By Sajju Jain, Board Member | Entrepreneur | Harvard Alum
Technology has been ubiquitous in shaping our lives. It has impacted every aspect of our lives, from how we communicate to how we shop. It has also helped us help others – to express our generosity, especially to those suffering and with urgent need of assistance. Philanthropy has been a great beneficiary of technology’s unrelenting march. Here is a quick review of some of the major changes enabled by technology in the last 30 years and a sneak peak into changes coming down the line in the near future in India’s philanthropic universe.
Online crowdfunding platforms: The beginning of the new era of fundraising
It will surprise many that crowdfunding is ancient. There are several documented instances in ancient India of the entire kingdom contributing to the construction of temples and religious monuments, like when the monolith statue of Bahubali at Shravanabelagola was built around 981 CE, over 1000 years ago.
The advent of the internet kicked off the modern era of crowdfunding. The first documented case was in 1997 when over one thousand fans of a British band, Marillion, raised $60,000 to fund their US tour. In 2003, ArtistShare became the world’s first commercial crowdfunding website.
In India, the rise of online platforms like Milaap, Ketto, and ImpactGuru has made it easier than ever for people from across the country to donate to causes they care about. Today, both individuals and organisations raise funds for causes ranging from healthcare and education to disaster relief on these platforms.
Milaap, one of India’s leading crowdfunding platforms, has reported that they’ve raised over Rs. 1,000 crore through online donations since its inception in 2010, benefiting millions of people across the country.
The emergence of social media has also helped transform how causes are promoted and supported. Platforms like Facebook, X (formerly Twitter), and Instagram have become powerful tools for raising awareness and mobilising support.
For example, the Ice Bucket Challenge, which started abroad, gained traction in India, raising both awareness and funds for amyotrophic lateral sclerosis (ALS). Similarly, during the 2018 Kerala floods, social media campaigns quickly galvanized public sentiment, helping to raise millions in relief funds within days. By leveraging the power of social media, these platforms reach vast audiences, turning even small contributions into significant support for those in need.
The Smartphone and UPI Revolution: Simplifying and enabling micro donations
With the advent of cheap smartphones and cellular data in the 2010s, India’s access to the internet exploded. India’s internet user base grew from 100 million in 2010 to 400 million by 2015 and crossed 600 million in 2020, according to the Internet and Mobile Association of India.
The introduction of the Unified Payments Interface (UPI) by the National Payments Corporation of India (NPCI) in 2016 revolutionised digital transactions in India. According to data from the NPCI, 12.20 billion UPI transactions worth ₹18.41 lakh crore (equivalent to $222.17 billion) were processed in January 2024.
Both these technologies are making charitable donations almost instantaneous and hassle-free. Today, more and more charitable organisations and religious institutions integrate UPI into their systems and using apps like BHIM, Google Pay, and PhonePe, making donations has become seamless, particularly during emergencies such as the recent COVID-19 pandemic.
Both these technologies have also facilitated micro-donations, where small contributions from many individuals can help create significant impact. An organisation like Sewa Bharat can receive donations of as small as Rs.10, making philanthropy accessible to people across all economic backgrounds. Mobile technologies are enabling Indians to engage in charitable activities almost effortlessly.
Blockchain, VR/AR, and AI: Ensuring transparency, trust, and optimisation
Now that we’ve looked into the past, let’s take a look into the future as well. One of the more promising applications of blockchain technology is as a tool for enhancing transparency and accountability in charitable giving. Blockchain is a digital encrypted decentralised ledger that can ensure that donations are tracked and used as intended, minimising the risk of fraud and mismanagement.
Virtual and augmented reality (VR/AR) technologies are being used to create immersive experiences that can connect potential donors more deeply with their causes. By virtually transporting potential donors to an affected area or showcasing the impact of their donations in distant locations, these technologies can evoke deeper empathy and encourage more generous contributions.
Our final technology and the latest trend is Artificial Intelligence (AI) and the more effective data analytics it enables. AI can help donors and organisations make informed decisions by identifying areas of greatest need and also better predict the outcomes of philanthropic initiatives. AI-powered tools can evaluate the impact of past projects, optimise resource allocation, as well as personalise donor engagement strategies.
For instance, the Tata Trusts’ Data-Driven Governance (DDG) portfolio is being used to strengthen rural and urban decision systems through the use of data. The Trusts have been providing functional and technical support to governments for carrying out data-intensive planning as a means to supplement decision-making.
Conclusion:
Technology has undeniably transformed philanthropy in India, making it more inclusive, efficient, and transparent. By lowering barriers to giving, it enables individuals from all walks of life to contribute to societal betterment. As technological advancements continue, we can expect further innovations that will amplify the impact of charitable efforts, fostering a more compassionate and supportive society.
