In the realm of education, offering scholarships to underprivileged and needy students stands as a beacon of opportunity. Interestingly, education has long been a favoured field for philanthropists, and the potential to attract more philanthropy to education is encouraging.

However, it has been observed that prospective donors often encounter challenges when initiating scholarship funds, compounded by skepticism around donating. These doubts can range from a lack of awareness about scholarship opportunities to worries about fund accountability and effectiveness. 

As we delve into the philanthropic landscape of India, let's examine these obstacles in depth and discuss how platforms like Kind Circle are simplifying philanthropy with transparency, dispelling doubts, and fostering impactful giving.

1. Information Gap

A significant challenge in the realm of philanthropy is the lack of awareness regarding available funding channels, a factor that often hinders prospective donors. The India Philanthropy Report 2022, a collaborative effort between Bain & Company and Dasra, underscores this information gap and its substantial influence on donors' willingness to contribute. Furthermore, a report from the Indiana University Lilly Family School of Philanthropy in 2022 emphasises how being well-informed about social issues and the needs of individuals or organisations profoundly shapes donors' decisions, motivating them to give in response to crises or identified needs. 

Access to such information empowers donors to make more informed and impactful giving choices, a service that Kind Circle provides by offering complete information about the donation process and causes. Kind Circle, a philanthropic initiative by Buddy4Study, India's leading scholarship platform, also offers donors the chance to discover a diverse student database matching their eligibility criteria established by the B4S team, which currently boasts over 5 million registered scholars across the country and is anticipated to see substantial growth.

2. Accountability Concerns

Accountability concerns often deter potential donors due to doubts about the transparency and integrity of charities and funding organisations. These doubts arise from unclear missions, opaque operations, and the lack of accountability in fund disbursement and impact tracking. The OECD's DAC Reference and Guidelines highlight transparency as a trust-building factor in donor-organisation relationships. Kind Circle places transparency at the forefront with its online passbook, providing detailed records of donations and disbursements. Karta has the capability to download and share this passbook with donors, facilitating a smooth and transparent exchange of information that fosters trust within the philanthropic process.

3. Impact Uncertainty

Donors sometimes have apprehensions that their contributions may not directly impact the intended beneficiaries due to various factors. Lack of clarity regarding how funds are utilised, the perceived presence of administrative hurdles, concerns about intermediary involvement, complexity in the donation process, and a lack of measurable impact reporting all contribute to this fear. Donors desire transparency and assurance that their contributions are making a tangible difference. In this context, Kind Circle’s Scholar Tracking system diligently monitors the progress and accomplishments of scholars, providing donors with regular updates on their academic journey. This transparent and informative approach ensures that donors can see firsthand how their contributions are making a meaningful difference in the lives of the students they support.

4. Concerns surrounding preferences

Often, donors question their ability to align their contributions with their personal preferences and values. To resolve this uncertainty, Kind Circle offers a significant solution. Donors can establish personalised circles, set specific goals, and receive tailored recommendations. This high degree of customization elevates the donor experience, nurturing a deeper sense of ownership and connection with the causes they champion. Presently, donors can actively engage with the platform by launching one of the four distinct types of Kind Circles. Furthermore, the Karta dashboard simplifies the task of Circle admin by facilitating the creation of different roles and administrative structures to ensure the smooth functioning of each Circle.

5. Administrative Complexities

The burden of administrative complexities often deters potential scholarship fund donors, as establishing a scholarship fund, comprehending legal requirements, and managing substantial paperwork can be overwhelming. This is where Kind Circle steps in, excelling in streamlining the donation process and providing a hassle-free experience for donors. Through its user-friendly interface, the platform empowers donors to make a significant impact with ease, eliminating the need for extensive research, individual transactions, and administrative obstacles. Additionally, Kind Circle offers invaluable assistance in defining eligibility criteria and simplifying the application process. Leveraging the expertise of scholarship leaders, Kind Circle expertly handles all aspects of the application process, from receiving applications to meticulous processing, ensuring compliance, and providing responsive customer support. This comprehensive support enables donors to focus squarely on their philanthropic objectives.

6. Apprehension around Taxation

The intricate legal and tax landscape adds to donor reservations about starting a scholarship fund. However, contributing to initiatives like Kind Circle not only allows donors to make a positive societal impact but also offers potential tax benefits. According to the revised tax exemption act from April 1, 2017, donations exceeding Rs 2000 to Kind Circle qualify for tax exemption under Section 80G of the Income Tax Act. Thus, supporting Kind Circle aids students in their education and provides donors with the opportunity for a tax deduction. To ensure transparent accountability, Kind Circle also provides the donors with a 10BE form (80G certificate) generated by the ITR department.