Click to give: Future of digital fundraising in Sri Lanka

• Digital fundraising is gaining momentum in Sri Lanka
• Doing Good Index 2024 reveals level of digital technology adoption in Sri Lanka and 17 other Asian economies, among other indicators of philanthropic activities 
• Enhancing cybersecurity awareness, digital capacity development and improving existing digital infrastructure are key to promoting digital fundraising in country

The Suwaseriya Foundation, which hosts the 1990 free emergency ambulance service, recently raised Rs.1.2 million in donations through Karuna.lk, Sri Lanka’s first online fundraising platform.

This milestone reflects the growing trend of online fundraising and digital rallying for social welfare delivery in Sri Lanka. 

Much of these fundraising efforts occur through social media rather than standardised fundraising platforms. But with increased exposure to digital space comes increased risks to cybersecurity. In addition, social delivery organisations (SDOs) increasingly rely on digital tools to efficiently deliver vital social needs, manage their activities productively and increase organisational transparency. 

This article explores the potential, current status and challenges faced by SDOs in using digital technology, drawing evidence from the Doing Good Index (DGI) Survey 2024 by the Institute of Policy Studies of Sri Lanka (IPS) and Centre for Asian Philanthropy and Society (CAPS). The DGI examines the regulatory and societal environment in which private capital is directed towards doing good in Asia.

Leveraging social media for social welfare

The SDOs are organisations that use private capital to provide goods and services addressing societal needs. They can be either non-profit or for-profit. In Sri Lanka, many SDOs are classified as non-governmental organisations, though some, like the Suwaseriya Foundation, are affiliated with the government. The Sri Lankan SDOs operate primarily in areas such as community development, education, child and youth welfare and health.

Many of Sri Lanka’s social welfare delivery efforts occur through social media. The DGI 2024 survey found that 83 out of the 90 SDOs in Sri Lanka use Facebook for fundraising.

The user demographics of social media platforms vary. The average Facebook users are between 20-35 years old, with the average age for Asian Facebook users being 26 years old. This younger generation is more inclined to donate to causes that receive social recognition from their peers and organisations they trust and have a positive attitude towards. The survey indicates that 48 percent of the SDOs are confident that the public trusts their organisations and 58 percent of SDOs say that young people are more likely to engage in charitable activities than older generations.

Potential for digital advancement in SDOs of Sri Lanka

There is a lot of potential for using digital technology for activities by SDOs. Other than the use of social media for fundraising, the SDOs can leverage information and communication (ICT) tools to maintain records, facilitate donations, reach new donors and access information and opportunities online. The survey shows that around 99 percent of the SDOs use basic operational software such as Microsoft Office packages, surpassing the Asian average of 97 percent. However, only 40 percent of the interviewed SDOs use advanced tools like project management and accounting software compared to the Asian average of 50 percent. 

In contrast, 47 percent of the SDOs use advanced software for tasks like photo and video editing and statistical analysis, higher than the Asian average of 35 percent. Despite this, only 58 percent of local SDOs have operational websites, much lower than the regional average of 78 percent. Digital newsletters are maintained by 55 percent of the local SDOs, aligning with the Asian average.

While social media presence can amplify messages about welfare efforts to a broader audience, higher technological adoption can enhance the reach and efficiency of these organisations. However, increased ICT use also brings a heightened risk of cyberattacks. 

Cybersecurity concerns and digital usage

Sri Lanka Computer Emergency Readiness Team, under the National Centre for Cybersecurity, reported 64 active cybersecurity threats from January 01, 2024 to June 30, 2024. Among them, 34 were classified as high-risk alerts, implying the need for advanced cybersecurity measures in the SDOs’ digital systems. 

An important aspect of online fundraising is cybersecurity. Among the surveyed local SDOs, only 67 percent reported having cybersecurity plans in place. While only 12 percent reported experiencing cyberattacks within the last two years, the threat remains significant. Scammers may not directly target the SDOs but could use their names to deceive donors. The most common tactics used by scammers are phishing (pretending to be a trusted contact, such as a bank, a well-known donor, another recognised charity organisation), pretexting (pretending to be an employee who is requesting authorisation for a task) and reverse social engineering (pretending to be a person seeking support from the charity). 

Maintaining a secure website and online helplines can mitigate such risks by providing donors with reliable information and support. For example, having a dedicated team to manage online interactions and monitor for potential security breaches can safeguard both the organisation and its donors. Implementing robust security measures, such as encrypted transactions and secure data storage, is crucial for building and maintaining donor trust. 

Digital divide

The level of technology adoption varies among local SDOs. While some organisations are ahead in digital tool usage, others struggle due to factors like lack of technical expertise to fully leverage digital tools for fundraising and operations. Many organisations lack funding and investments to increase the level of technology usage. The funding issues are more prominent in Sri Lanka in comparison to the rest of Asia, than the issues such as reluctance of staff or awareness of available tools (see table). Additionally, the country’s digital infrastructure is not sufficiently developed to provide uniform coverage across the island. This divide has made it difficult for the SDOs to expand their digital fundraising efforts.

Future directions

As digitalisation increases, the SDOs can reach a wider audience interested in charities. However, many organisations are yet to address cybersecurity concerns. Local charities need training in cybersecurity and digital skills. Collaborations with tech companies and universities can aid growth in this area. Both government and private sector efforts are needed to improve digital infrastructure and provide affordable internet access. Ensuring donor trust and transparency is also crucial. Regular project updates, transparent accounting and clear communication can enhance donor confidence. The SDOs must address concerns proactively to demonstrate their commitment to ethical operations.

(Chaya Dissanayake is a Research Assistant at the Institute of Policy Studies of Sri Lanka (IPS). She holds a B.Sc. (Hons) in Agriculture, specialised in agricultural economics, from the University of Jaffna and is currently reading for an MSc in Integrated Water Resource Management at the Postgraduate Institute of Agriculture, Peradeniya. Her research interests include agricultural policies and institutions, disaster risk management, poverty and inequality, SMEs, women and workforce)