Online giving still represents less than 10% of total revenue: Research

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Published: September 10, 2015 12:30 PM

Recent online giving trends and studies have revealed that nearly 80 per cent of donations raised by NGOs are still collected offline as there is more number of older donors than young.

Recent online giving trends and studies have revealed that nearly 80 per cent of donations raised by NGOs are still collected offline as there is more number of older donors than young. When it comes to raising money for a cause, older donors still dominate the zone and they prefer giving more offline than on.

A recent study titled titled ‘Online Giving in India – Insights to improve results’ by not-for-profit organisation Charities Aid Foundation (CAF) India has revealed that online donations represent less than 10 per cent of the total revenues amongst the NGOs working in India.

The research report also revealed that 20 per cent of all giving in India will occur online within the next two years and 50 per cent within the next ten years, indicating a gradual but conservative increase in giving through online medium in India.

CAF India, which is committed to nurturing the culture of giving and has been devising innovative strategies to enable companies on their strategic CSR investments, had partnered with Ethica Strategy, an international consultancy that works to help advance social and environmental sustainability, to conduct the survey amongst 30 non-governmental organisations (NGOs) to find out online giving trends across the country.

Meenakhsi Batra, CEO, CAF India said, “Over the recent decades, the giving landscape has undergone great change. Online donations have gradually paved their way into the giving scenario and have become an intrinsic part of the life-changing work done by NGOs. This report, envisaged as a pilot study, focusing on the online giving landscape in India, represents a critical first step to collecting information on digital trends/practices in the sector. The second phase of the report will cover online giving from the donors’ point of view. ’’

At least two-thirds of the respondents interviewed indicated that in their view Indian NGOs are “not very well equipped” to take advantage of digital platforms to raise funds.The ability to measure and track a campaign and its results is far more precise for online fundraising activities than for offline ones.

Peter Weeme, Founder, Ethica Strategy said, “The report yields a number of interesting and useful insights that offer the highest opportunities to drive results and impact for online giving in India. It will prove to be a valuable tool to a broad array of NGOs and can be a valuable contribution to building the capacity of the sector.”
With the rapid change in technology, fundraising trends in India have also been changing at a fast pace. As more and more tech-savy individuals with more disposable income come of age, the rate of online giving will see a rise.

According to the study conducted by CAF India, online donors are easier and less resource intensive to track, thank, keep informed and re-approach for future donations.

The consolidated insights from the research report, released at the Annual National Consultation of Voluntary Development Organizations’ event organized by VANI (Voluntary Action Network India), address the motives, challenges and successes of online fundraising, making way for the NGO sector to thrive in the digital age.

“The CAF India report on Online Giving provides a vision for fundraising through online means as an emerging space for the sector to connect with its donors. For VANI, it is an interesting initiative by CAF India and we would like to see this process evolve into concrete actions and result,” said Harsh Jaitli, CEO, VANI.

Charities Aid Foundation (CAF) India is a not-for-profit organisation working to make giving more effective and NGOs more successful. Established in 1998, CAF India’s vision is to build a society motivated to give ever more effectively and help transform lives and communities.

CAF India’s wide range of ‘giving’ solutions includes delivering on the CSR commitments of partners, grant management, CSR strategy development, programme management, payroll giving, individual giving, capacity building, disaster support, employee engagement, and volunteering and communication advocacy, tailored to meet their business objectives.

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