The Dos and Don'ts of Donating to Charities

In today's digital age, while most charity fundraising is genuine, fraudsters and criminals sometimes take advantage of public generosity. Fraudsters adeptly employ social engineering techniques to deceive vulnerable individuals. Tactics such as deceptive links or QR codes in emails and social media can expose users to fake websites that steal personal information.

Recent data reveals a significant rise in fraud losses over the past year, with cyber-related frauds topping the list. For instance, the Indian Cyber Crime Coordination Centre (I4C) reported that in the first four months of 2024, Indians lost over Rs 1,750 crore to cybercriminals, reflecting a 113.7% increase from 2021-2023 and a 60.9% rise from 2022-2023. Notably, 85% of these complaints were financially related.

Given this alarming trend, it's crucial to stay informed and cautious when donating to charities. This blog will provide you with an understanding of the Scale of Philanthropic Needs in India and essential dos and don'ts to ensure your contributions make a positive impact without falling into the hands of fraudsters.

Role of Philanthropy in India

Before delving into the nuances of donating, it's important to recognise why philanthropy matters. Apart from the feel-good factor of generosity, philanthropy carries significant socio-economic implications. For instance, A survey revealed that "Feeding America," a major US charity, raised over $4 billion in 2022. In contrast, India's largest similar organisation raised just $0.07 billion. This stark difference highlights the immense need in India.

According to a report by NITI Aayog, India needs to allocate approximately 13% of its GDP to social causes by 2030 to fulfil its commitments to the United Nations Sustainable Development Goals (SDGs). However, the country only spends around 8.3% of its GDP on these initiatives and thus falls short of these global targets. This shortage hampers efforts to achieve objectives such as eliminating poverty, providing education and healthcare for all, promoting gender equality, and addressing climate change.

Despite fraud risks, boosting philanthropic efforts alongside government initiatives is vital for tackling India's social and economic challenges. Closing this funding gap is crucial for enhancing millions of Indians' lives. Bridging India's philanthropic deficit demands collective action. Supporting trusted organisations enables individuals to foster sustainable development and inclusive growth nationwide.

Dos and Don'ts for Charitable Giving in a Nutshell

When donating, it's important to do so wisely and cautiously. Choose reputable organisations and trusted platforms to ensure your contributions are used effectively. Be vigilant against potential scams to protect both your intentions and the impact of your generosity. We have listed some guidelines for you:

Category	Do	Don’t
Before Donating	Research the Charity: Search the charity's name with keywords like "complaint" or "scam" to ensure legitimacy.	Use Risky Payment Methods: Avoid wire transfers, gift cards, or cryptocurrencies.  Don't give your card data/ passwords/OTPs upfront.
Verify Payment Security: Ensure the website uses "https://" and has a padlock symbol.
Download the official UPI app from trusted sources like Google Play Store or Apple App Store.	Avoid downloading UPI apps from WhatsApp or SMS to protect your device from potential risks
Use Safe Payment Methods: Opt for credit cards or checks, which are traceable.	Do NOT share CVV number or OTP with anyone
Check the receiver's name when verifying the UPI ID.	Do NOT share UPI PIN with anyone
After Donating	Keep your UPI app updated to leverage the latest security patches and enhancements.	Don’t trust the caller ID applications. Just because someone knows your name doesn't mean they are genuine. Technology makes it easy for scammers to fake caller ID information.
Monitor Your Accounts: Check bank and credit card statements for accuracy.	Ignore Irregularities: Act promptly if you notice unexpected charges or suspect fraud
Keep Records: Maintain donation records for tax purposes and tracking.
Avoiding Scams	Take Your Time: Verify the charity’s legitimacy and research their use of donations. |	Fall for Pressure T tactics: Avoid rushing into donations due to urgent appeals.
Social Media & Crowd Funding	Be Cautious: Verify independently. Donate through trusted platforms or directly to known individuals.	Assume Legitimacy: Don't trust posts solely based on social media appearances.
Donating Goods	Research Use: Sometimes, the gifts-in-kind can be large ticket items, like a car or medical equipment that’s not being used. Ensure the charity uses donated items properly and transparently.	Overlook Red Flags: Avoid charities with excessive overhead costs or those that overstate the value of donated goods.

By following these guidelines, you can donate confidently, knowing your generosity will positively impact and help those in need. Stay informed and cautious to protect yourself from scams and ensure your charitable contributions make a meaningful difference. At Generous Hands, we connect compassionate donors with needy charities. Join us to find the charity that speaks to you. Happy Giving!