Non-profit Dasra and consulting firm Bain & Company recently released the India Philanthropy Report 2023, which sheds light on the contributions of ultra high net worth individuals (UHNIs) and corporates to the social sector in India.
Decline in UHNIs’ donations
The report reveals that UHNIs’ donations to the social sector in India declined by 5% in the financial year ending March 2022, when the donations made by Wipro founder chairman Azim Premji are excluded. The donations by UHNIs decreased to INR 3,843 crore in FY22 from INR 4,041 crore in FY21. The decline is attributed to the impact of the COVID-19 pandemic on the economy and markets, which affected the wealth creation of UHNIs.
Increase in corporate social responsibility spending
In contrast, corporate social responsibility (CSR) spending by companies in India increased by 5% in FY22, amounting to INR 27,000 crore. The report notes that the pandemic has heightened the focus on CSR activities, with companies prioritizing their CSR initiatives to support the communities they operate in. Additionally, CSR spending has also been boosted by the increased enforcement of the CSR law, which mandates companies to spend 2% of their net profits on CSR activities.
Private philanthropy’s role in meeting SDGs
The India Philanthropy Report 2023 highlights the need for private philanthropy to play a larger role in meeting the United Nations’ Sustainable Development Goals (SDGs) by 2030. The report emphasizes the importance of philanthropy in driving social change and bridging the gap between the state and the people. It suggests that UHNIs could potentially increase their impact by collaborating with each other or with corporates to achieve common goals. The report also advocates for the creation of an enabling environment for philanthropy, which includes greater ease of doing philanthropy, transparent regulations, and greater trust between donors and beneficiaries.
