Despite the high number of donations by Indians across the spectrum — mainly to religious organisations — recent data has shown an increase in donations to non-religious organisations whose social impact work has been noted especially during the Covid-19 pandemic. Why, then, do non-religious organisations still attract relatively less donations, and predominantly from large urban areas? Divya Chopra and Shaivya Verma analyse the data, and suggest ways in which such donations could increase.
The Covid–19 pandemic brought to the fore the monumental role played by non-religious organisations in relieving societal distress in India. Despite their critical role, it is instructive to note that such organisations receive the smallest proportion of household donations in India. Non-religious organisations include non-government organisations (NGOs), agencies like UNICEF, and government-led relief funds like #PMCares — organisations that are set up for a non-religious cause, serve a social purpose and are not run by any religious body.
Recent reports on household donations released by the Centre for Social Impact and Philanthropy (CSIP) at Ashoka University show that of the total household donations made in 2021–22, only 2 per cent were made to non-religious organisations (lowest among all recipient groups) whereas a whopping 75 per cent was bagged by religious organisations followed by 13 per cent by ‘persons engaged in beggary’. (Religious organisations here refer to places of religious worship including temples, mosques, gurudwaras, churches, and similar institutions.) Further, of the total donations made to non-religious organisations, about one-fourth were made in ‘in-kind’ form, which was relatively high as compared to what was donated to other recipient groups. This was intriguing and prompted us to examine the underlying reasons that inhibit Indian households from donating to non-religious organisations.
This post looks at ‘push’ and ‘pull’ factors that impact donations to non-religious organisations. We do this by understanding the household category which donates to non-religious organisations and the motivations (the intrinsic ‘push’) behind such donations. We then look at the external (‘pull’) factors which can encourage or discourage households from donating. Through this, we find ways in which non-religious organisations can potentially garner support from more Indian households.
Who Donates to Non-Religious Organisations?
Data on donations by Indian households shows an interesting pattern. While almost all socio-economic groups donate to religious organisations, there is a clear distinction in terms of donor groups for non-religious organisations: a greater proportion of households in the higher socio-economic group (50 per cent) reported donating to non-religious organisations compared to middle and lower socio-economic groups (10–29 per cent). Similarly, a higher proportion of households in urban areas or large towns (51 per cent) were donating to non-religious organisations compared to households in small towns or rural areas (18–20 per cent).
‘Push’ Factors: Overall, ‘religious beliefs’, ‘religious customs’ and ‘mental satisfaction/self-motivation’ were the primary motivations for donations, irrespective of the recipient group. Our finding shows that ‘mental satisfaction’ and the ‘desire to support a specific cause’ are more important driving factors for households in the higher socio-economic group than they are for those in the middle and lower socio-economic groups. The middle and lower socio-economic groups are relatively more driven by ‘religious beliefs’ and ‘religious customs’. A similar pattern of differences is visible in motivations across rural–urban geographies. For households in large urban townships, ‘mental satisfaction’ is a more important motivation than it is for households in small towns or rural areas.
Further slicing of motivations for donations specifically to religious organisations versus non-religious organisations shows that ‘religious customs’ are the primary motivation to donate to both categories of organisations. What stands out is that for households donating exclusively to non-religious organisations, ‘mental satisfaction/peace’ and the ‘desire to support a particular cause’ were equally important motivations as ‘religious customs’, and possibly responsible for driving donations towards non-religious organisations.
Thus, ‘mental satisfaction/ self-motivation’ stands out as the distinctive motivation or the ‘push’ to donate to non-religious organisations in India. However, the question that remains is that if ‘religious customs’ are also important and are the primary motivations to donate to either set of organisations then why is it that non-religious organisations are not able to get as many donations as religious organisations?
‘Pull’ Factors: To understand the factors that ‘pull’ households toward making donations to non-religious organisations, we analysed factors that encouraged households to donate as also those which discouraged them.
Organisational outreach and the belief that funds will be properly utilised are the primary reasons for households to choose to donate to non-religious organisations. Organisational outreach was the primary ‘pull’ for households in middle and lower socio-economic groups (44–48 per cent) and rural areas (41 per cent). The belief that funds are utilised properly or ‘trust’ in non-religious organisations was a stronger ‘pull’ for households in higher socio-economic groups (33 per cent) and in large towns (34 per cent). The reputation of the organisation also played a critical role in driving donations in large towns. Surprisingly, ‘tax benefit’ (exemption on payable tax on income by giving to charity) did not appear as a primary driver for donation.
For households not donating to non-religious organisations, mistrust in organisations (44 per cent) and individuals asking for funds (27 per cent) were the main deterrents; many also had apprehensions about the proper utilisation of funds (30 per cent). Additionally, a lot of households believed that ‘non-religious organisations require a significant donation amount’ which acts as an inhibitor for households intending to donate. This is particularly true for households in lower and middle socio-economic groups, and in small towns.
Of all factors, ‘trust’ stands out as the critical ‘pull’ factor which can make a difference in households’ decision to donate. The belief that the individuals and organisations asking for donations are genuine and do credible work needs to be verified by households in order for them to part with their money.
How Can Non-religious Organisations Attract more Donations?
Households do seem to have the ‘push’ to donate to non-religious organisations; it is for the organisations to strengthen the ‘pull’ and gain the trust of households to get support for the impactful work they do. Organisations could increase trust by reaching out to households and establishing their (and the individual fundraiser’s) credentials. Personal visits to households, and having the same person liaising with the household over a period of time, can strengthen the relationship with the donor. There also needs to be clarity on the expenditure of the donations — where will the funds go, how can the donor verify the utilisation of funds, etc — these are important for households to establish trust. Households will also be able to donate more proactively if they can donate in cash and in small amounts, thereby debunking the perception that non-religious organisations only accept significant amounts as donation. A website which showcases organisations’ work and allows for online donations will also go a long way.
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Nice article regarding to donation
An analytical insight into donations in India. The efforts of the authors are commendable in covering the whole gamut of donations and the reasons thereof.