Indians donated 43% more in pandemic year 2020: survey

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New Delhi: The average amount of individual donations to philanthropy in India rose 43% during the pandemic, a report released on Sept. 24 by the Charitable Foundation (CAF), a global non-profit organization, based on online surveys of 2,000 Indians in different cities. More than 60% of those polled said government and businesses should have contributed more to charitable causes during the pandemic.

The India Giving Report 2021 looked at daily giving – individual acts of charity in the form of money, goods or community services – and found that 85% of those surveyed had supported charities or their community in “direct response.” pandemic ”. Two in three gave money or goods to a charity or community service, and three in 10 gave money to friends, family or neighbors, as in the case of practice in India.

The average amount of donations over the past year has increased from Rs 10,941 in 2019 to Rs 15,628 in 2020, according to the study. Other trends reported by the study include an increase in donations to local organizations compared to international organizations, and more philanthropy directed to new causes.

This report follows an unprecedented leap in India’s stance on CAF Global Giving Index 2021– it has gone from a 10-year average of 82 to 14 in 2020. This indicates a general upward trend in individual giving in India, said Avijeet Kumar, COF India Director of Operations.

“Charitable response to the first wave as during disasters”

The pandemic that claimed 446,081 lives in India has so far created multiple crises. It put a strain on the country health resources, had an impact on his economy and left millions of migrant workers unemployed and stranded in cities, like IndiaSpend reported. Panicked communities found themselves searching for vital drugs and oxygen. But with the collapse of systems, individuals, volunteers, non-profit organizations, and communities intensified.

“The dynamics of the first wave were exactly what one would expect to see in a disaster, albeit on a larger scale,” said Ingrid Srinath, director of the Center for Social Impact and Philanthropy (CSIP) at Ashoka University. “There has been damage, loss of life and loss of livelihoods, and people have responded. in other forms, such as information assistance. “

Up to 51% of all donors whose monthly family income exceeds Rs 1 lakh told CAF that they had given “more” than usual to charity. One in three (33%) of those with a monthly income of over Rs 50,000 have given to new and different causes. Up to 33% of those whose monthly family income exceeds Rs 30,000 have redirected charity to those responding to the pandemic.

At least $ 1.27 billion has been paid in 52 days to the Prime Minister’s Fund for Citizen Aid and Emergency Relief (PM CARES) for help with Covid-19, our month of May 2020 analysis found, with even private companies facing losses and layoffs contributing significantly.

Blockages and social distancing standards have also facilitated an increase in online donations – the survey found that 44% of Indians surveyed preferred using digital wallets compared to 28% in 2019. GiveIndia, one of the largest donation platforms in India, has set up a Indian COVID Response Fund April 10, 2020, shortly after the announcement of the first lockdown. The fund, which raised over Rs 220 crore, saw 350,000 donors daily last year, said report. One-time donations ranged from Rs 50 to Rs 5 crore. Razorpay payment portal also reported a 180% increase in online donations between March 24 and April 23, 2020, the first month of national confinement.

The second wave of the pandemic saw Indians affected in greater numbers, directly impacted or witnessing suffering in their communities. Families lost their jobs and saw their incomes drop and became unsure of what the future tenuous. Indians have stepped in to help each other find essential services for those in need and the Indian diaspora has contributed to Covid-19 relief funds in large numbers and in huge amounts, Srinath said.

Most common informal donations

Until 2019, donations to religious organizations were the most common method of philanthropy in India, according to the CAF survey. This year, however, financial support to religious organizations took second place, with direct donations to friends, families and others taking priority. This type of donation went beyond donations to charities or non-profit organizations.

Religious and community donations are vast and rooted in Indian culture. Since this is counted as a duty and not as charity, it is rarely mentioned in surveys and leads to underreporting of individual charity in India, we reported in November 2019. Srinath, who is currently leading an upcoming CSIP survey on individual giving in 2020, said this attitude towards giving is true for all socio-economic classes in India.

Charity recipients are typically community and religious organizations, accounting for 90% of daily donations in India, according to a 2019 report. Individual donations in India appear low, said the Do Good Index 2021 from the Center for Asian Philanthropy and Society, which ranked India among the 18 Asian countries.

Confidence in local philanthropy increases

About one in three respondents (35%) gave more to charities that supported their local communities, while one in six reduced donations to international charities, according to the survey.

“Local philanthropy might be the most preferred form of giving, primarily because donors are able to see first-hand the impact of their donation,” Kumar said. “The report says this is especially true for people with a monthly household income between Rs 50,000 and Rs 90,000 – the educated middle class, who are careful with their investments.”

What would motivate people to give more? “Trust the way their money is spent” and “more transparency in the NPO [non-profit organisation]/ charitable sector “got the first and third highest responses, while” feeling secure in your personal situation “came second, according to the CAF report.

India lacks standards for the regulation and transparency of information on nonprofits, Srinath said. Despite platforms like guide star, which help donors find credible organizations, the perception remains that there is a lack of transparent information on the functioning of charities.

Economic instability could hit generosity

Most people give for emotional reasons: half of all respondents (49%) told CAF that giving makes them feel good, and two in five said they give to help resolve issues. social problems (40%). About one in three said they donated because they wanted to help people less fortunate than them (35%), because they cared about the cause (35%), or because they thought it helped them become better people (35%). This year, the acute awareness of how Covid-19 is affecting people has resulted in a wave of compassion and empathy, which has prompted people to give, said Atul Satija, CEO of GiveIndia.

Tax incentives for donations were also cited as a reason some (8%) donate. The lack of tax incentives for donations to nonprofits and social development organizations was another reason, the Doing Good Index 2021 noted, individual donations may appear low in India. The government should encourage and incent donors to contribute to actions that promote development while making it easy for nonprofit development organizations to raise funds, Kumar said.

However, the financial instability caused by the pandemic has also had an impact on philanthropic behavior: the report says those worried about financial security were twice as likely to have stopped giving regularly as others.

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