India's nonprofits turn to 'everyday giving' amid funding crunch: Report

New Delhi: With the tightening of institutional and foreign funding, Indian nonprofits are increasingly relying on "everyday giving" -- small, regular contributions of money, time, and skills from ordinary citizens -- to sustain operations and deepen community ties, according to a new study.

The 'UDARTA: Everyday Giving (EG) Report 2025' has been developed by 13 social sector organisations and guided by more than 50 others and is India's collaborative research effort on how nonprofits are leveraging citizen philanthropy.

Jointly funded by GivingTuesday and Rohini Nilekani Philanthropies, the study surveyed 304 nonprofits across 26 states, ranging from small grassroots groups to large institutions with annual budgets exceeding Rs 100 crore.

The report finds that donations from everyday givers already make up around one-third of nonprofit funding, and 96 per cent of organisations engaged in such fundraising found it worthwhile.

Everyday giving also helps nonprofits secure unrestricted funds -- vital for meeting operational needs, emergencies, or new initiatives -- at a time when institutional funding is becoming more restrictive.

"Everyday giving brings more than just money -- it builds community, increases visibility, and creates authentic, long-term support," the report notes.

It emphasised that smaller, community-rooted organisations are using everyday giving to build resilience and local ownership amid the tightening flow of traditional funding.

Among the key takeaways, the report found that everyday giving is viable for all types of nonprofits, regardless of size, age, or cause.

Nonprofits that use simple technology tools such as website donation buttons or WhatsApp campaigns raise significantly more and retain donors better, it said.

However, retention remains a major challenge, with nearly half of the organisations lacking structured strategies to keep donors engaged.

The study revealed that friends, family, and volunteer networks are the most effective channels for reaching new supporters, while generic digital campaigns and door-to-door drives yield weaker results.

Nonprofits that align fundraising campaigns with festivals or giving days such as Daan Utsav or GivingTuesday report higher engagement, tapping into culturally resonant moments when people are most inclined to give.

Another insight from the study is that strategic investment in training and fundraising capacity substantially improves results.

Organisations that train their teams for individual fundraising and allocate budgets for community engagement see higher donations and recurring support. Conversely, nonprofits relying solely on crisis-based fundraising experience only experience short-term spikes in contributions.

The report also highlighted that while 86 per cent of nonprofits engage volunteers and 79 per cent receive donations from individuals, only 37 per cent have systematic strategies to cultivate and retain everyday givers.

Most nonprofits still operate on an "as-needed" basis, reaching out only during emergencies or festive periods.

Retention, the report warns, is a major missed opportunity.

Donor follow-up practices such as personalised thank-you messages or sharing impact updates can increase repeat donations by up to 20 per cent.

"Donor fatigue is often really message fatigue," the authors observe, urging nonprofits to personalise communication through data-driven segmentation rather than sending generic appeals.

The report said everyday giving is a powerful yet underused resource that can help build a more resilient and community-rooted social sector in India.