges, registered social landlords, and Arm’s-Length External Organisations (ALEOs) significantly influence these figures.
- Volunteer Engagement The sector is supported by 251,049 charity trustees, with two-thirds of charities operating entirely through volunteer efforts. This underscores the sector’s reliance on individual goodwill to achieve charitable objectives. Changes to the Charities SORP disclosure requirements aim to better reflect the positive impact of volunteers. As OSCR collects more detailed trustee data, future overview reports may also offer insights into trustee board memberships across the sector.
- Charitable Activities Scottish charities employ 266,158 paid staff. Service delivery remains the most prevalent method of providing public benefit (51%), followed by the provision of facilities and grant-making to individuals or organisations. Charities are active in all 32 of Scotland’s Local Authority areas, with the highest concentrations in Edinburgh and Glasgow. While 40% of charities operate locally, 11% have an international or overseas focus.
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