Five smart IT cost-saving tips for charities in 2026
3 minute read
Ben Simpson
February 5th, 2026
As we head into 2026, charities and non-profits continue to face the challenge of doing more with less. Rising operational costs and increasing demand for services mean every pound counts. Technology can be a powerful enabler, but only if it’s managed strategically.
Working with a trusted partner can help you turn IT from a cost centre into a source of savings and efficiency. Here are five practical tips that go beyond the basics and can help future-proof your organisation.
One: Audit your software licences and right-size them
Many organisations pay for licences they don’t use or hold onto legacy subscriptions that no longer deliver value. A software licence audit can uncover unused seats, duplicate tools, and opportunities to consolidate.
Why it matters: Charities often experience staff turnover and seasonal volunteers, which can lead to over-provisioning.
Action: Use tools like Microsoft 365 admin reports or work with a partner to identify inactive accounts and downgrade where possible.
Real-world example
One charity recently worked with Phoenix Software to review its Microsoft 365 deployment. By working with us, we identified undeployed licences, inactive accounts, and disabled accounts, areas that were quietly draining budget.
The result? An estimated saving of £58,500, simply by aligning licences with actual usage.
Two: Embrace FinOps for cloud spend transparency
Cloud adoption is growing in the charity sector, but without visibility, costs can spiral. FinOps (financial operations) is a framework that combines finance, IT, and operations to optimise cloud spend.
Why it matters: Pay-as-you-go models are great for flexibility, but without governance, you can end up paying for idle resources.
Action: Implement tagging policies, set budgets and alerts, and consider reserved instances for predictable workloads. One-off consultancy services and managed cost optimisation services can take this burden off your team and keep costs under control.
Three: Leverage grant-funded tech discounts
Many charities miss out on vendor-funded grants and discounts for software and cloud services. Microsoft, AWS, and Google all offer significant savings for eligible non-profits.
Why it matters: These programmes can reduce costs by up to 60–70%, freeing up budget for frontline services.
Action: Review eligibility annually and work with a partner who understands the application process to maximise benefits.
Four: Automate low-value tasks to reduce labour costs
Manual processes like onboarding volunteers or managing donor data, consume time and resources. Automation tools can streamline these tasks without expensive custom development.
Why it matters: Every hour saved on admin is an hour redirected to mission-critical work.
Action: Explore low-code platforms like Microsoft Power Automate or pre-built integrations for CRM and finance systems.
Five: Adopt a lifecycle approach to hardware
Holding onto ageing devices might seem cost-effective, but older hardware often incurs hidden costs, higher energy use, more downtime, and security risks.
Why it matters: A planned refresh cycle reduces emergency purchases and improves staff productivity.
Action: Use asset management tools to track device age and performance and consider device-as-a-service models for predictable monthly costs.
Cost optimisation isn’t about cutting corners; it’s about making smarter decisions that support your mission.
Phoenix Software has helped charities unlock over £450,000 in ROI in the past two years, discover how these strategies could work for you.
About the author
Ben Simpson, Head of ITAM and FinOps.
With over a decade of experience, Ben helps organisations manage and optimise their cloud and software spend. He works closely with customers to reduce software risk, improve cost visibility, and implement procurement solutions that align with their business strategy.