A lot has stayed the same in the sphere of giving in India since colonial times, but there have been many significant changes as well.
Here’s a brief snapshot of emerging trends, all of which indicate an ongoing shift from charity to philanthropy-oriented giving and a gradual shift from addressing immediate needs to bringing about more lasting social change.
Growth In The Volume Of Philanthropic Capital
Today, philanthropy by business, foundations and high-net-worth individuals (HNIs) is growing at a very fast pace. Total private philanthropic funding in India is estimated to grow at approximately 12% annually over the next five years.
Many landmark commitments have been made by Indian philanthropists spurring the interest in Indian philanthropy both at the national and international level. For example, founder of HCL Technologies Shiv Nadar made an annual donation of ₹1,161 crores, according to the EdelGive Hurun India Philanthropy List for 2022.3 Wipro’s Azim Premji, Reliance Industries’ Mukesh Ambani, Aditya Birla Group’s Kumar Mangalam Birla and several others are giving a large portion of their wealth. While a lot of giving in India still happens informally and is not being tracked, the impact created by many individual philanthropists is exceptional. Philanthropists from the Indian diaspora have also been contributing to the upliftment of underprivileged communities in India and across the globe.
Change In The Profile Of Givers
There is also a change in the profile of philanthropists with many coming from non-traditional backgrounds and engaging in philanthropy at a much younger age. More and more women are now getting involved in philanthropy. The EdelGive Hurun List 20225 features many top women philanthropists in India like Rohini Nilekani, Kiran Mazumdar Shaw, Leena Gandhi Tiwari, Manju D Gupta, Renu Munjal and Anu Aga.
The time needed for families to create their first foundation for philanthropic giving has sharply dropped from 30 to 50 years in the 1950s to 15 to 20 years in the 2010s. The average age of giving in India is also dipping every year with a marked rise in the younger generation of philanthropists who are mobilising rapidly to provide their time, skills and networks to support social causes they believe in. They are taking bolder risks and are more willing to try innovative solutions to social problems
Focus On Impact Creation Through Innovative Approaches
There is a visible trend of philanthropists thinking of intended impact before just writing cheques for a cause. Philanthropists are increasingly focusing on ensuring their contributions have the strongest possible impact by setting clear objectives and gathering proof of the impact created.
They are seeking tangible development outcomes by leveraging financial and non-financial resources and engaging with a diversity of social purpose organisations (SPOs) whether for-profit enterprises or nonprofits and non-governmental organisations (NGOs). They are taking a more dynamic partnership approach, providing capacity building support and helping develop management expertise within the organisations they support.
As these trends gather pace and newer, promising ones continue to emerge, it will be crucial to monitor the impact of these advancements on those who are at the receiving end. Is philanthropy bringing about sustainable social change and helping create a just and dignified society for all the country’s citizens? It is our hope that this is the case.
This excerpt is from the book A New Era of Giving: Reflections on Philanthropy for Social Justice by ISDM Centre for Philanthropy for Inclusive Development. This book is a pioneering collection of essays on redefining the scope of philanthropy. It covers a wide range of topics, including the role of philanthropy in advancing social justice, the importance of ethics and embracing risk, the emergence of new philanthropic models and the importance of centering affected communities in all philanthropic efforts.
You can download the e-book and read the whole article by clicking here.
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