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Digital Fund Raising Gains Momentum, Gaps Linger

IPS essay highlights trends, opportunities and challenges

Digital Fund Raising Gains Momentum, Gaps Linger

Digital fundraising is gaining momentum in Sri Lanka, a recent essay by the Institute of Policy Studies’ Chaya Dissanayake noted, a trend underscored by the Suwaseriya Foundation’s recent success in raising Rs1.2 million through Karuna.lk, the first online fundraising platform in Sri Lanka. The Suwaseriya Foundation hosts the 1990 free emergency ambulance service.

This milestone, indicative of the growing acceptance of digital channels for social welfare, signals the potential for broader adoption of these platforms by Social Delivery Organizations (SDOs), Dissanayaka noted in her essay titled Click to Give: The Future of Digital Fundraising in Sri Lanka.

Social media, particularly Facebook, has become the primary tool for fundraising among SDOs in Sri Lanka, with 83 out of 90 surveyed using the platform, a trend fuelled by the younger generation, who are more inclined to donate to causes that resonate with their values and are endorsed by their peers.

However, the shift to digital comes with its own set of challenges. While digital tools can significantly enhance the reach and efficiency of SDOs, they also expose them to increased cybersecurity risks. The Sri Lanka Computer Emergency Readiness Team reported 64 active cyber threats in the first half of 2024, with 34 classified as high-risk. Despite this, only 67% of the surveyed SDOs have implemented cybersecurity plans, leaving them vulnerable to attacks that could undermine donor trust.

Moreover, there is a significant digital divide among SDOs. While some deploy advanced digital tools for fundraising and operations, others struggle with adoption due to a lack of technical expertise and funding. The uneven development of digital infrastructure across the country, particularly between urban centres like Colombo and Kandy and more rural areas, exacerbates this disparity.

To unlock the potential of digital fundraising, Sri Lankan SDOs need to invest in cybersecurity measures, improve digital literacy among staff, and collaborate with tech companies and educational institutions, Dissanayake suggests. Additionally, there is a pressing need for government and private sector efforts to enhance the digital infrastructure and make internet access more affordable and widespread.

As the digital landscape evolves, SDOs must adapt their strategies. With adequate investments in technology and security, digital fundraising could become a powerful tool for driving social change in the country. 

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