Image credit: European Economic and Social Committee
By Roopa Kudva and Kartik Sahni
The role of philanthropy has become more critical today
Although India has a centuries-old tradition of philanthropy by way of charitable donations, organised philanthropy at scale is fairly recent. In the few decades before and post-independence, large-scale philanthropy was mainly undertaken by a few business houses as a way to contribute to nation-building. Think the likes of Tata, Birla, and Bajaj.
Where philanthropy stands today
This is no longer the case. Economic growth has contributed to a rising middle class and people becoming wealthier at younger ages. Consequently, many more families, professionals and self-employed are looking to “give back” with their wealth and time. Regulations around corporate social responsibility have provided a nudge to corporations to support social causes. Platforms like GiveIndia have “democratised giving” and made it easier to pool smaller retail donations.
There is now greater professionalism within philanthropy. Philanthropists are supported by specialised advisors, consultants and scores of talented professionals who are in this space for the long haul. A reorientation of philanthropy from charity towards development has been the basis for a burgeoning number of social enterprises in India. Collaborative initiatives with other philanthropists and areas like impact measurement are receiving greater attention.
Yet, several challenges remain in Indian philanthropy realising its full potential. The “India Philanthropy Report 2021” by Bain & Company and Dasra suggests that Indian philanthropists still donate a much smaller portion of their wealth relative to countries like the US. There are also significant sectoral and regional concentrations. For instance, education and healthcare receive 75 per cent of family-based giving in India. Many critical sectors like environment, rural development and citizen empowerment remain underrepresented. Similarly, 85 per cent of donations by ultra-high net-worth (UHNI) individuals are spent in three cities alone – Mumbai, Delhi and Bengaluru. This unequal distribution of resources needs to be addressed.
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