What Questions You Need to Ask Before You Make a Donation?

The 21st century is over brimming with advertisements. We as individuals are persuaded, coaxed and convinced to buy what we see. Marketers also continuously target people based on Artificial Intelligence  and Big Data to understand customer preference, and solve their pain points. But when it comes to charity, the transaction goes beyond the optics of buying and selling. For example, poverty and unemployment can be both visible and invisible at the same time. There are always two sides of the same coin, and it is up to us to decide which side we want to see and which side we want to overlook. The role of a dice isn’t so simple in case of charity, an empowered donor is also one who is not only aware of his rights, but asks the right questions before making donations. 

Scepticism and concern can often interfere with our inherent desire to help. However, a transparent mechanism that creates accountability eases the decision making process for donors and helps to build credibility for the NGOs. While credibility is one aspect, here’s a guide that will help you (donor) to ask the right question before you decide to donate. 

1. Objectivity – As established before, charity goes beyond the optics of monetary transaction, but it is important to understand and ask ‘How the funds will be utilised?’ Every NGO is accountable to its donors, and donors should make it a point to fully understand how the funds will be funnelled and what activities will it serve.  

2. Do the issues fit? – Each one of us are driven by a cause, which sometimes stem from our own experiences or shared experiences of loved ones, colleagues, friends or are driven by nationalistic or conservation fervour. There are numerous examples of youth leaders, who turned into activists after realising the need of hour in a particular domain, be it health care, environment or mental health. As donors, one should also question the objectivity of the issues and how will the outcome fit the larger paradigm of sustainable change.  Having said that, one should be first willing to give for an issue and then to an organisation, based on shared visions and values of the organisation.  

3. Do the values fit?-  You should give to the charities that best fit your values and priorities in terms of how they work, where they work, and what they work on?

4. At what level do they operate?-NGOs in India work at different levels – grassroot, regional, national or international. It is the prerogative of the donor to understand at what level they want to see an impact. 

5. Tax benefits- Section 80-G of the Income Tax Act in India allows donations made to specified charitable institutions like IndiaDonates, to be deducted from the taxpayer's gross total income before arriving at taxable income. As of February 2020 and applicable from 1st April 2021, the Act has been amended to ensure more transparency on the part of the NGOs. This deduction can be claimed by any taxpayer – individuals, company, firm or any other person. Before one makes a donation, they should also always ask if a particular organisation has 80G registration and how can they claim the same, after donation. 

The ins and outs of choosing a non-profit organization to donate to can be a daunting process. When it comes to supporting and allowing society to grow, we all want to fund things that work. We all want to be generous in giving to fight different causes, but as we do, we also want to make sure that our donation (however big or small) should really make a difference.

INDIAdonates provides this critical piece of assurance by ensuring accountability, transparency, objectivity, reporting-back mechanism and providing tax exemption. In our intent to spread happiness through small acts of charity, INDIAdonates also makes sure to on-board credible organisations on its platform through a thorough due-diligence process. INDIAdonates believes that with each donation a donor places their trust on them and also on its partners. Your donation is more than a vote of confidence: It’s something that helps keep non-profits alive. Financial support is essential to non-profits because donations are what keep them running—and their mission at the forefront. 

Sarwesh Singh, is an intern with INDIAdonates, and is currently pursuing his bachelors on International Relations at University of Exeter, England. He has a keen interest in development issues and intends to apply economics and analytics to solve some of the most pressing social issues.