India

Digital for Good: India

Country Overview

In India, the connection between religion and giving is especially important, as almost all religions have some component of philanthropy engrained in them. Hindus consider ‘Daan’ (or giving) as one of the greatest virtues and provider of ‘Moksh’ (liberation). In Sikhism, ‘Dasvandh’ directs one to donate one tenth (10 percent) of their income in the form of ‘Seva’ (act of assistance or service). Indian Muslims adhere to the principles of ‘Zakat’ and ‘Sadaqa’ to help those in need. Christians in India mostly donate to schools and hospitals. Along with religious giving, prominent families and business houses give back to communities recognizing their role in supporting social welfare.

Charities Aid Foundation (CAF) India

The IU Lilly Family School of Philanthropy and CAF India partnered on a survey of over 1,000 individuals in October 2022 to understand the emerging trends of giving in India with a special focus on digital giving.

Learn more about CAF India.

Historically, giving in India has mostly taken place informally, and anonymously, and informal giving still remains in practice across the diverse cultures of India. However, the advent of formal philanthropy and digital giving in India has shifted giving to be more conscious and structured. All forms of individual and retail giving, especially in the digital giving space, demonstrated potential for higher giving rates in the future. To develop a better understanding of these shifts, this study identified and examined the relationship between demographic factors and the drivers of online giving, and the new and emerging giving methods in the digital space in India. The philanthropic paradigm in India constitutes practices and traditions from the origins of early Indian society, while generational differences and shifts of today are shaping giving behavior. Indian Millennials and Gen Z are the largest population groups in the entire world, which undoubtedly holds great significance for both modern philanthropy and the digital age—even more so in India where both generations are driving the evolution of India’s economic and digital revolution. Hence, the research study was designed to understand emerging trends in the Indian philanthropic space, with special attention to the relationship between demographic factors and the drivers of online giving.

Access the Digital for Good: India report.

The effects of the Covid-19 pandemic on philanthropy in India was visible through the decreasing number of donations at the time, as the pandemic stifled people’s ability to earn disposable income.

Giving saw a decline across all generations^[1] since the start of the Covid-19 pandemic. Forty-seven percent of respondents either reduced their giving or stopped donations altogether. However, more than half of survey respondents who donated (51.2 percent) added donations for Covid-19 related relief and need, on top of their regular giving to diverse social concerns, when the pandemic struck.

Since the onset of the pandemic, giving modes also shifted from predominant cash donations to digitalized payment channels. Cash transactions slowly returned as lockdown restrictions eased and vaccine availability increased, but the sudden and massive introduction to the convenience of online transactions have expedited the adoption of online giving. This presents an opportunity to engage more donors to give via online methods.

_{[1] Our study defined the age groups according to the year individuals were born. Baby Boomers spanned 1955 – 1964; Gen X were 1965 – 1980; Millennials fall under 1981 – 1996; and Gen Z were 1997 – 2012.}

Giving within and across different generational groups saw fluctuations

Millennials led the way when it came to donating to Covid-19 related needs and relief, but Baby Boomers were the most regular donors overall (30 percent) out of all age groups. We also found that Millennials use mobile wallets (31 percent) more than Gen X, Baby Boomers, and Gen Z. Surprisingly, Baby Boomers who are expected to be less tech-savvy, are using lesser cash (47 percent) in comparison to Gen X (58 percent), Millennials (60 percent), and Gen Z (54 percent). Baby Boomers are also increasingly utilizing internet banking (42 percent) than their younger counterparts, with Millennials (37 percent), Gen Z (33 percent), and Gen X (29 percent) following behind.

Among people who give, 70 percent agreed that a monthly or periodic giving plan is beneficial. Millennials, closely followed by Baby Boomers, led this thought. This presents an opportunity to engage these donors into long-term strategic givers and understanding their motivations to make giving a regular practice. Overall, this study suggests that Baby Boomers are open to using digital mediums and are relatively more influenced by online advertisements. Thus, it presents an opportunity for Baby Boomer donors to be enlisted and involved as champions for a cause.

Online advertisements emerged as a new way to induce donations in India

Survey results suggested that online advertisements displayed on various websites and pages were effective in converting notice to transaction, as approximately 70 percent of donors shared that they have donated at least once (seldom, sometimes, frequently, always) after seeing the ads related to charities or charitable donations, while approximately 50 percent have donated more than once (sometimes, frequently, always) upon seeing the related ads.

However, they influence age groups differently. Baby Boomers are the most likely to give as 18 percent gave regularly based on online advertisements. Our study found that 38 percent of Gen Z respondents never donated after seeing online ads or were not influenced by online advertisements.

Indian donors primarily give due to their compassion towards people in need. However, donors consider that formal giving has to involve large amount of donations.

Respondents shared that the major motivational factors for them to give were their compassion towards people in need (36 percent), the sense of empowerment they received by giving to a charitable cause (25 percent), and the tax credit they receive for charitable contributions (21 percent). Additionally, over 50 percent of respondents shared a strong need to see details of beneficiaries on the donation webpage. Communications to encourage individual givers can be designed to embed these motivating elements for better donor engagement.

People also tend to donate small amounts when giving informally. When formal giving is considered, around 23 percent of respondents reported that they were not able to spare their disposable income for donations. This perception is based on the idea that formal donations have to be a big amount. Thus, regular contributions of small amount through payroll or subscription giving can be encouraged to support a giving culture. Additionally, the giving culture in India would greatly benefit from improving donors’ perceptions of charitable organizations in India. The trust deficit faced by charities in India is not new. The study also revealed that the top three factors deterring givers from donating are: lack of trust, transparency, and clarity on the spending of donations received by charitable institutions. These factors suggest that donor relationship and brand credibility are extremely important for charities.