Who is the biggest beneficiary of Indian household donations? What is the factor that motivates households to make such donations? What is the total amount of donations that Indians make? What about average donations per household? Has the pandemic changed the way households donate in India? A report from the Center for Social Impact and Philanthropy (CSIP) at Ashoka University has prepared estimates of Indian household giving. It is based on telephone and face-to-face surveys conducted in April 2021 (first phase) and October 2021 (second phase) and has a sample of approximately 81,000 households. Here are five tables that explain this.
How much do Indian households give?
The report estimates total giving in India by households – this does not include corporate philanthropy – between October 2020 and September 2021 at around ₹23,700 crore. If one were to compare this with India’s GDP (in current prices for the quarters concerned), it amounts to 0.11%. In relation to final private consumption expenditure, this share is approximately 0.18%.
What about average donations from Indian households? The report puts that number at ₹524 between October 2020 and March 2021, and ₹507 between April 2021 and September 2021. Admittedly, the value of these donations varies among different recipients, with extended family, friends and staff receiving the largest average donations.
See Graph 1: Average cash donation by a household to different groups
Who is most likely to receive donations?
Religious organizations are the main recipients of donations from Indian households, both in terms of frequency of donations and share in total donations. While donations to beggars rank second in frequency of donations, their share of total donations is significantly lower, suggesting that the average amount donated to religious organizations is much larger than what households donate. to beggars. Together, donations to religious organizations and beggars account for 80% of the total value of donations in India.
Overall, 29% of households that donated to non-religious organizations also disclosed the name of the organizations. From these responses, it was found that out of 10 of these donations, five were received by NGOs, trusts, foundations and schools; and two by PM CARES/CM CARES/Unicef.
See Chart 2: Incidence and Share of Total Donation Value
What motivates an average Indian to donate?
As for the two main recipients of household donations, religious belief is the main motivation, followed closely by adherence to family tradition. With regard to donations to household staff and extended family, and the category of friends and staff of recipients – the average donation here is significantly higher than in the case of religious organizations and beggars – the intention to supporting a person in financial difficulty is the main motivation. for donations. What is remarkable is that the tax saving is an almost negligible factor for Indian households who donate. Of the 17% of households that did not report making donations in the survey (in phase two), 31% said no one had approached them, while 37% did not have the resources to make donations. donations.
See Chart 3: Motivations for giving at the household level in India
How is the donation provided?
During the study period, cash donations were preferred in both urban and rural areas, with over 90% of households contributing cash. The incidence of in-kind donations was higher in rural households (50%) than in urban households (30%). Volunteering has become the least popular form of altruism in India. Only 2% of respondents said they had “volunteered” for their services in urban areas compared to only 1% in rural areas.
The survey also provided deeper insights into how information channels influence the form of donations. For this, household responses were sought for two categories of recipients – religious and non-religious organizations. For both groups, “in-person outreach by volunteers or agents” and “face-to-face interaction with the recipient” emerged as key to influencing household donations. Specific to non-religious organizations, television also emerged as an important means of soliciting donations.
How have giving habits been affected during Covid-19?
The second phase of the investigation referred to the period from April 2021 to September 2021. This precisely coincided with the second wave of the Covid-19 pandemic that had devastated the country. During this period, the share of donations motivated by Covid-19 relief measures also increased significantly. This increase was mostly reported to non-religious organizations. In contrast, the first phase of the survey, which overlapped with the period immediately after the first lockdown, saw more donations made to known people such as household staff or extended family members.