Anirudh Chandrakant

Jul 13

Why Don't We Donate?

[There were too many anchors littering the text; moved all the links to the bottom]

Giving is a neglected industry in the world. The United States is at the forefront and yet, the annual donation is about 0.02% of the GDP[1]; other nations are worse. To put it in perspective, for every Rs.50,000, the most generous amongst us donate Rs.10. Are we inherently uncaring and inhumane? Or is there a deeper problem?

People don't give unless someone asks them to. Inherently, we think about our needs first and most of us are unsure if the money we have will fulfill them. More importantly, it is difficult to seek out an organization that has a cause that we specifically identify with[2] and to which we can donate consistently. So, very few people are proactive about donating - either time or money. Furthermore, only about 4% of the NGO websites talk about what they do with the money that people donate[3]. This lack of clear transparency demotivates a lot of people from contributing to a cause because they are unsure about whether their time and money is actually making any difference.

Think about this - what the last NGO campaign you can remember? I can think of the 'Jaago Re' and the 'Teach India' campaigns[4]. Nothing else stands out or even comes to mind. There are estimated to be nearly 2 million registered NGOs in India alone[5], and almost none of them stand out. To the average person, one is indistinguishable from another. In a recent study[6], a group of people were asked if they donated to the American Cancer Association. 34% of them said that they had, whereas only 14% had actually done it. They weren't lying; they had donated to some cancer association, they just didn't remember which one. An NGO does not think about brand building like a normal corporate does. It is either taboo or there aren't sufficient funds. But, there are many examples[7] of NGOs taking a huge leap by using simple, cost-effective marketing strategies. It only takes a little innovating thinking.

Most NGOs ask for money too early. It is important to first establish a trust relationship with a potential donor before asking for money. Several experiments[8] have confirmed the theory and state that a simple act of asking for time just before asking for money can make a significant difference in perception and in effect, the amount of money donated.

A lot of NGOs lack clear vision or their goals are too small and too insignificant to make any difference in the world. While they believe that they are being nobel, it is hard to convince a huge group of people about it and hence, get any significant time or money in return. It is important to be remarkable[9], have strong leadership, question long held assumptions and set out to make a dent in the universe. Most NGOs think too small and are satiated too soon.

Having said all this, the curious might be wondering why is giving important? It is, of course, a very selfish reason - the most important factor to personal happiness is the act of giving to others[10]. This simple act makes one happier than anything else, and the more we give (either time or money), the happier we are. This is probably why there is so much unhappiness in the world. Also, it doesn't hurt to make someone else happy once in a while.