Reason for increasing women-led philanthropy

Source: The post reason for increasing women-led philanthropy has been created, based on the article “Women-led philanthropy will improve the act of giving” published in “Live mints” on 6th June 2024.

UPSC Syllabus Topic: GS Paper2-governance-Development processes and the development industry the role of NGOs, SHGs, various groups and associations, donors, charities, institutional and other stakeholders

Context: The article discusses the growing impact of women in philanthropy in India. It highlights how women like Melinda French, MacKenzie Scott, and Rohini Nilekani are using their wealth to support various causes.

Who are the key women leaders in philanthropy?

Global Leaders in Philanthropy:

Melinda French: After divorcing Bill Gates, she founded Pivotal Philanthropies Foundation and plans to focus on gender development with a budget of $12.5 billion.

MacKenzie Scott: Post-divorce from Jeff Bezos, she distributed $16.6 billion to over 2,000 NGOs with a ‘no strings attached’ policy, making a significant impact on global philanthropy.

Indian Leaders in Philanthropy:

Rohini Nilekani: Independent of her family’s Infosys wealth, she has led significant philanthropic efforts, focusing on environmental and climate change issues.

Rajashree Birla: Continued the Birla family’s philanthropic legacy by leading CSR initiatives after her husband’s death.

What is the reason for increasing women-led philanthropy?

1. Financial Independence: Women now have more financial autonomy due to ownership stakes in companies. This shift allows them to redistribute wealth as they wish, influenced by pioneers like Rohini Nilekani and Rajashree Birla.
2. The emergence of women billionaires like Savitri Jindal, Rohiqa Cyrus Mistry, and Rekha Jhunjhunwala has indeed boosted women-led philanthropy significantly
3. Inspirational Role Models: Figures such as Melinda French, MacKenzie Scott, and Rohini Nilekani demonstrate impactful, independent philanthropy, inspiring other women to follow suit.
4. Government and Industry Support: Organizations like the Confederation of Indian Industry help channel CSR funds, often led by women, fostering a supportive environment for philanthropic activities.

What is the benefit of women-led philanthropy?

1. Innovative Giving Approaches: MacKenzie Scott’s “no strings attached” policy allowed NGOs full control over the funds, challenging traditional restrictive practices.
2. Direct Impact on Societal Challenges: Women tend to focus on complex issues with greater accountability. A 2024 Bain and Company-Dasra study shows women donate a larger portion of their wealth to directly achieve better outcomes.
3. Role Model Effect: Leaders like Rohini Nilekani inspire other women, creating a multiplying effect that encourages more female involvement in philanthropy.
4. Increased Accountability: Women show a higher degree of responsibility in fund usage, leading to more effective and impactful philanthropic activities.

Question for practice:

Examine the factors that have contributed to the rise of women-led philanthropy in India.