- Since times immemorial, humankind is witness to a huge disparity between the have and have-nots whose societal standing is largely defined by financial worthiness and affluent considerations. It’s a well-established fact that glaring division within society can never be eradicated where different strata of people coexist. As you are aware, people’s financial worthiness now is generally classified as rich, upper, middle, lower-middle-class, and poor. Of course, people keep moving up and down these classifications as life’s vagaries dictate. It’s also an accepted norm that the affluent category of people proactively indulges in philanthropic activities helping fellow human beings lead their lives with dignity overcoming challenges.
PC: Joe Fisher
- There may arise an argument that why should any rich individual disburse or share his/her wealth since substantial taxes are already paid indirectly contributing to the society’s progression. A valid question indeed. You see, there is also something called empathy, sympathy, consciousness, large-heartedness, and most importantly, experiencing unbridled happiness in giving away wholeheartedly. Altruism must originate from the deep recess of one’s inner self as giving away for the sheer joy is not usually associated with humans. Of course, there are surprises in the form of huge contributions. One such heartening news emerged recently.
- The immense possibility for philanthropy is highlighted yet again by the Rs. 425 crore donations from the families of IT firm Mindtree’s co-founders Subroto Bagchi and NS Parthasarathy to the Indian Institute of Science. IISc, which last year broke into the top 100 brands in Times Higher Education’s Reputation Ranking of global universities, will set up medical facilities focused on cutting-edge clinical research and innovation. Philanthropy in India is growing but the fund flows are too minuscule despite the country boasting many high net-worth individuals (HNIs). There is an upside for this in the present situation too.
PC: Press Trust Of India
- As you know, domestic HNIs funding local causes could help offset the squeeze applied by FCRA restrictions to global non-profit contributions to India. For the uninitiated, the number of Indian billionaires rose to an estimated 142 in 2021, with only the US and China ahead. But a Harvard Kennedy School study of nearly 1.6 lakh foundations across 22 major countries revealed that 97% of foundation assets totaling $1.5 trillion are concentrated in the US and Europe. Thus, not only are Indian foundations ranking abysmally low, their spend rate (expenditure versus assets) was a low 3% against 9% in the US and 37% in Spain. The Indian Philanthropy Report 2021 by Bain and Dasra notes philanthropic funding in 2020 rose 23% to Rs. 64,000 crore.
- While foreign contributions, CSR, and retained donations have stagnated at 80% of inflows, family philanthropy accounted for most of this increase. Further, an Edelweiss study predicted 4 lakh Indian HNI families by 2025 with assets totaling Rs. 360 lakh crore against 1.5 lakh families with Rs. 140 lakh crore assets in 2018, reveal high growth potential for family philanthropy. It is ascertained that Mindtree founders are like another generous tech HNIs. The tech sector accounted for 26% of family philanthropy despite boasting only 9% of HNI families. With India’s public spending in areas like science & technology, health, and education abysmally low in proportion to GDP compared to other countries, philanthropy can help bridge the gap. Hopefully, HNIs will rise to the occasion and contribute handsomely.
