In the last few decades, the Indian middle class has undergone tremendous economic growth. With more and more people having disposable income at hand. This however, also means the disparity between those with disposable income and those with barely enough to survive, has increased a lot more. While corporate social activities, foreign funds, and government contributions still bring in the larger majority of development funds, individuals are becoming increasingly aware of the need to give back. In 2011, private donations brought in 15% of the funds, while the contribution as of 2016 were at 32%. Through this article, we’ll explore the factors that motivate the middle class to donate, and how this this translates into a crowdfunding India.
Tax benefits motivate donors
The middle-class, or anyone for that matter are always trying to find ways to reduce their tax burden in a legal way. What better way to do so, than by giving back to society? Most NGOs and crowdfunding India platforms offer their donors a chance to avail a tax exemption certificate under section 80G, when making a donation to a verified nonprofit. Whether your contribution is to a medical cause, for education, for the environment, or anything else, it is a great incentive to motivate people to get involved in charity.
The middle-class are god-fearing
Majority of the Indian middle-class are god-fearing individuals. Historically, religion has always been a crucial motivator for philanthropy and charity. Well before NGOs and nonprofits received the benefit of financial aid from philanthropic individuals and organizations, it’s the places of worship of all religions that were candidates of large donations. In the past, raising money in religious institutions like churches, mosques, synagogues etc, was the most popular and easiest way to raise money for a cause. It would almost always be successful, because religion has the power of persuasion like nothing else does.
In our previous blog articles we’ve discussed a number of ideas for rewards, that will encourage people to donate. It is the idea of getting something in return, that persuades or motivates people to do charity. This concept applies perfectly for the middle-class populations. NGOs and nonprofits must enhance their crowdfunding strategy to draw in support from middle-class communities.
An individual may be encouraged to donate to a cause if it is close to his heart, or if it is something that he/she has directly or indirectly experienced before. Some of the causes that the middle-class are most likely to empathize with include medical and educational campaigns.
Social responsibility of moral standing is another motivational factor. AN individual may feel it is his/her responsibility to give back to a society from which they have gained so much. Moreover, a person may donate keeping in mind their image in a community. People want to be associated to charitable causes because it creates a good image of them in society.
The Indian middle-class are an extremely important populations for the world of crowdfunding India, charity, and philanthropy. Nonprofits and NGOs have a lot to gain from tapping into this market.