Digital fundraising reshapes Pakistan’s charitable landscape

In a country where more than 1% of the GDP is contributed to charity, the traditional image of social workers collecting donations in transparent boxes is rapidly fading.

Pakistan’s charitable organizations are stepping into the future with digital technology, allowing donors to contribute with a simple click rather than a handshake.

The COVID-19 pandemic was a critical catalyst for digital transformation in the country’s charitable sector. With thousands across the country in urgent need of aid, and lockdowns restricting movement while face-to-face interactions posed significant health risks, welfare organizations had to adapt swiftly to continue supporting those in need.

Amidst this turmoil, digital platforms provided a vital alternative, ensuring aid could still reach those in need despite movement restrictions and health concerns.

“Our digital payments have doubled to what they were pre-COVID,” reported Engineer Hafiz Rehan Yaseen, Joint Secretary and Director of Alamgir Welfare Trust International.

Before the pandemic, only 15-20% of their donations came through digital channels. Now, the story is similar across Pakistan’s leading charitable institutions.

But digital fundraising has done more than just sustain donations during crises. It has dramatically expanded the reach of charitable organizations, enabling them to transfer funds to beneficiaries in remote, previously inaccessible locations. This newfound efficiency has allowed organizations to mobilize aid faster, ensuring that funds reach the right people at the right time.

“We disburse payments digitally to thousands of beneficiaries under various programs nationwide,” Iqbal explained.

This capability proved vital during the pandemic, as Pakistan’s overwhelmed healthcare system leaned heavily on welfare organizations to bridge the gaps in essential services. Whether it was funding medical treatments, supplying food rations, or providing emergency financial relief, digital donations enabled swift and targeted support.

The convenience offered by fintech platforms has driven remarkable growth in digital giving.

JazzCash reported collecting 44 million rupees in donations in 2023, which surged to 148 million rupees in 2024, a more than threefold increase demonstrating the accelerating shift toward digital philanthropy as donors embrace the ease and accessibility of mobile payment options.

Other similar platforms have also reported a surge in charitable contributions, reflecting a broader shift in donor behavior.

Yet despite its rapid rise, digital philanthropy in Pakistan still faces formidable obstacles. Zia Akhter Abbas, Executive Vice President of The Citizens Foundation, acknowledges the progress but stresses that the sector has “a long way to go both in terms of market penetration and functionality.”

One major hurdle is accessibility. Many potential donors either lack access to online payment systems or remain hesitant to use them due to unfamiliarity or security concerns.

While urban donors are increasingly comfortable with mobile transactions, rural donors, who contribute significantly to charitable giving, still prefer cash-based transactions. Additionally, Pakistan’s internet penetration, though growing, remains a barrier for many who would otherwise donate digitally.

The financial infrastructure for digital giving also needs improvement, particularly when it comes to enabling recurring donations.

“Pakistan needs an expansion in functionality, such as the ability to issue instructions for recurring payments drawn through the donor’s bank account,” Abbas explains. “Currently, this process is extremely inconvenient, requiring physical forms to be submitted to banks instead of the seamless Automated Clearing House (ACH) transactions used in other countries.”

Beyond technical challenges, donor behavior is also shaped by regulatory and tax considerations. Dr. Amjad Saqib, founder of the Akhuwat Foundation, points out that “People still prefer to send cheques or pay cash as they get receipts instantly and use them for claiming tax rebates.” Without streamlined digital tax incentives, many remain loyal to traditional giving methods, further slowing adoption.

However, Pakistan’s digital donation ecosystem is growing at an impressive pace. The double-digit annual increase in online contributions signals a shift, but traditional giving still dominates. Organizations are continuously working to build trust and improve the donor experience by enhancing digital security, offering more payment options, and increasing transparency in fund utilization.

With Pakistan’s charitable giving estimated at Rs240 billion annually, according to the Pakistan Centre for Philanthropy, fully embracing digital transactions could revolutionize the country’s welfare landscape. Greater adoption of digital tools could unlock unprecedented efficiencies, allowing organizations to allocate resources more effectively and provide aid with minimal delays.

Moreover, the digitization of philanthropy opens new avenues for corporate social responsibility (CSR) initiatives. Many businesses are now integrating digital donation options into their platforms, allowing customers to contribute effortlessly during transactions. This model, known as embedded philanthropy, is gaining traction and has the potential to further accelerate digital giving in Pakistan.

For a nation where generosity is often the difference between survival and hardship, digitizing this spirit of giving could create a more efficient and responsive safety net, one that ensures aid reaches those in need faster, easier, and with greater transparency.

The article does not necessarily reflect the opinion of Business Recorder or its owners