In an era defined by digital transparency and traceability, this comprehensive document delves into the nuanced challenges of anonymous donations through modern banking channels such as UPI and QR codes. It offers a thoughtful analysis of the evolving legal landscape, operational realities, and compliance imperatives faced by charitable institutions today. Key Highlights: - Redefining “Anonymous” in the Digital Era – Understanding how donor anonymity intersects with traceable payment systems. - Legal Framework & Compliance – A detailed examination of Section 115BBC and related statutory provisions. - Judicial Interpretations – Summaries of relevant court judgments emphasizing substance over form in donor identity compliance. - Operational Challenges – The compliance burden on NGOs amidst evolving regulatory expectations. - Tiered Compliance Solutions – Proposing balanced, reform-oriented approaches that respect both transparency and operational feasibility. - Impact on donor behaviour – Donors prioritizing philanthropy over tax benefits, leading to less disclosure of personal information.