Challenges and opportunities of Indian philanthropy

Source: The post Challenges and opportunities of Indian philanthropy has been created, based on the article “The quality of giving” published in “Indian express” on 26th July 2024

UPSC Syllabus Topic: GS Paper 1-society

Context: This article discusses the recent growth and potential of Indian philanthropy. It highlights increased giving among the wealthy, collaboration, strategic investments in areas like climate action, and the need for philanthropy to address inequality and support sustainable development.

For detailed information on Philanthropy by India’s super rich falls by a third in FY22 read this article here

How Has Indian Philanthropy Evolved?

Historical Giving Culture: India has a long tradition of giving across all communities.

Post-Liberalization Trends: A new form of giving emerged among the newly wealthy and old wealthy with new wealth.

Economic Confidence: With stock market rallies and wealth creation, the rich feel secure to give more.

What Challenges and Opportunities Exist?

1. Challenges:
2. Funding Shortfall: Despite 13% annual growth in social sector spending, India may miss the 2030 Sustainable Development Goals (SDGs).
3. Declining Foreign Funding: Thousands of organizations have lost their FCRA licenses, reducing foreign donations.
4. International Donor Hesitation: Some international donors are exiting India or facing mistrust, particularly on climate issues.
5. Trust Issues: Building trust with the government and other stakeholders remains a challenge.
6. Opportunities:
7. Wealthy Contributions: Ultra-high net worth individuals can potentially contribute over Rs 75,000 crores annually, five times the 2023 CSR spend.
8. Strategic Philanthropy: Shift from traditional giving to impactful engagements led by first-generation wealth creators.
9. Collaborative Models: Growth in pooled funding and co-funding, with organizations like the India Climate Collaborative increasing investments.
10. New Entrants: Funders like Mirik Gogri bringing innovative ideas, with family giving up 15% last year.
11. Intermediary Success: Organizations like Dasra and Sattva opening minds and pockets, with Dasra’s GivingPi involving over 300 families in philanthropy.

For detailed information on Reason for increasing women-led philanthropy read this article here

Way forward

Indian philanthropy is at a critical juncture. Increased giving and strategic investments can help address inequality and support sustainable development, contributing to a more equitable society and economy.

Question for practice:

Discuss the evolution of Indian philanthropy and the challenges and opportunities it faces based on the recent trends and developments.