The stage is set for a monumental leap forward in the philanthropic movement, heralding an era of ‘More, Sooner and Better Giving’
India has always been a nation with a deeply ingrained concept of philanthropy. This ethos has given rise to many philanthropists, who have contributed immensely and helped build and support many of the great institutions of modern India. The Tata’s being the foremost example of such modern Indian Philanthropy.
Today, philanthropy in India stands at a transformative juncture in terms of both, the quantum and the quality of giving. According to Knight Frank’s wealth report for 2023, the number of Ultra-High Net Worth Individuals (UHNIs), in India will grow by over 58 per cent in the next five years. India has seen the rise of many Unicorns in the past decade and is poised to see a rise of another ~150+ unicorns in the next few years, indicating a massive wealth surge. This is fortuitous as the demands on philanthropists for greater philanthropy will only increase which we hope will be met with a surge in philanthropic giving as well.
UHNIs are redefining the giving landscape in India-they are now more actively engaged in the giving process, dedicating time to ensure their wealth drives substantial systemic improvements. Amit & Archana Chandra, Ashish Dhawan, Ajit Isaac, Harsh Mariwala, Kris Gopalakrishnan, Romesh and Sunil Wadhwani, Desh Deshpande and Vikrant Bhargava are a few of the great examples of new-age philanthropists, developing a portfolio of philanthropic initiatives including institution building and systemic change projects. This trend is only going to accelerate.
Another key trend to emerge is the gradual reduction in the average age of philanthropists. These younger and newer donors, representing both current family benefactors and first-generation wealth creators, are breaking through traditional barriers with innovative and disruptive approaches to giving and are branching out to address issues beyond the historically favoured domains of healthcare, education and livelihoods. The emerging tribe of NextGen philanthropists coupled with the next generation of grassroots organisations-driven by young, committed and tech-savvy professionals-is set to transform the giving landscape in the coming years.
The proportion of technology entrepreneurs is also increasing and these philanthropists have given more generously when compared to other sectors. While they account for about 8 per cent of overall wealth in the space, their philanthropic contribution makes up nearly 35 per cent of all giving-Azim Premji, the Infosys founders, Rohini Nilekani, Shiv Nadar, the Kamath brothers, Subroto Bagchi and Sanjeev Bikhchandani are great examples of new age Philanthropists from the Tech sector.
There’s also a growing sensitivity to privilege among the younger generation of family donors and they are increasingly putting that privilege to work. Some of them are also carving out professional paths dedicated to philanthropy.
However, despite the many positive trends in UHNI giving in India, challenges remain. First, there’s an urgent need for India’s UHNIs to increase the relative proportion of their giving. The current rate of giving doesn’t match the pace of wealth accumulation. The 2023 India Philanthropy Report by Bain & Company indicates that excluding contributions from Wipro’s founder Azim Premji, UHNI donations fell by 5 per cent in fiscal year 2022 even as their wealth increased by over 9 per cent. Also, when compared to their peers in the United States, the UK and China, Indian UHNIs contribute significantly less relative to their wealth, in some cases, giving is lower by as much as a 10x factor.
Second, philanthropic causes are becoming more diverse and varied, as some causes become more urgent like climate change and humanitarian crisis while traditional causes-education, healthcare, poverty alleviation and livelihoods-remain at the top of the agenda. Philanthropic capital is also increasingly being tapped to address newer and often neglected causes in India such as sports, arts and culture and mental health amongst many others. Therefore, prioritising and allocating appropriate philanthropic capital to causes becomes crucial.
Third, UHNIs need to engage themselves more in philanthropy by giving more time and effort. They also need to collaborate more with other philanthropists to pool their resources-money, time and effort-and take on more ambitious projects, create greater institutions and experiment with newer models to make a difference. They also need to experiment to see how technology can be leveraged to transform and scale services and service delivery in almost all areas, particularly in education, healthcare, skilling and climate change.
This transformation will also be aided by a new compact between the donor and the donee that is based on greater mutual respect and sees greater participation by all stakeholders in the decision-making processes for where, how and when resources get deployed and how the impact is measured. We can expect 2024 to be a milestone year for the philanthropic movement in India with More, Sooner and Better Giving than ever before. Personal philanthropy can play a unique catalytic role in helping resolve many challenges in India, the time is now.
(The writer is CEO Accelerate Indian Philanthropy a Philanthropic initiative; views are personal)
