India has a long-standing tradition of giving, deeply embedded in our cultural and spiritual ethos. From ancient practices of daan (charity) and seva (service) to modern-day philanthropy, individual giving is intrinsic to our social fabric, with 84% of Indian households reporting that they contribute to charitable causes. A majority of this giving is directed towards religious causes, followed by direct aid to the needy (for example, giving to beggars) (How India Gives, 2021, Centre for Social Impact and Philanthropy, Ashoka University). However, over the years, there has been an increase in individual donations to nonprofits, with 20% of all individual donations being made towards nonprofits in 2021. Individual giving amounts to nearly ₹23,700 crore annually, a substantial portion of India’s philanthropic landscape (Everyday Giving Report, 2021, Sattva). In this context, the true potential of this form of giving, called retail giving, is yet to be fully realised by the social sector as nonprofits tend to rely heavily on institutional and corporate funding. 60% of survey respondents administered to The ILSS Fundraising Program alumni reported no retail funds raised.
“Amidst resource constraints, nonprofits often undervalue individual donors due to challenges in accessing, converting, and engaging them.”
Regularly accessing, converting and engaging individual donors amidst resource constraints are primary challenges for nonprofit organisations, leading them to undervalue this channel of giving. However, the advantages of individual donations are too high to not address these challenges. Cultivating individual donors is worthwhile as they largely provide broad-based support which allows nonprofits to grow, adapt, and maintain the autonomy necessary to pursue their mission without the constraints that sometimes accompany large-scale institutional grants. Secondly, decision-making is faster for individual donors than for institutional funders. Finally, if an individual donor converts to a champion of your work, the giving can potentially be multigenerational.
Around 31% of surveyed households in CSIP’s How India Gives report indicated ‘nobody approached for support’ as the reason for not giving. This is an indicator that better awareness is key to unlocking more individual donations for the sector. Digital platforms like email, social media, and WhatsApp can help unlock individual giving by providing easy access to potential donors. Most people likely to give are already online, making it easier to reach, engage, and inspire contributions. With some investment in marketing, organisations can build visibility for their work, circumventing their challenges around access and engagement.
Collective Fundraising
A golden opportunity for organisations to catalyse individual giving is by leveraging structured giving campaigns open to the social sector at large. These are usually positioned around ‘giving moments’ or culturally and socially relevant occasions when people are primed to give. In India, Daan Utsav (the Joy of Giving Week), celebrated from 2 to 8 October every year, has become a major national movement for giving. Whether it’s individuals donating to their favourite cause or entire communities participating in acts of kindness, the week encourages people to give, volunteer, and support social causes in diverse ways. Similarly, global movements like Giving Tuesday have gained traction in India. GivingTuesday is held annually between 27 November and 3 December, five days after the Thanksgiving holiday in the US and has been able to mobilise USD 13 billion since its launch in 2012.
These moments tap into a collective spirit of generosity, amplifying participation and making it easier for nonprofits to engage new donors. They act as powerful levers for mobilising widespread support and present a crucial opportunity for nonprofits to build awareness, create emotional connections, and encourage first-time donors to step forward.
Most importantly, these are resource-efficient ways for organisations to reach a large number of people to build visibility and raise funds for their cause. These campaigns provide centralised resources for marketing which reduces individual marketing costs for participating organisations. They also streamline the planning and execution of the campaign, informed by best practices from previous campaigns, reducing efforts towards this.
Crafting Communication to Encourage Giving
“Individual giving is largely driven by the desire to give back or ease guilt.”
Individual giving is driven by personal motivations primary among them being the desire to give back or consciousness of guilt. To effectively engage people in giving, particularly during moments like Daan Utsav or Giving Tuesday, nonprofits must appeal to both the emotions and the subconscious inclinations that drive decision-making.
Driving Emotional Engagement
“Authentic, transparent communication about how funds are spent is key to inspiring trust, a crucial factor in driving donations.”
Science shows that the decision to donate is primarily emotional with people more likely to act when emotionally engaged. This can be achieved through compelling storytelling. Research indicates that people are twice as likely to donate to an identifiable individual than to abstract figures, making this approach particularly effective. Emotion-driven storytelling around transformative change resonates more deeply than statistics alone. For example, the #HelpIndiaBreathe campaign, which focused on providing oxygen support during the COVID-19 crisis, successfully used emotional storytelling to highlight the urgent needs of patients, driving significant donor engagement. Finally, your communication must be authentic and transparent in informing the audience on how their money will be spent. The ability to inspire trust has been found to be most important to determine giving.
Anchoring Your Ask
When creating donor asks, it’s important to think carefully about structuring the ask for donations. One useful consideration is the ‘Goldilocks effect’, which refers to the tendency people have to choose a middle option when given several choices. In simple terms, donors are likely to pick an amount that feels ‘just right’ — not too small or too large. For example, if you offer options like ₹100, ₹150, and ₹300, many will choose ₹150. Keeping this in mind, it can be useful to share the average amount donated by an individual. People are sensitive to information about the generosity of others and are likely to donate amounts in the same ballpark.
Utilising Aversion to Loss
Emphasising the tax benefits people might miss out on if they don’t act can trigger a natural aversion to loss, encouraging them to make a donation. This approach has been heavily used in creatives by CRY (Child Rights and You), emphasising the financial advantages of giving, particularly at the end of the financial year.
Leveraging Social Proof
Offline, people are more likely to add to a non-empty donation box than an empty one. Similarly, people are more likely to give online if they see other people giving. Testimonials from people genuinely invested in the mission resonate deeply with the audience. This helps people feel a sense of belonging with a community of givers encouraging them to join in. Testimonials from past donors, influencers, or celebrities can also be useful. While selecting public figures for endorsing a cause, it is essential to ensure that their presence lends credibility to the work and there is authentic alignment between the individual’s motivation and your cause. The US-based Society for Nonprofits provides research-based tips and traps to ensure the effectiveness of celebrity endorsements.
Also Read: Storytelling for Fundraising
In conclusion, unlocking the potential of individual giving is not just an opportunity for the social sector—it is an imperative. As India’s philanthropic landscape evolves, nonprofits must move beyond traditional funding channels and embrace strategies that tap into the vast pool of individual donors. Organisations that have never run fundraising campaigns can start with collective platforms which provide the required structure. These platforms are also critical for the sector at large to accelerate the transition of this channel of giving from informal to formal. In the long term, this focus can transform individual giving into a powerful, sustainable source of support that fuels the social sector and drives long-term impact.
