In conjunction with CAST, The Clothworkers’ Foundation has supported charities through their digital infrastructure grants. But they recognised the need for a wider, more flexible digital fund. Jackie Brennan from CAST urges other funders to join the Collective Digital Fund.
CAST has been supporting The Clothworkers’ Foundation’s Open Grants Programme and specifically their grants for digital infrastructure for just over a year. It has been a successful partnership and we’ve supported The Clothworkers' Foundation to allocate over £750,000 to digital infrastructure during the past year. We have learned a lot from this work and seen some great examples of what charities can do with the funding.
More demand for funding than we can meet
However, one of the main reflections was confirming the huge demand for funding in this area - much greater than one funder can meet. We also know that this work is essential as it provides the building blocks of digital maturity across the sector, especially as differing levels of AI adoption threaten to widen digital inequalities.
While larger organisations can afford dedicated expertise and investment, small charities can struggle to access the tailored support, funding and guidance needed to navigate digital change. This fragmentation can weaken the sector's collective capacity to serve communities effectively and is increasingly becoming an urgent challenge.
Bigger and more flexible funding
While funding for digital infrastructure is valuable, we also see the potential for a bigger and more flexible fund which can meet wider needs across the sector including access to hardware, digital infrastructure, software, AI and digital skills and support. For instance, in terms of AI preparedness, the 2025 Charity Digital Skills Report states that while 74% of respondents agreed that AI developments are relevant to them, only 42% are responding to the opportunities and challenges surrounding AI. To respond to these needs and to have funding work as effectively as possible, CAST and The Clothworkers’ Foundation are looking to establish a Collective Digital Fund.
This collaborative model allows funders to pool resources, learn together and respond flexibly to the digital needs of the sector, while keeping the process straightforward for charities seeking support. For funders, it is also an opportunity to invest in digital transformation across the sector without requiring in-house digital expertise.
How the Collective Digital Fund would work
Funders contribute to a shared pot and can align their contribution with their strategic priorities (such as skills development, hardware provision, AI adoption, cyber resilience, or their priorities for the types of organisations they can support). In the early stages, the fund will be managed by CAST and The Clothworkers’ Foundation, who will build on their existing experience of running collaborative funding programmes to design and operate the fund. In practice, this work will include establishing the systems and processes needed to run the fund such as developing the digital platform and application processes, coordinating assessments, and ensuring funding is directed to the areas where it can have the greatest collective impact.
As additional partners join the fund, the approach will evolve collaboratively. Funders will help shape priorities, eligibility criteria and decision-making processes so that the fund reflects the shared ambitions of its contributors. Over time, governance arrangements are likely to include a steering group of funders to guide strategy and ensure decisions are transparent and collective.
Benefits for funders and charities
This collaborative model allows funders to pool resources, learn together and respond flexibly to the digital needs of the sector, while keeping the process straightforward for charities seeking support.
For funders, it is also an opportunity to invest in digital transformation across the sector without requiring in-house digital expertise.
By pooling resources and aligning funder priorities, we would aim to:
- Rapidly provide funding and support to the sector (without having to wait for all funders to develop internal expertise around this funding)
- Accelerate digital adoption across small and medium charities in ways that meet their communities’ needs.
- Build sector-wide resilience through coordinated investment
- Enable faster, more responsive funding decisions
- Demonstrate a replicable model for collaborative philanthropy
Interested in exploring participation?
The Clothworkers’ Foundation is considering allocating up to £750,000 per year initially for two years. CAST and The Clothworkers' Foundation are currently speaking with funders who are interested in contributing to the Collective Digital Fund pilot through Spring and Summer for an Autumn 2026 start. We would particularly welcome conversations with funders who:
- support small and medium charities
- are interested in digital transformation, infrastructure or AI
- can commit funding for a two-year pilot.
Contact Dan Sutch, Director, CAST on dan@wearecast.org.uk or Jackie Brennan on jackie@wearecast.org.uk to arrange a conversation.
The Funders Collaborative Hub publishes a range of perspectives. The views expressed here are those of the authors, not necessarily those of ACF.
