Esaar: Micro-donations platform for emerging markets

Mahad Ahmad

Product Researcher
UX Designer
Web Developer
JavaScript
React
Strapi

1. Introduction

Pakistan stands out for its philanthropy, contributing more than 1% of its GDP to charity
Pakistanis donate PKR 240 billion annually, favoring personal giving over formal organizations
Source: The State of Individual Philanthropy in Pakistan. (2016). Retrieved from http://www.pcp.org.pk/uploads/nationalstudy.pdf.

2. Thesis Statement

💡 Increasing Organizational Givings Among Literate Millennials In Pakistan

3. Research Sample

Donor Demographics
Donor Demographics
Charity Organizations' Demographics
Charity Organizations' Demographics

4. Findings

Insights into Donor Preferences for Charity Organizations

Donors express a significant need for trust and transparency when considering donations to organizations. Key issues include:
Transparency as Trust Builder: Donors emphasize the necessity of transparency for trust-building, indicating a preference for organizations that provide clear, transparent communication about their financial practices and the impact of donations.
Credibility of Updates: Official websites are viewed as more credible than social media for updates on the organization's activities and fund usage.
Need for Audit Reports: A common concern is the absence of publicly available audit reports, which impacts perceived transparency and trustworthiness.
Tracking Donations: Donors value the ability to track their donations from receipt to utilization, with a preference for organizations that offer detailed reports on the use of funds.
Defined Vision and Impact: Organizations are expected to clearly define their mission and demonstrate tangible impacts, ensuring donors that their contributions are making a difference.
Open Door Policy and Engagement: An open-door policy for donor visits and regular communication, such as newsletters, helps keep donors engaged and builds trust.
Registered Organizations: Registration with government authorities is a key factor that influences donor trust, as it suggests accountability and legitimacy.
Alignment with Donor's Cause: Donors are more likely to support organizations whose causes align with their personal motivations.
Concerns over Misuse of Funds: Rumors or instances of organizations misusing funds for unintended purposes, like terror financing, strongly deter donations.
Community-Based Giving Preferences: Some donors prefer giving to local community structures, like mosques or committees, perceiving them to be more directly effective and transparent.
Operating Costs Scrutiny: Organizations with high operating costs face skepticism about the efficient use of donations.
Preference for Direct Assistance: Islamic teachings influence some donors to give priority to direct aid to individuals, particularly those within their social circle or relatives.
Support for State-Managed Systems: There's a preference for a government-managed system for collecting and distributing donations, in line with Islamic principles.
Tendencies for Micro Donations: Smaller donations are preferred for individuals, while larger amounts may be channeled through organizations for greater impact.

Insights into Operations of Charity Organizations

Overview of Fundraising Efforts
Pakistani charities understand the need for strategic fundraising, with techniques varying by organizational size.
Specific campaigns often align with religious periods like Ramadan, tapping into heightened generosity.
Traditional Fundraising Approaches
Social Circles: Smaller NGOs lean on founder networks for donations, diminishing as they grow.
Word of Mouth: Across all sizes, sharing stories bolsters fundraising, occasionally leading to direct support or new volunteers.
In-Person Pitches: For substantial donations, direct meetings with business leaders are favored by larger organizations.
Campaigns and Volunteer Engagement
Awareness Campaigns: Used to inform donors and recruit volunteers, with materials like flexes signaling large-scale operations.
Volunteer Drives: Volunteers are pivotal, soliciting donations through direct community engagement.
Digital and Social Media Strategies
Digital Fundraising: Although widespread, it often yields lower donations compared to traditional means.
Social Media: Platforms like Facebook and Instagram keep donors engaged, but actual donation conversion is modest.
SEO and Online Ads: Predominantly a tool for larger NGOs to attract donations through their websites.
Transparency and Trust Building
Charities prioritize clear record-keeping and transparency, though they seldom publicize these details, potentially missing out on donor trust.
Millennial Donor Engagement
A notable segment over 40 years old dominates donor demographics, with millennials viewed as less serious donors due to different life priorities, affecting targeting strategies.

5. Design Recommendations

Transparent Communication

Regular Updates: Continuous progress reports are key for donor engagement.
Access to Official Information: Donors value the ability to verify an organization’s legitimacy through its official website and project history.

Trust Builders

Endorsements: Authentic endorsements from well-known entities boost trust.
Contact Points: Availability of a contact person within the organization is crucial for personal donor relations.

User Experience

Ease of Payment: A variety of payment methods should be offered for user convenience.
Simplicity: The platform should have an intuitive and straightforward interface.

Operational Integrity

Moderation: A third-party moderator should vet organizations to ensure credibility.
Privacy Considerations: Beneficiary privacy must be respected, with disclosures made only with consent.

Proactive Assurance

Project Histories: A list of past and ongoing projects provides transparency.
Assessment and Ratings: A system to assess and rate organizations can guide donors in their decision-making.

Cost Efficiency

No Platform Fees: The platform should operate without charging extra fees to ensure donations are fully allocated to causes.

Validation Mechanisms

Rigorous Screening: Strict screening mechanisms are necessary to maintain a trustworthy platform for donors and organizations alike.

Inspirational Elements

Religious Motivations: Displaying religious texts may encourage donations in a culturally relevant manner.

6. Proposed Solution

Centralized Information Aggregation

Unified Data Access: The proposed platform consolidates scattered information from various organizations into a single, manageable, and easily navigable interface, enhancing transparency for potential donors.

Micro Donation Facilitation

Small-scale Giving: Addressing millennials' preference for smaller donations and mobility limitations, the solution offers a micro donation system that simplifies giving minor amounts and allows for diversified donor engagement.

Increased Visibility for Small Organizations

Leveling the Playing Field: By algorithmically promoting smaller organizations based on project effectiveness rather than brand history, the platform aims to democratize visibility and support for these entities.
Top Trending Charity Organizations List
Top Trending Charity Organizations List

Donor Portfolio Management

Risk Diversification and Trust Building: This feature provides donors with the ability to distribute donations across various organizations, monitor project progress, and establish recurring support for those they trust, based on performance.
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