Understanding Why Indians Hesitate to Donate to Charities

We often discuss the upsides of giving to charities—doing a good deed, uplifting people around you, being selfless and kind, and creating better opportunities. Despite the positives, why do people choose not to give/donate to non-profits? That’s something to think about, and here we are to get to the bottom of the reasons.

7 Reasons Why People Don’t Donate to Non-profits

The reasons why someone doesn’t donate can be social, economic, political, and psychological, but here are the most common ones:

1) It’s the government’s responsibility

It’s a common belief that once you pay your taxes, the government should take care of social welfare funding. However, the budget for social sector spending stood at 18% in 2023-24, marking a decline for the first time from 20% since 2009. This budget funds rural development, education, health, women, and child welfare, among other areas. The landscape that needs development support in India is much wider than what can be covered by government funds, and that’s where non-profits come in to help. The social welfare sector cannot make the difference that we need without individuals and the private sector pitching in with their contributions and CSR donations. Non-profits, focusing solely on social welfare, serve as a helping hand for the government, encouraging citizens to donate while maintaining complete transparency about their impact.

2) Donating creates dependency

Many believe that donating to an underserved sector creates dependency, with the beneficiaries refusing to put in effort to improve their situation. However, nonprofits today have shifted their approach from merely addressing immediate issues to working on holistic and constructive giving models that empower individuals. At GfG, we have witnessed the transformative impact of giving, observing people donating school supplies to underserved children. This helps them build a life through quality education, overcoming initial obstacles that we often take for granted in our own children. These donations are aimed at equipping them with the capabilities to learn, grow, and lift themselves out of their current situation, thus avoiding dependency and contributing to a skilled population.

3) If it doesn’t affect me, it’s not my problem

It is only human nature to take action toward something that directly affects our day-to-day lives. However, if we believe that social issues like poverty, poor education, and a lack of skill development are not our problems, we’d be wrong; these issues affect us all. The more people who are left in poverty, the more aid is required to help them. Unemployment rates increase because there aren’t enough skilled people, leading to a weaker economy. India has only explored a percentage of its potential, and not empowering our unexplored sectors puts our future at great risk.

4) One donation can’t make much difference

Did you know that Indians donated over Rs 23,700 crores in 2020-21? Now, that sum did not come from one or two people; it came from millions of Indian citizens who decided to donate a small amount to make such a significant contribution. So, even if the donation seems small, it accumulates for a bigger cause. Non-profits don’t expect you to empty your pockets to save a life. They provide you with an opportunity to uplift a life that deserves a chance at a brighter future.

5) I need to save my money

Savings are essential for a secure life, so it is understandable why one might choose them over giving money to charity. However, here's a fun fact about donating to non-profits: it can save you money in the form of tax deductions. The money that you would normally pay as taxes can be redeemed if you donate to an 80G certified non-profit. You can be eligible for a deduction ranging from 50% to even 100% of your donation, which means you save more money! So, donating makes managing your savings easier.

6) I don’t have time to donate regularly

Sometimes, you have everything you need to donate: the motivation, the awareness, and the heart. However, you may find yourself donating once and lacking the time to do so again. We understand the struggles of a busy life. Non-profits can solve that for you too. While caught up in a busy schedule, monthly online donations become your ideal choice. It's akin to a Netflix subscription, but with a significant difference—you are changing a life, and you can freely share your experience with more people, with no restrictions. In fact, it’s encouraged!

7) I’m not sure if my money reaches the right people

This is a valid concern. If you are donating to a cause you care about, you want your contribution to reach the intended recipients. You can address this concern by researching the non-profit you choose to support. The right non-profit is transparent and accountable for all donations, impacts, and financial reports, making them publicly available for your access. So, never hesitate to ask for transparency or pose any questions you have about the donations.

Understanding the reasons behind hesitations to donate is crucial to fostering a culture of giving in India. At GfG, we welcome such questions and aim to dispel myths about giving, leaving no one behind in this journey of change and kindness. It’s never too late to start being kind! Begin by sponsoring one child’s school supplies and lead the chain of change.

Exclusively written for Giving for Good Foundation by Bhairavi Hiremath

Sources:

https://theprint.in/india/indians-donated-rs-23700-cr-in-2020-21-middle-class-gave-most-faith-groups-got-most-study-says/1134654/

https://www.indiaspend.com/budget/budget2023-infrastructure-spending-grows-but-at-the-expense-of-social-sector-spending-851553

https://www.charitylink.net/blog/why-dont-people-give-to-charity-ten-reasons-for-not-donating

https://www.nptechforgood.com/2020/10/18/6-reasons-why-people-do-not-donate-money-to-charity/